Ocala home trends offer surprises. We are living in uncertain times and intermediate housing market trends are unclear. For example, after an eight week period that saw year over year single family home sales drop by an average of 33.8% per month, June saw a huge and unexpected rebound with sales outperforming those of June, 2019 by 37.9%. These sales were accompanied by an uptick in home prices, making the statistics even more dramatic. But how can these results be explained in the light of the disconcerting trends in rates of COVID-19 infections we have seen since our economy began to reopen in early May?
I believe that pent up demand and historically low interest rates have created a perfect storm to push sales upward. For example, today’s long term mortgage rates have dropped below 3%, making homes more affordable than they have been in many years. Furthermore, there are signs that rates are continuing to decline. For example, this past Friday United Wholesale Mortgage, one of the country’s largest lenders, announced a new 15 year loan program that offers borrowers an interest rate as low as 1.875% for both purchase mortgages and refinances. With spectacular rates like these, it is becoming much cheaper to buy than rent. So is it any wonder that home sales are on the rise?
Ocala Home Trends: Robert Shiller’s Take
However, the skies are not all cloudless and bright blue. In an article just published by the New York Times, Nobel Laureate economist Robert Shiller acknowledges that the real estate market in the suburbs remains lava hot. Not surprisingly, Ocala home trends support this thesis. But he points out that we have been there before, only to see a dramatic correction. Fortunately, Dr. Shiller does not see a direct correlation between where we are today and where we were just before the subprime crisis. After all, today’s crisis enveloped us because a pandemic was upon us. Additionally, it arrived during a period of strong economic growth. Therefore, we were in a better position than ever to absorb the economic blow.
Of course, the two situations are not totally without commonalities. The subprime crisis descended upon us because of poor lending practices and a media frenzy. When the press began focusing on a housing bubble, it stirred fears. These fears were the straw that broke the camel’s back and launched us on a downward spiral. Today, we cannot discount the possibility that fears will once again be our worst enemy.
Opportunity Knocks
However, we have an opportunity that we would be wise not to ignore. The tight supply of homes listed for sale allows sellers to maximize value. Simultaneously, the historically low interest rates make it more affordable than ever to own a home for the first time or to upgrade. Therefore, we advise that you act with caution. But don’t let this once in a lifetime opportunity pass you by. Don’t over extend. Allocate no more than 30% of your monthly income to housing costs. At the same time, don’t ignore the affordability of real estate in this market.
Having presented the case for taking advantage of opportunities, I’d now like to change gears a little. Here are a few articles about trends in housing design that are fun to read, entertaining and thought provoking. I hope you enjoy them as much as I do.
Open Floor Plan Homes: You Really Want One? The Pros and Cons
Open floor plan homes, those with no walls separating the kitchen, dining and/or living area, are all the rage today. According to the National Association of Home Builders, 84% of new single-family homes have fully or partially open layouts. Read the article on realtor.com >
Brass? Hexagons? These Are the Top Trends from High Point Market
For the editors of ELLE Decor, one of the most valuable aspects of any trade show is being able to spot the trends that are emerging in the design community. We can easily visit 20-plus showrooms on any given day, and after seeing the new introductions from companies far and wide, certain similarities start to emerge. Read the article on elledecor.com >
Interior Design Trends 2020: Top 10 Must See Home Decorating Ideas | Decorilla Online Interior Design
The beauty of design is its ability to morph, adapt, and incorporate influences that enhance style and function. The interior design trends 2020 exemplify this in a way that tells a story. With their fingers on the pulse of the latest developments, our top online interior designers shared the trends that they are seeing this year. Read the article on decorilla.com >
The Best Living Room Trends of 2020 for this Summer | Decoholic
DECORATING IDEAS Your house is an investment you will never regret about no matter how sophisticated or conservative it may be. For that investment it’s important to follow the rules. And this is what we are going to talk about in today’s article. The living room trends of 2020 are here to inspire you! Read the article on decoholic.org >
The precarious, yet amazingly opportunity filled times we live in dictate special consideration. Proceed with caution, keep informed and don’t let the opportunity pass you by.
Andrew Kruglanski, Broker
Ocala Home Guide Realty, LLC
andy.k@ocalahomes.online
website: Ocala homes online