Interest rates on a 30 year fix rate mortgage(FMR), have reached new historical lows, steadily going down, since the beginning of the year. On November 5th, it was at 2.78% on a 30 year fix rate mortgage. That is crazy! Unbelievable! Since 1971, or since Freddie Mac started to keep track of interest rates, they have never been this low.
As the summer ended, it appears now that pent up demand from Spring, caused a surprising rebound in the U.S. housing market, with a year-over-year increase of 19% in single family sales, in August. September sales fell off slightly across the nation and locally. and in October, they actually increased . Demand is still high, while inventory remains low, continuing a robust seller's market, throughout the country and Miami Lakes.
Locally, for the most part, sellers are holding on to their asking prices longer, with mixed results. Out of the 15 sales recorded in October, 12 sold below their original listed price, after an average of 25 days on the market. Three of the sales took 200 days or more, while longest sale took 440 days to close.
Due to the current low inventory of properties available in Miami Lakes, we should continue to see a strong seller’s market during the rest of the year. Presently, there are less than 55 single family homes for sale, and less than 35 townhouses, villas and condos available. Things may change however, due to the uncertainty with the presidential election, which as of this writing, the results are unknown to me.
A WORD TO THE WISE
It is likely that many local homeowners may face foreclosure, when mortgage moratoriums and forbearance periods end, for many homeowners. Not all homeowners will have the ability to continue making mortgage payments, if they remain unemployed. Many will be forced to sell, while they may still have some equity in the the property, and it's not a complete loss. The longer families with financial challenges wait to sell, the more likely they will walk away with less in their pocket, as the market gets potentially flooded with properties for sale, and lowers real estate prices.
Miami Lakes if a high-worth area, where many residents are business owners. Their financial situation is is unknown at this time. If some of their business fold, many will be forced to sell, before the market tanks and they lose any equity accumulated.
If you are struggling financially and have a mortgage, it may be wise to realistically access your situation. Don't lose the equity in your home, to a down market, which may be here faster than anyone thinks. We are in uncharted waters, so prudence and intelligent decisions now, may save you from further future loses.
When we experience the housing bubble and financial crisis in 2007-2008, many homeowners were in denial of their financial situation, and failed to get out early and lost everything. If you have equity in your home, consider your options well.
If you need help figuring things out, give me a call at 786-553-7530. I'm here and ready to answer any question you have, and to help you explore your options.