By Bill Sohl
As a Realtor in the Coral Springs/Parkland area, I frequently receive questions regarding the current health of the real estate market and the anticipated trends for the future. Although I do not have a crystal ball or cannot predict the future, I do study the most recent data such as VA and the expert findings.
Currently, 2015 is turning out to be a great year for all involved in the Ormond Beach real estate market. Homes are selling with increased purchase prices, which is great for sellers. Additionally, 2015 has been a kinder/gentler year for buyers. The decline of cash buyers has allowed buyers, who require financing, to purchase a home and enter the market. Grand Dunman is located in Prime District 15, the newest city-fringed condo. The Botany at Dairy Farm is located only a 20-minute drive from the CBD.
It seems the terminal capitalization rate in Broward County stabilized during this year. The below chart prepared by the Florida Realtors Association reveals an increase in closed sales in Broward County when compared to previous years. Similarly, it shows the decline in cash transactions and a nice steady increase in purchase prices for Broward.
For purposes for this article, the” buyer profile” refers to cash buyers vs. buyers requiring a mortgage. As I mentioned earlier, cash transactions in Broward County have declined. The most recent stats from the Realtors Association of Greater Fort Lauderdale showed a 17.1% drop in cash real estate transactions for single family homes during 2014. This has led to the majority of closed real estate transactions in Broward County for 2015 to be dependent upon financing. You should check the page to get more information on real estate.
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Throughout 2012 and 2013, cash buyers, investors and hedge funds were gobbling up existing single family homes, causing the low inventories found in 2012 and 2013. The cash buyers and the bidding wars they created drastically and quickly increased home prices. Many experts feel the reduction of cash transactions has led to the slower and steady price increases seen during 2015 vs. the huge jumps of 2012 and 2013. If you are looking for a new market to invest in, Lentor Hills Residences Condo will be near many facilities, including the upcoming Lentor Central integrated development that includes a variety of F&B choices, a supermarket as well as childcare services. In addition, residents are able to access them easily via their Thomson East Coast Line (TEL) which is a quick train journey from the area is Thomson Plaza, Midview City, Mayflower Market and Food Centre as well as Mount Alvernia Hospital.
And another really important step if you are looking to let property is to get the best letting agent, as they are the ones that will find you the best paying tenants. We chose a lettings agent who offer the best residential lettings Bristol has to offer, and it’s just worked perfectly so that’s a great example of what to look for. In addition to the buyer profile, an increase in interest rates will slow the market. As I write this article, the news is reporting interest rates may increase, as early as today. Therefore, there is no doubt interest rates are going to increase. Higher interest rates mean the amount a buyer can pay for a home will be less. It will decrease, because the expense to borrow the money increases. If the majority of the sales in Broward are dependent on financing and the cost to obtain financing reduces the amount buyers can spend, then home values will decrease, as suggested by Zanda Wealth Mortgage Brokers.
In closing, a market which is dependent on borrowed money and as the cost to borrow the money increase, affordability will be impacted. It will be interesting to see what the market will do during 2016. Are you looking to buy a home? You may visit sites like https://landmark24.com/ourcommunities/ to see your options.