Sunshine State on your mind, but worried about skyrocketing prices? We got you! This episode dives deep into Florida's real estate scene.
We're also talking rentals. Remember those insane rent prices? Yeah, they're finally cooling down. But with mega landlords buying everything in sight, will your wallet ever catch a break?
And let's not forget the new residents flooding in! How will they impact the market? Buckle up, because we're forecasting the future (no crystal ball needed).
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Is red really going down in Florida? Find out more in this week's Real Estate Market Update. But before that let's take a look at this week's housing market data. This week, the number of applications to buy a house took a nose dive compared to last week. We're talking about a 1% drop, which might not seem like much, but it's like the housing market hit the snooze button and it's adulting for a little bit. This one's basically flatlining. People aren't hitting Google up anymore than last month to search for houses on sale. Looks like the house hunt is on hold for now.
Speaker 1:
With these interest rates that makes sense. At $374,047, the median home price is not playing At the latest sneaker drop. That kind of cash could buy you a whole shoe store If the housing market got you concerned. The median asking price for a house is at a whopping $404,273. Forking over rent every month, the median mortgage payment is $2,685 at a 6.74% interest rate. That takes spending that much on fancy coffee every month for years, except you would actually own the place.
Speaker 1:
The housing market is pretty weird right now. As there are 15% more houses on the market this year compared to last year, more options to swipe through a competition might also be a bit fierce. There are more houses on the market these days. The number of homes available is up or.9% compared to last year. Think of it as more options to browse for your dream house on the real estate apps you might use. And, lastly, homes are typically only on the market for 47 days, so be ready to DM your realtor if you see a hot listing that you like that caught your attention. Now, 43 days seems like a long time, but it's not, guys. We're really just going back to normal, normal time or normal whole time to sell a house is usually between 60, 90, 120 days, sometimes depending on the house. That's normal, guys. We just came off doing 85 miles per hour on the highway to doing 45 and we're feeling the shock. Right, we were Renters, were flying off the market in two weeks 50,000 over over asking just 18 months ago, guys, and now we're talking about 43 days and that seems like an eternity. But in the grand scheme of thing, guys, this is not an eternity. Get attention Florida renters remember those rent spikes that you saw in 2021?
Speaker 1:
Right now is slowing down and, in some places, even dropping. There's a ton of empty apartments, vacancies sitting out there and not enough people looking to rent. The prices can't keep going up as fast. Right, that's what's happening in Florida. There are more apartments available and there might be fewer renters because Some giant corporations have been buying up houses like crazy to rent them out to, basically, the regular American consumers.
Speaker 1:
These are the mega landlords. Right, these big Institutional buyers are buying all these single family houses. Here's the plot twist. These company owned a ton of houses. They own over a hundred thousand of them and, according to the report in the state of Florida, what they decide to do with all of those houses could affect rent prices in the future. So the good news red isn't going up like crazy anymore. In Florida, you might actually be able to afford that brunch, mimosa you've been highing. But the jury is still out on whether this is a permanent Cool down or is a permanent or just a temporary break in the storm. So stay tuned for future updates. This story is still unfolding and will keep you posted on what these mega landlords do.
Speaker 1:
Next, as a whole, we are seeing less demand in rents, right, less demand in renters in the market, which is causing rents to flatten out and, in some places, decline. What we have been seeing with the report is showing. That is that January and February we saw a decline in rents across the country and in March things flattened out. If you're landlord, you're hoping for this, if you're renter, you're not, but we're expecting rents to keep coming back up. I want to share something on this, something to consider. We have 1.8 million Immigrants that came into this country that we know of, that have to go back to court or they have a hearing or whatever. We know undocumented immigrants. That's that we know of. Let's just say there's another 200,000. So we're round up to 2 million people. Before we had these interest rates hikes that Slowed down the real estate market, we had anywhere between depending on who you talked to 3.5 to 4 million Units short for housing in the United States of America. Now you just dump another two million people that need a place to live.
Speaker 1:
If you're thinking about being in real estate, my recommendation is get into real estate now. Don't wait to buy real estate. Buy real estate and wait, because those people Need to be housed. Those people are gonna need a place to live and the government is Going to have to solve that problem. They're gonna solve the problem the way they solve every other problem they throw money at the problem, so be the solution to the problem that's coming down the pipeline. Simple man right 2 million new people is gonna put a demand, a major demand, on Real estate. So there's a lot of gloom and doom people out there as it pertains to real estate.
Speaker 1:
I believe that the greatest opportunity right now in the economy is real estate. If you can make the numbers work and you can buy real estate with the current interest rates, the interest rates will come down. The feds already said that they still plan to drop the interest rates as of today, march 21st 2024. Yesterday, j Powell said that they still have plans to drop the interest rates Three times this year. That would be an estimated of 75 basis points. When they do that, the buyer demand is gonna come back because we have a shortage of housing. Guys, what do you think is gonna happen? Love to hear your thoughts in the comments. Let me know what you think, and this has been your weekly real estate market update. I'll see you guys next week, peace.