That May be a Light You See in the Tunnel
In the tunnel that is the Tampa Bay area Real Estate market,
there appears to be some sort of light. Usually we say the light at
the end of the tunnel, but we aren’t near the end of this tunnel.
But there is a shimmer of light inside the tunnel.
The Fed’s lowered the rate last week, and now the rates are going back up. This is a good sign of things to come. When the rates go up after they have been down, it is because of demand. Consumers jump on the wagon and the banks raise the rates to get a little bit of their money back.
When the banks get over-whelmed with home buyers and homeowners looking to get a mortgage or refinance an existing one, they have to raise the rates to slow the push back down and make some profits as well. It happens all the time, and it usually happens when the market is strong. This is a sign of a light in the tunnel.
The news we keep hearing is that prices keep coming down as the inventory of existing homes keeps going up. This isn’t a bad thing for home buyers looking for a great deal. The market has every shape, size and style home you could imagine. All at prices that are closer to their real values and definitely more affordable.
Regardless of how you look at the tunnel, the light is there. It may be a little fainter than we would like, but it is still a light. And where there is light, there is hope. Hope for a better, more affordable market for everyone concerned. It’s a win-win situation for all. Buyers get a great deal and sellers finally get their wish-a sale!
We look at the trends in the Tampa Bay real estate market, and we see one constant-falling median price. This is not the end of the world. A lot of people made a lot of money while the median prices were 2-plus times over-inflated. Hopefully these people made smart choices with their profits. If they did, then good for them. If they didn’t, then they probably aren’t as optimistic about the interest rates and their moving. We can’t please everyone.
Now we will watch the rates go up and down thru the summer. As the market continues to show signs of strengthening, we will see more changes in the rates. Then the Fed will drop their rate and allow even more people to take advantage of the “bailout money”. By mid-summer, we should see the lower rates spark more mortgage writing and reduce the inventory of homes for sale in Tamp Bay. More light in the tunnel.
So, as was mentioned earlier, we are beginning to see some light in this tunnel. Banks are beginning to make adjustments to interest rates to slow down a robust trend in mortgage writing. This is a good sign for anyone looking to buy or sell a home. If you can wait a bit longer, watch the rate trends and jump when the time is right. This is the light in the tunnel…come to the light!!!