Ocala housing market trends are governed by supply, demand and the cost of borrowing, the same factors that influence all real estate markets. Therefore, it comes as no surprise that the supply of homes listed for sale in North Central Florida is closely linked to the national trend. Fewer and fewer sellers are putting their homes on the market. As a result, even with the economic impact of the pandemic raising serious concerns, prices have ticked up slightly in Marion County over the last two months. At the same time, average days on the market have declined sightly. I would shy away from predicting the direction of this market over the near to intermediate term.
While there are as many opinions as prognosticators, the forecast I prefer was recently published by Florida Realtors. This association has served our profession for over one hundred years. Its analysts forecast a price decline for residential properties of one percent over the next twelve months. Clearly, that suggests that the market will remain reasonably stable despite the economic and health related dangers we face.
How buyers view current Ocala housing market trends:
The residential real estate market seems to be stabilizing. However, historically low interest rates have made home ownership more affordable than it has been in sometime. As a result, buyers are very actively seeking to purchase homes in the near term. However, in a period of declining interest rates and economic distress, buyers are typically cautious about acting too quickly. As interest rates decline, they consider the possibility that waiting a little longer. Of course, they hope this will allow interest rates to decline further and offer better value. At the same time, they anticipate that difficult economic times will be upon us for a while. Therefore, home prices will soon decline as well. Of course, buyers would reap hansom rewards if they remained patient in that eventuality.
So why are buyers so eager to move quickly today? Obviously, they are aware of the signs that point to stability in home prices instead of a collapse. Further, they anticipate that the Federal Reserve is unlikely to lower the prime lending rate additionally in the foreseeable future. Since the Fed’s lowering of prime to zero caused interest rates to plummet, they expect borrowing cost have bottomed. Of course, another consideration causing upward pressure on demand the current low cost of borrowing. Because of it, it is significantly cheaper to own than to rent.
Why are sellers reluctant to act?
However, why sellers are reluctant to take action is a little more perplexing. On the other hand, maybe it is not very hard to understand at all. It may simply boil down to fear of the pandemic. Fear of the dreaded COVID-19 is natural and taking steps to protect yourself and your family is clearly appropriate. Furthermore, we understand and respect that only you can decide how best to ensure your safety and that of your loved ones. However, you may be interested in how the real estate industry has evolved in the face of the threat of infection we face.
Today we emphasize implementing CDC recommendations. Therefore, the wearing of masks, social distancing and appropriate hygiene are minimum steps you should expect from your Realtor. Additionally, virtual tours and open houses, electronic transaction processing and zoom meetings are becoming industry standards. Because of concern for safety, many Realtors also offer the option to handle transactions electronically from first showing to closing. Perhaps knowing this will give you the level of comfort you seek.
How current market conditions may influence you.
Most sellers are looking to continue home ownership by up scaling, down scaling or making a lateral move to a new area. Therefore, they would be wise to consider the value of selling or buying in this market and take action. Because of historically low interest rates, property values are holding steady and in many markets have actually risen recently. Additionally, the low inventory of listed homes makes this a seller’s market. But we are in the rare situation where in the midst of the seller’s market, homes have become more affordable due to the declining cost of financing. Therefore, due to reduced seller competition and strong buyer demand, there is value in selling now. Additionally, there is great value in replacing a home now because home ownership has become so much more affordable.
Ocala housing market trends suggest that opportunity knocks and those who take action will benefit greatly.
Bellow are a few articles we have compiled which make enjoyable reading and paint a clear picture of the forces at work in our current current real estate market.
Current market trends present a golden opportunity for sellers and buyers and they who act will be amply rewarded.
Andrew Kruglanksi, broker
Ocala Home Guide Realty, LLC
Website: Ocala homes online