Current financial markets turmoil creates big real estate opportunity in SW Florida. Just last year the Fed was talking about rising rates continuing though 2019. They began the process in 2018 but abruptly halted once the world economy didn’t cooperate. If we raise rates too fast, it not only slows economic activity here, but it raises the dollar to a higher level which isn’t what you want when you’re correcting a trade imbalance.
Europe has negative interest rates. Imagine putting $1,000 in the bank and getting $950 back when you withdraw your money. That seems crazy to us, but Europe is in trouble. Our fed wasn’t looking at the whole picture when they made decisions last year, but they are now.
They realize the trade tariffs with China will slowdown economic activity worldwide, so this week Fed chairman Jerome Powell said the Fed may have to step in and adjust as economic conditions warrant. This is code word for interest rate reductions, which sent the stock markets higher on Tuesday when he made those comments.
All this has sent interest rates down about 1% since January. This has raised buyer’s purchasing power by 11% on this fact alone, which is putting home buyers back into the market. Nobody knows how long these trade negotiations will last and where they’ll end up. Republicans and Democrats alike agree they’re necessary as China has been taking advantage of our companies for too long. We must endure short term tariffs for long term gain. Let us show you how low your payments could be with the current financial markets turmoil.
Because of this, it’s created a window of opportunity for home buyers. With rates around 4%, buyers must seize this opportunity. Four factors influence the affordability of a home, and that’s price, interest rates, taxes, and fees. Interest rates can be one of the largest factors in the cost of a home over the time a homeowner owns their home.
Buyers today are also looking at the total cost of ownership. They ask how much the condo or HOA fees are, if there are mandatory club fees, CDD’s, and if the taxes are in the city or county.
Check Out Our App
A great agent can answer all these questions. Websites typically show the asking price and photos, but they don’t always tell the whole story. We have a mobile app that shows much of this information, and an automatic major update coming out within 60 days will provide you with information that you can’t get anywhere else. It will simply blow you away. It’s in final testing right now.
One way to get the app is go to www.SWfloridaopenhouse.com or simply email me at Brett@topagent.com and I can email or text you the link. Yes, you can search all the open houses on the app too. The real power will be in the release 60 days from now. Meanwhile, the app will show you what HOA or condo fees are in each property and we can verify if there are any other fees you might want to know about.
Of course, you can always call us at 239-489-4042. We’ll be happy to discuss your options and how you can take advantage of these low rates for your benefit. If you’re thinking of selling and would like to know how much we could sell your home for, and how much you’d net in your pocket at closing, ask for Sande or Brett at Ext 4, or visit www.SWFLhomevalues.com
See Last Week’s Article: Lee County Florida Home Prices Have Been Flat For 2 Years
Good luck and let us know how we can help you make your next move!