954.895.9662 zonahorton@gmail.com

Interest Rates are Increasing —

According to Freddie Mac’s latest survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% in December 2016. Interest rates had been hovering around 3.5% since June of 2016, and many of you may be wondering why the significant increase. 

A presidential election creates uncertainty in the markets. As November approaches, many investors pull their funds from the more volatile and less predictive stock market to invest in Treasury Bonds.

When this occurs, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them; therefore, interest rates decrease.  Once the President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again.

Will a rise in interest rates really affect our South Florida Market?

Davie:  In the past 30 days, of the 72 sales, 30 were cash!

Cooper City:  In the past 30 days, of the 32 sales, 9 were cash!

What About our Lack of Inventory?

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited.

Why Is This Great for Davie and Cooper City Sellers?

When there is less than a six-month supply of inventory, we are in a seller’s market, and we will see appreciation. More than a seven-month supply, we are in a buyer’s market and should expect depreciation. We are, and will remain, in a seller’s market with prices still increasing until more listings come to the market. 

Where does Davie Stand?

                                 COMPARED TO 2015                                                     
  % of Change Current #
Single Family Homes for Sale -15% 224
Single Family Homes Closed -20% 27
Single Family Homes Pending -27.3% 44
     
Condos for Sale +3.4% 131
Condos Closed +5% 28
Condos Pending 0% 33
     

There is currently 3.8 months of inventory in Davie across all property types – which is extremely low and dictates a Seller’s market.

Where does Cooper City Stand?

                                COMPARED TO 2015
  % of Change Current #
Single Family Homes for Sale -33% 78
Single Family Homes Closed -14.7% 10
Single Family Homes Pending -34.6% 22
     
Condos for Sale -39.3% 13
Condos Closed -57.1% 3
Condos Pending -25% 7
     

There is currently 2.9 months of inventory in Cooper City across all property types – which is extremely low and dictates a Seller’s market.

If you are planning to upsize or downsize, now is the time.  Many people are in South Florida during the winter months and are looking for a retreat from the snow and cold weather.  More New Yorkers are purchasing in South Florida.

I look forward to a prosperous 2017 and a Happy New Year to each and every one of you!