According to a recent survey by FreeRateUpdate.com mortgage rates have stabilized at 3.750% for 30 year fixed mortgages, and for 15 year they are 2.75%. Of course borrowers must have good credit in order to qualify for these rates. The National Association of Realtors also released June numbers citing that existing home sales were down by 1.2% from last month, however they were up by 15.2% from last year. Nationally, this is an incredible increase. Since mortgage rates have stabilized, purchases are expected to continue, while potentially at a slower rate given price increases.
The current national inventory is at 4.9 months, which is incredibly slim. A healthy market is usually at a 6 month supply. Given the shortage in inventory, and the continued demand for homes, economists expect the prices of homes to continue to rise. In Miami, we are seeing the prices of homes sky rocket as a result of a drastically reduced supply of homes. Homes are being sold at list price or above in many cases as bidding wars insue. The luxury home market is witnessing increases in list prices of nearly 20% from last year and the supply is in many cases at 3 months or below. If you are looking to sell your home, now really is the time. Contact us today.