Homes and Luxury Homes in Sarasota are selling big right now — something one might not expect in times of social distancing and widespread unemployment.
But the COVID-19 pandemic has had a surprising effect: lowering interest rates. It has created low inventory in the housing market. And it has eliminated the “just looking” crowd.
How low will interest rates go?
Mortgage brokers and real estate agencies are considered essential services. While all are doing good business in Sarasota, national trends may differ. Surveys show home sales have decreased in other parts of the country.
Many folks have kept their homes off the market because of concerns about coronavirus, but the pandemic has led to low interest rates.
According to HousingWire.com, the buying of mortgage-backed securities is aimed at providing liquidity and pushing interest rates lower, which would bolster the economy. Buyers don’t have a lot to choose from, but they are finding great deals on interest rates.
A lot of factors go into the interest rate a home buyer can get on a mortgage. In general, though, 30-year mortgages are going for 3% to mid-3%, while 15-year mortgages are at upper 2% to lower 3% resulting in people getting their dream home with a very low payment
A year ago, a 30-year mortgage had an interest rate of more than 4%, while a 15-year mortgage interest rate was also above 4%.
Rates could even go below 3%. That would help realtors make even more sales, while they keep abreast of coronavirus protections.
COVID-19 has made less houses to choose from because fewer people are putting their houses on the market. It was hard to predict 5 months ago what the market would be like today and if home prices would start to pull back, but as of right now prices are not likely going to drop in our area or throughout the state of Florida due to the housing inventory shortage.
There is no doubt that between the pandemic, a volatile stock market and an uncertain economic outlook Sellers are keeping their properties off the market and, inadvertently, driving inventory levels lower. Despite the curve ball 2020 has throw at all of us, it is genuinely an advantageous time to sell your home if you’ve been on the fence about it.
Norton Hammersley’s real-estate practice group provides comprehensive legal representation to individual and corporate clients in the acquisition, development and sale of residential and commercial real property, leasing and financing of single-family homes, multi-family projects, residential subdivisions, hotels, office buildings, condominiums, shopping centers and other real-property developments throughout Florida.
For more information regarding our various Sarasota Real Estate Lawyer services, please contact one of Norton Hammersley’s real-estate attorneys: Peter Z. Skokos, Sam D. Norton, Ally S. Glauser or Michael P. Infanti.