What do high interest rate & low inventory mean for the SWFL Real Estate Market??
Samantha H. Corrochano, MBA
Luxury Real Estate Professional & Vice President of The Dellatore Real Estate Group
Each year, I attend the Naples Area Board of Realtors Economic Summit and feel so grateful for the insighful information provided by leading economists. This year was no different and will certainly help me to help you!
What do high interest rate & low inventory mean for the SWFL Real Estate Market??See what the nation’s most respected economists had to say at September’s Economic Summit!
According to?Florida's?Chief Economist, Dr. Brad O’Connor, inventory is at an all-time low. While it may?feel as though?inventory was lower during 2021 and 2022,?this was not the case.?During that time, homes were selling so quickly, they did not remain on the market long enough?for us to understand the actual amount of inventory.?They were listed and sold so quickly that there was never an accumulation.?Today,?while the sales have slowed?due to various factors such as rising interest rates, the inventory is historically low.?Florida sellers?continue to see many cash transactions and?a?strong?local market!
Interest rates remain over 7% as we approach Q4.??The?National Association of Realtors chief economist, Dr. Lawrence Yun, spoke on the topic at the 2023 Naples Economic Summit. Dr. Yun believes that interest rates will drop below 6% in early spring of 2024.???This will create?"noise"?in the market?allowing?buyers?and?sellers to make?"moves" in more ways than one!?Local property appraiser, Cindy Caroll,?was also present at this year's summit. She?confirmed Yun’s rate drop prediction, noting that we are heading into an election year, which will also have a significant impact on lowering interest rates.??Caroll also stated, “There is no cause for concern for a wide-spread market correction in the Naples area.”??Simply stated, SWFL will continue to be one of the nation’s strongest real estate markets due to its beautiful weather?and?gorgeous beaches.
Still want to know more or want to explore the purchase of your DREAM home in Southwest Florida? Call me at 239-405-9304.
Samantha H. Corrochano, MBA