Now May be Best Time to Sell Your SW Florida Home

Most people in SW Florida realize the real estate market has been recovering for some time now.  So many either lost their homes or felt like they were in prison trapped in their own homes because they had negative equity.  For the past two years more and more homeowners have been able to sell due to rising equity. Today we’d like to discuss why now may be best time to sell your SW Florida home.

Find out how much your SW Florida home is worth Fort Myers real estate

We still find a large number of home sellers who are surprised that they can finally make a move.  Some like that they are in positive equity positions again and sell while some believe the market is increasing so why sell now?Now May be the Best Time to Sell Your SW Florida Home

Home prices in Lee County are up 44.16% in 2 years.  That’s a remarkable jump but that rate won’t continue.  Here are some facts that might help you decide if now is the right time to sell your home:

  1. The price of your home has gone up and so has the price of your replacement home. If you’re considering selling in Lee County and buying another one locally, waiting can cost you money
  2. Interest rates are going up. We’ve already noticed a slow creep and they’re expected to go higher in the next 2 years.  Not only will rising rates limit the buyer pool of your home, it will increase borrowing costs for your next home should you choose to finance.
  3. Insurance rates are climbing on older homes. Insurance companies may raise rates on homes with older roofs, plumbing, and electrical wiring.  It may cost more to stay in your older home than a newer home.
  4. Maintaining an older home can be costly. You may have to spend money on a new roof, appliances, paint, pool, and more in the next 5-10 years.  Some sellers elect to put that money into a newer home instead of throwing money at an older home that costs more to maintain and insure.
  5. Your window for opportunity may be shrinking. As interest rates rise your options may dwindle.  It may cost you more to move in 3 years so you decide to stick with what you’ve got.  You’re stuck with an aging home that costs more to insure and maintain simply because you missed the interest rate window.

If you’re unsure about what your home is worth or if now is the right time, we have answers for you.  Simply call the Ellis Team at RE/MAX at 239-489-4042 and we’ll discuss your options.  Everyone’s situation is different and we can guide you through the maze. We can give you detailed pricing estimates and discuss all the factors that affect you.

Why Now May be Best Time to Sell Your SW Florida Home Fort Myers Real Estate

We also have an online computer model that gives you an estimate of your home’s value.  It rates your neighborhood, provides a list of comparable sales with the date your neighbors sold and the sold price per square foot, and an estimate of your home’s value.

Simply go to Topagent.com and click on the Find Out What Your Home is Worth link.  It’s simple and Free.

As always, if you’re serious about making a move there’s no substitute for speaking with a professional.  We’re happy to talk.  We’re here for you either in person or online.  We hope you appreciate our efforts to bring you quality information and we hope that when you decide it is time to sell, you’ll consider calling the Ellis Team at RE/MAX. If you think now may be best time to sell your SW Florida home, we’ll handle you with care. 239-489-4042 or TopAgent.com

Good luck and Happy House Selling!

Introducing Bella Casa Luxury Condominiums in Fort Myers

SW Florida Real Estate Market Update

Visit our Google+ Business Page

Feel free to view our Virtual Tours

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Resources

Golfing in SW Florida

Fishing and Boating in SW Florida

Lee County Florida Sports

SW Florida Entertainment

 

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

Last week we discussed economic forces that will affect SW Florida real estate.  Much of this information was shared at the CCIM Outlook Conference in January.  Dr Lawrence Yun was the keynote speaker and he was a wealth of information.  Lawrence is the chief economist at NAR (National Association of Realtors) This week we’d like to focus on renting versus buying real estate.

Lawrence had some slides for the commercial brokers about how rising interest rates will eventually cause cap rates to rise, but there is a cushion so they may not have to rise immediately.  Rising cap rates can negatively affect property values.

Lawrence also presented data how rates are expected to rise starting this year and how that will affect mortgage rates.

Renting Versus Buying Real Estate Monetary Policy by Federal Reserve

If you look at the Monetary Policy graph you’ll notice that the Fed has kept the Fed Funds rate at 0%.  The Fed Funds rate is the rate banks and depository institutions lend balances to each other overnight.  I won’t bore you with details on how this works, but suffice it to say 0% is pretty low.

0% also isn’t the norm and those rates are not going to hold.  The Fed has halted its Quantitative Easing Program and the Fed Funds rate is most likely next.  This will affect mortgage interest rates going forward.  The 10 yr Treasury bond yield stands about 2.4% and is expected to rise to about 2.9% this year and 4.2% next year.  Mortgage rate changes are closely tied to the 10 yr bond yield changes.

Renting Versus Buying Real Estate

Rents are rising rapidly now and are expected to further rise.  As interest rates go up, this will put further pressure on rents to rise.  Landlord’s borrowing costs go up which forces them to attempt to raise rates if they can get it.  Rising rates also forces more buyers to rent as they qualify for less mortgage payment, which adds to the rental pool.  This in turn helps landlords raise rents.

owners equivalent rent renters rent

The best time to buy is before the mortgage rates start climbing.  When they do buyers finally get it and there is a buying frenzy, because nobody wants to pay higher rents or higher mortgage payments.  With low inventory it’s not a good scene to be caught in a buying frenzy when rates start to rise.  This puts an increase on prices, at least temporarily.  When the demand subsides, you as a buyer are left with the picked over houses nobody else want and higher rates to boot.

Jobs are rising in Florida.  If you’re renting right now you should seriously consider your options.  Last week we showed a graph how owning real estate is one of the drivers to accumulating long term wealth.  Let your new home do the heavy work for you.  You’ve got to live somewhere anyway, so why not pay yourself first instead of your landlord?

Can you really count on Social Security and Medicare being there for you when you retire?  Most people today say No!  Call the Ellis Team at RE/Max Realty Group 239-489-4042 and we’ll guide you through the process.  We’ll even get you pre-approved for a mortgage and show you the steps it takes to purchase.  Don’t wait until your lease is up.  Don’t wait for rates to rise!  Your options dwindle the longer you wait.

Feel free to search the MLS at www.Topagent.com  Don’t hesitate to call us for help or with questions. 239-489-4042  We’re here to help you get on the path to homeownership and wealth.  It’s not complicated when you have a professional in your corner guiding you every step of the way.

Good luck and Happy House Hunting!

Introducing Bella Casa Luxury Condominiums in Fort Myers

SW Florida Real Estate Market Update

Visit our Google+ Business Page

Feel free to view our Virtual Tours

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Bella Casa Website

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

This past week I had the distinct pleasure to offer my insights at the annual CCIM Outlook Conference at Harborside Event Center.  While I was waiting to speak I had the pleasure of sitting with Lawrence Yun, Chief Economist from NAR, and headline speaker at this year’s event.  Dr Yun and I talked about economic forces that will affect SW Florida real estate.

Lawrence and I chatted about what he sees affecting the SW Florida real estate market and the economy as a whole.  He was kind enough to share his presentation so I thought I’d share a few of his slides and recap some of his thoughts.

Economic Forces That Will Affect SW Florida Real Estate

He was very bullish on housing as a way to develop wealth.  He showed some slides that illustrated how much wealth Americans have today versus the past.  One slide that caught my eye was a comparison of renters vs. homeowners.  Homeowners have used their home to build wealth.  Many homeowners have accumulated enough wealth to own their home and put money in the stock market.  Most renters live paycheck to paycheck because they’re not accumulating wealth.  This is one reason they’re not benefiting from a rising stock market either.

Economic Forces That Will Affect SW Florida Real Estate

Rents are rising and he sees rising rents for the foreseeable future.  I really wish I could share all his graphs but suffice it to say buying a home makes a lot more sense than renting if you can qualify for a mortgage.

Dr Yun also shared a jobs graph for the Fort Myers – Cape Coral market.  Jobs have been rising in the area since 2009.  This is one reason our housing market has stabilized and has healed.

Fort Myers Cape Coral jobs growth

Dr Yun expects treasury yields to increase .4% in 2015 and 1.3% in 2016.  He predicts mortgage rates will be 6% by 2016  As we know, each 1% rise in interest rates takes away about 9% purchasing power for the buyer, so rising rates can put a squeeze on how much buyers can afford.

Lower oil prices have helped to add purchasing power to today’s buyer, so if oil stays low, it could offset the negative affect of rising rates.

He did say that if oil stays low that one of 3 leaders of Iran, Russia, or Venezuela would not survive.  Lower oil prices are helping US consumers but it’s putting tremendous pressure on leaders of those countries.

GDP has been below 3% for 9 straight years, so not everyone is feeling good times.  We also have about 6 million less working in US than before the recession.  Our economy is creating jobs but not fast enough.

Dr Yun expects SW Florida to flourish for the next 3 years.  We’re in a good spot and things are looking rosy.  He didn’t predict after 3 years.

He pretty much sums up what we’ve all been feeling here in SW Florida.  Jobs are up, housing prices are rising, and things are looking better going forward.  There are some things that may slow growth down, but for most part SW Florida is in for good times.  Just don’t get used to 30% gains in real estate. Locally median single family home prices rose 8.6% in 2014, and that’s just fine with us.  That’s a more sustainable climb than 30% every year.

To search for your home on MLS go to www.Topagent.com  If you’d like to sell you can also check out the site and get your home’s value.  Remember to Always Call the Ellis Team 239-489-4042  We’ll handle you with care!

Introducing Bella Casa Luxury Condominiums in Fort Myers

SW Florida Real Estate Market Update

Visit our Google+ Business Page

Feel free to view our Virtual Tours

Check out Bella Casa Condominiums.  We’ll be happy to show you this project in South Fort Myers

Other Bella Casa Website

By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042