By Keith & Tina Slater, Coastal Home Advisors
What ultimately drives up prices is when there is a heightened demand and a lack of supply.
Real Estate prices in the U.S have been increasing at a healthy rate of around 3-5%annually since 2014. The events that transpired beginning March 2020 impacted all of us. A record number relocated due to changing demographic trends. The government slashed interest rates, postponed mortgage payments, and wrote checks to subsidize. It also became evident that new construction since the early 2000’s had not kept up with the growing population.
Government Policy – Interest Rates
In 2019, interest rates were low, relatively speaking and 2022 holds predictions of increasing significantly. The average interest rate for 30-year fixed-rate mortgages increased from 3.5% to 3.64% in just two weeks’ time.
Demographic Trends
Almost 16 million in the U.S moved in the first 6 months of 2020. Much of this was due to an increase of working from home or remotely. Quarantine has also been a factor in a unique re-consideration of what people demand of their home. Whether it be a home office, home gym, or to not be located in a metro center at all. These motivations could precipitate more home sales and purchases in years to come.
Lagging in New Construction
Homebuilders pulled way back after the last crash, and they never fully ramped up to pre-2007 levels. Now, there’s no way for them to buy land and win regulatory approvals quickly enough to quench demand. While builders are building as much as they can, a repeat of the overbuilding of 15 years ago looks unlikely. As builders bring more available homes to market, more homeowners decide to sell and prospective buyers get priced out of the market, supply and demand can come back into balance. Prices will again stabilize.
What’s the difference? Real Estate Broker, Realtor, and Real Estate Agent
In a Real Estate Transaction, there’s a good chance you’ll work with a Real Estate Broker, a Realtor, or a Real Estate agent. Though all of these real estate pros are licensed to help you buy, sell, or rent a home, they are distinct from one another, especially when it comes to their qualifications and which rung of the professional ladder they occupy.
Real Estate Brokers have completed all the requirements of a Realtor and also have additional training and completed licensing requirements. They can work independently and hire other real estate agents to work for them. They have extensive legal training, and are qualified to handle all aspects of a Real Estate Transaction.
• A Realtor is a licensed real estate agent who is a member of the National Association of Realtors (NAR). Members must comply with NAR’s strict Code of Ethics. They must work for a sponsoring broker or brokerage firm.
• Real estate agents have a professional license to help people buy, sell, and rent real estate. They must work for a sponsoring broker or brokerage firm as well.
Did you know?
There are 10,785 Realtors/Real Estate agents in Pinellas County. Keith & Tina Slater’s volume in sales are in the top tier $10+ million. Choose your Realtor wisely.
Visit online www.coastalhomeadvisors.com, call 813-601-6047 or email Keith Slater at keith@coastalhomeadvisors.com.