The US housing market is indicating an imminent correction, according to many industry experts. With mortgage rates showing signs of ease, home prices are coming down to a more accessible range.
According to the National Association of Realtors, the median existing-home sales price witnessed a 2.3% YoY rise to $366,900 in December. However, it was a drop if seen from a month-over-month perspective. It was down nearly 11%, compared to the record high of
$413,800 in June. Housing industry experts believe consumers have all the reasons to be hopeful about the market in 2023. According to Lawrence Yun, chief economist at NAR, “markets in roughly half of the country are likely to offer potential buyers discounted prices compared to last year.”
To better understand the ground reality, we looked at the Bill Sohl Luxury Homes Team, the renowned Parkland real estate provider’s property guide. Bill, a seasoned Parkland realtor for many decades now, has been a licensed general contractor, certified home luxury marketing specialist, and a parkland resident since 1995.
Since he is also a member of the National Association of Realtors, the Southeast Florida Board of Realtors, the Gold Coast Builders Association, and the Parkland Chamber of Commerce, Bill’s properties are indicative of the standard market prices at which properties are being traded across the country. Bill Sohl’s Luxury Homes Team’s properties are spread across Heron Bay, Cypress Head, Fox Ridge, Pine Tree Estates, and Parkland Golf and Country Club. The location spread adds to the robustness of Bill Sohl’s property prices.
Even though into luxury homes, Bill Sohl’s property range is reflective of accessibility in the market. His team has homes for sale from under $400,000 to more than $2 million. For instance, a 1,400 sq. ft home in the gated neighborhood of Heron Bay is available at $535,000. Another 2,030 sq.ft home in Parkland Terraces is available for $585,000. The median existing home-sales price seems valid when we look at these property prices.
Yet, the price of a property or its value is a function of many factors. For any industry stakeholder, be it the buyer, the seller, or anyone in between, it is crucial to be aware of these factors to ascertain prices correctly.
How Recent Economic Trends Affect the Value of Your House
General macroeconomic trends prevailing in a country have a definitive bearing on the valuation of your house. Interest rates are the most crucial component among these. With interest rates rising, the cost of a mortgage rises, decreasing the demand in the market. The lowering of demand eventually results in the lowering of property prices.
The overall economic health of a country also impacts the market. The parameters that play key roles in deciding the health of the economy include the GDP of a country, employment data, manufacturing activity in the economy, the prices of goods, inflation, etc.
Understandably, the health of the economy has a directly proportional relationship with the value of housing properties. The market is healthy when the economy is healthy, translating into correct pricing structures for the consumers to buy and the sellers to offer.
Policy Trends
Another crucial factor that plays a key role in shaping the nature and dynamics of a market is government policies. Since we were discussing Parkland real estate, buyers looking forward to
relocating to Parkland or real estate investing in Parkland would look into any available tax credits, deductions, or subsidies available in the region, while going through the list of Parkland houses for sale.
What applies to a county or a state also applies to the federal level. Favorable government incentives would strengthen the market. And there are real-life examples where governments have leveraged such incentives to boost a sluggish market. An example could be the first-time homebuyer’s credit introduced by the U.S. government in 2009, which resulted in 2.3 million people onboarding the home-buying bandwagon with renewed interest.
Income and Infrastructure Trends
Rising income, with new demographics and communities becoming affluent, impact the value of your home. People want their homes in a social infrastructure with all the required amenities.
Quality schools being built in the locality, surging employment opportunities in a region, and new shopping, entertainment, and recreational centers being set up change the outlook towards a region. And the changing outlook definitely reshapes the price-value dynamics.
More people getting employed with higher wages would mean people having bigger budgets for a home. The demand will go up, and so will the prices. If a region has a lot of potential buyers competing for fewer homes, the sellers of the properties would be in an advantageous position.
On the other hand, if a region has many homes but not as many buyers, the buyers would be at an advantage. And all these help decide a property’s right value.
Navigating through this complex supply-demand dynamic may become difficult for a buyer who does not have the luxury to invest a long period of full-time efforts in researching an area’s real estate scene. It is where experts like Bill Sohl Luxury Homes Team prove effective. If you are interested in buying properties in Parkland, Florida, and its adjacent communities, the team will help you with a full spectrum catalog of availability.
It will show you prices and every vital aspect that helps decide the infrastructural quality of the property. It would help you get into a community that is safe and equipped with provisions. It will give you multiple choices fitting your specific demands to maximize your investment returns. To test these benefits, you can start by contacting Bill to list or buy a home in Parkland, Florida.
