The housing market in Volusia County and central Florida continues on an upwards trend. Failing to take advantage of today’s housing costs may leave you priced out in the near future.
Top Reasons to Buy a Home ASAP
Last year’s pandemic shutdowns caused financially conservative homebuyers to freeze, putting their homeowning dreams on hold. This freeze was understandable since the unpredictable shutdowns and a less-than-stable economy meant families needed to hunker down as they waited to see whether they’d remain employed and able to pay day-to-day bills.
Today, however, the economy is coming back with a bang. And, more importantly for the housing sector, the economic slump has had a completely different effect on the housing market in desirable locations in coastal states throughout the United States.
In fact, the work-from-home lifestyle that became our “new normal” made it possible for professionals to leave their city dwellings and branch out into the suburban and rural outskirts where desirable amenities, demographics, and a healthier life pace are a major draw.
That continued migration from dense cities to more urban and rural landscapes is a driving force behind these three reasons why buying a home now is your wisest course of action.
1. It’s a boom, not a bubble
All of the leading financial and real estate experts agree; we are in a continuing housing boom and not a housing bubble. Moreover, unlike bubbles that burst, current figures demonstrate that housing prices will continue to go up for quite some time. If you’re ready to buy a home and you currently qualify for a loan at today’s prices, waiting too long could mean losing that pre-qualification status due to increasing median home prices.
There are several reasons why Florida is especially popular right now and why our state is being flooded by residents from New Jersey, California, and other states.
- A more balanced pandemic response. Residents who were unhappy with how their states responded to the pandemic are packing up, selling their homes, and moving to states whose governments responded in a way that aligns with their values. This is especially true for young families whose children were banned from classrooms for months, where mask regulations persevere, and where vaccines may become mandatory.
- Tax incentives. Florida is also known for its compelling tax incentives. New Jersey and California residents pay exceptionally higher taxes than Florida residents but don’t feel they see the benefits reflected for the good of the whole. Our lower state income taxes and other tax incentives are a draw for business owners as well as individuals and families.
- A sense of community. City dwellers often complain about not knowing their neighbors but pay it little mind when they spend most of their days in the office. All of that changed as more people began to work from home. Now, people have a more vested interest in their immediate neighbors and the local community, and DeLand offers a wonderful community in which to live, work, and play.
None of these draws are changing or going away anytime soon, which is why our current real estate market is considered more of a boom than a bubble. And, that brings us to our next point…
2. Demand continues to outpace supply
Economics 101 teaches us that prices soar when the demand is greater than the supply. Unfortunately, that’s the exact situation we find ourselves in here in DeLand and the surrounding areas.
According to a recent article on the Bay News 9 website, approximately 845 new residents move to Florida every day. That trend is expected to continue until 2025. The article goes on to explain, “Realtors and builders can’t keep up with demand. And buyers often can’t move quick enough to snatch up a property before it’s sold.”
This has led to what we call a “Seller’s Market,” and homebuyers in the most competitive areas are going to great lengths, including offering well above market price to buy their preferred home. As an article on Business Insider put it, “Dwindling housing supply has fostered intense competition marked by bidding wars and all-cash offers.”
This imbalance between the limited supply and increasing demand highlights the aforementioned fact that we’re experiencing a boom rather than a bubble. Another sign of a housing boom? Florida home builders don’t have to speculate because new construction home sales are often finalized before a “For Sale” sign ever goes up on the lot. This point may sound like a con more than a pro until you consider the next one.
3. Home prices (and interest rates) are the lowest they’ll be for a half-decade
When you consider the housing boom and the projected 845 people per day moving to Florida through at least 2025, it makes sense that the supply/demand issue will continue for another five years. If that’s true, it means today’s housing prices are the lowest they will be until at least 2026.
The other driving force between elevated housing prices and the continued low mortgage interest rates available to qualifying buyers points to an interesting relationship between the effects of the pandemic on certain sectors of the economy (such as the service and travel industries) and the alternative reality for many professionals who remained successfully employed through the pandemic’s entirety. The government’s desire to support those hurt by business closures and unemployment means interest rates are holding steady at a low 3% to 3.5% averages, and this benefits homebuyers who have a down payment at the ready or for first-time homebuyers qualifying for 0% down loans.
If you currently qualify for a mortgage, now’s the time to take advantage of both today’s “low” housing prices as well as lower interest rates – both of which are bound to go up in the next several years.
Ready to Buy a Home in DeLand?
Buying a home is a big step, and timing is everything. All the experts agree that now is the time to get into the Florida housing market, so you don’t risk escalating market trends and can take advantage of lower interest rates.
The licensed and experienced real estate professionals at Southern Exclusive Realty are committed to helping Central Florida families find the right property to fit the next phase of their lives. Our network connections can help your offer get to the top of the pack and we strive to make buying a home as stress-free as possible. Contact us online to schedule an appointment, and let’s start looking for your dream home. You can also give us a call at 386-279-7244.