Is Now the Time to Buy or Is Now the Time to Sell?

We are in a buyer’s market.  The market is now a seller’s market.  Now is the time to buy.  Now is the time to sell.  Interest rates are low.  Interest rates are soaring.  CONFUSED???  With all the mixed messages out there, many consumers are confused as to what they should do.  This week’s blog post will explain what type market we are currently in and what current interest rates mean to people trying to buy homes in St. Augustine and northeast Florida.

For the past several years the St. Augustine real estate market, just like the rest of the country, has been a market favorable to buyers.  Average prices of homes dropped drastically, interest rates were low, and there was a lot of inventory.  There was also an influx on new construction communities will nice incentive packages.  Over the past several months real estate around the country but especially real estate in St. Augustine has begun to change.  We have now entered a seller’s market.  The inventory levels have dropped drastically.  In some neighborhoods there are no houses for sale at all.  Due to the low inventory, list prices are on the rise.  Sellers also do not have to make as many concessions during closings (i.e. paying closing costs)

Last week interest rates also took a major jump.  This is being caused by changing monetary policies by The Fed, stating they will no longer be printing more money.  The stock market has also been climbing causing people to remove their money from mortgage bonds and place it in the stock market so they can get a better return on investment.  Due to the Dow Jones drop yesterday interest rates have stabilized today.  Current interest rates as of today are the following:
               FHA        4.25%
               VA          4.25%
               Conv       4.75%
               FB          4.25%

So what does this mean to you, the consumers?  If you are wanting to buy a home in St. Augustine or any of the surrounding areas, you need to begin the process now.  With interest rates on the rise you will qualify for less than you did a month ago.  If interest rates continue to rise you will qualify for less tomorrow than you do today.  If you are wanting to sell your home in St. Augustine or any of the surrounding areas now is the time to do it.  Inventory levels are dramatically reduced from just a few months ago and the market will yield you more money than in previous months.  Whether you’re wanting to buy or sell TEAM JOHNSON can help you.  We have a 5 member team each with our own specialties.  We will work hard to achieve a sale.  Give us a call today at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com