At the beginning of the COVID-19 crisis everyone in involved in the real estate industry held their breath to see what would happen with the housing market. Since the quarantine fell at the end of the first quarter, a slow down was anticipated in the second quarter.
Without fail, in the Oakland Park real estate market, from 2019 to 2020 there was a 36% decline in real estate sales. In simpler terms that means there was 82 less total sales in 2020 than during the second quarter of 2019. The good news was that the values held when it came to single family homes while condo values decreased only slightly.
In Oakland Park from the first quarter of 2020 (178 total sales) to the second quarter of 2020 (135 total sales) there were 43 less total sales. There were 22 less single family home sales, and 21 less condo sales from the first quarter of 2020 to the second quarter of 2020. However, just as the year over year statistics showed the prices of single family homes not only held but increased. Condo values declined slightly but not enough to raise any panic alarms. See the table below for more specific data on the quarter over quarter change.
*Data used to compile this table was taken from the MLS
As everyone held their breath the Federal Reserve gradually began to lower interest rates in order to incentivize buying. The plan worked as homeowners and prospective homebuyers began to apply for refinancing and mortgage loans.
Billy Broyles, a loan officer for Fairway Mortgage, shared with LivingInOaklandPark.com that he has been non-stop busy since interest rates went down. Broyles further elaborated:
“Lower interest rates have led to more people seeking to loans for purchasing and refinancing. Our turnaround time for home loans was 10-12 days but with the increased volume it is now closer to 3 weeks“.
On July 16th interest rates hit a record low, dipping below 3.0% for the first time ever (FreddieMac.com, 2020). The consequence of these continued lower interest rates is that they have incentivized even more potential buyers to seek loans for houses. This coupled with more stringent restrictions for loans means that those buyers that are out looking are highly qualified. While qualified buyers are running into a very low supply of homes on the market to choose from, for sellers it is a perfect storm.
The increased demand for homes plus stable home values means if a person has been thinking about selling, now is a good time to put their home on the market. The low inventory of available homes for sale has inevitably tipped the market in favor of Sellers. In a Sellers market scenario, such as the one that has emerged in the last few months, Sellers can command higher prices for their homes and be less flexible when it comes to negotiating terms.
That being said a house will only sell for the value it can it bear in the market. So while full price plus offers may come in, the house’s appraised value will ultimately determine the sale price. With this in mind, it is important for any Seller to carefully consider all terms proposed by potential buyers and be reasonable when negotiating.
Freddiemac.com. (2020, July 16). Mortgage Market Survey Archive : Compilation of Weekly Survey Data for 2020. http://www.freddiemac.com/pmms/archive.html
EDITOR, PUBLISHER, WRITER, PHOTOGRAPHER, REALTOR®
Désirée Ávila has called Oakland Park her home for over 33 years. In addition to publishing LivingInOaklandPark.com, Désirée has been featured in print publications, locally and abroad. Désirée was an award winning teacher for 10 years and has a doctoral level education in Educational Technology. She is currently a licensed Florida Realtor® and is committed to a high-level of professionalism.
Désirée consistently professionally develops herself and has earned several different professional designations and certifications in real estate including the PSA, e-Pro, AHWD, SRS, ABR, and SFR. She was also awarded the C2EX, Commitment to Excellence award by the National Association for Realtors (NAR). This award is given to Realtors® that distinguish themselves for their commitment to excellence in the real estate industry.
She is esteemed by her real estate colleagues and has consistently received 5 star reviews from her clients. Her philosophy about real estate is that being a Realtor® is a way of teaching and helping people, and in the process a real estate transaction may occur, that is to say her foremost priority is and has always been about helping others.
She is dedicated to her hometown of Oakland Park and works consistently on building and fostering a strong community. She is passionate about photography and loves to read books about history ; the more detail the better! In addition to English, Désirée is fluent in Portuguese, Spanish, French and Italian.
Check out her real estate websites:
Search for New Construction Homes with Désirée : www.IWantToBuyNewConstruction.com
Visit her real estate blog at www.DesireeRealtor.com