Home Buyers, Sellers Rush to the Finish Line - GlobeSt
April 27, 2022Jeff Taylor, managing director, Mphasis Digital Risk, tells GlobeSt.com that there continues to be a rush to the finish line as home buyers anticipate upcoming rate hikes from the Federal Reserve and push to lock in contracts and rates before the increases begin.
“We believe these dynamics have caused a bit of a frenzy, as prospective buyers were bidding way over asking price to lock in at lower rates and secure a home before the market becomes unaffordable,” Taylor said. “It’s typically easier to amortize $40,000 over asking price at 2.85% than at 5%—an important consideration coupled with a record low number of existing home inventory.”
Florida is one state that is still seeing a good bit of activity—likely because many people want to live there, according to Taylor’s recent survey of homeowners. Weather, family, amenities and taxes, in that order, are the chief reasons people want to live there, he said.
Additionally, the Florida market has experienced a 15% increase in cash buys compared with a year ago, which may indicate more investors are buying in Florida, he said.
