Space Coast Real Estate Market Facing ‘Chill’ Amid Winter
By Space Coast Daily // November 14, 2022
Without a doubt, the winter brings with it a cold snap, even in a sunny place like Florida. However, for many people, this is the perfect time of year to think about selling up. Whether it comes to wanting a fresh start in the New Year, looking to raise capital for an investment, or simply looking to move to a new location, selling your home on the Space Coast is a common talking point among families.
Sadly, if you waited until this winter to try and make a sale, you might regret your decision. The weather isn’t the only thing dipping at the moment – house prices are enjoying a pretty specific and particular cooldown, as well. Indeed, some industry experts even suggest that the Space Coast realty market has been ‘overvalued’ for a while now – and reality is now beginning to bite along with the cold snap.
The real estate market is also seeing a big dip across the country thanks to the Federal Reserve’s decision to increase interest rates. This is having a pretty specific impact not only across the Space Coast but other parts of the country. For example, holiday homes in places like Louisville used to be a common choice due to their affordability – the reduction in prices nationwide has made this potentially a less competitive marketplace.
Quantity of sales and cost of sales are both down
Indeed, the cost of home sales were down in both numbers and the cost of the homes. Pending sales are falling down because people are simply not buying at the moment. The uncertainty around interest rates means that many would-be buyers are not as keen to hop into the market as they might have been even a few months ago.
Interest rate hikes always have an impact on home sales – both the price asked for and the number of actual sales happening. Recent studies have also shown that the Space Coast area has been shown to be home to a few locations regarded as ‘overvalued’ in terms of the price of a property in that market.
Rising interest rates paired with overvaluations are often a pretty nasty cocktail of circumstances. In a market that is still recovering from the pandemic and the economic shock that produced, things do not look likely to get any better right away.
As prices continue to shift to reflect a market predicated on the need of buyers, sellers might need to adjust their expectations or look for a less profitable but generally quicker, easier route to selling.
Taking action in a challenging realty market
What can you do about this? You might need to think about selling for a smaller price than you had originally wanted. In some cases, the cost of repairs and renovations can simply go beyond what is affordable for the average homeowner. Whether you are trying to sell a property on the Space Coast or you are trying to shift a second property, you might need to consider going to a cash buyer.
You can get cash for your house from home buyers in Louisville – or anywhere else in the country, including the Space Coast – simply by selling to the right people. Given the intensity of the market and the reduced capability for asking prices, you might find that the cash value is – once you take into account taxes, fees, etc. – not actually much lower than the price you would get from a traditional home sale.
Things are changing, and the housing market is seeing prices dip to match the market. Expect this to remain the case for a while, both on the Space Coast and beyond.
