One broker claimed on Varney Co. that the collapse of California-based Silicon Valley Bank SVB has now sent tidal waves to Florida's real estate market.
It's cooled down a bit. The days before we could put properties on the market and we would expect a bidding war within a few days, Sandals Realty Group broker Amanda Glass told FOX Business Ashley Webster. According to the real estate expert, SVB's insolvency causing bank-run contagion fears didn't help the stability of the economy or mortgage rates. There is no guarantee that they can secure an affordable mortgage elsewhere, which causes some residents to stay put, even though mortgage rates are currently up and homeowners may want to sell as soon as possible.
As of Thursday afternoon, mortgage rates plunged a quarter of a percentage point or more for all key repayment terms, with 30 year rates falling below the 6% mark. Homebuyers who want a low-interest rate and smaller monthly payments may want to lock in a 30 year rate today ahead of likely rate fluctuations, according to Credible.
They're going to have higher property taxes and increased insurance in addition to that. Glass said that it all plays a factor into it.
The number of homes sold in Palm Beach County has decreased, with data from FloridaRealtors.org showing single-family home sales are down 21% and condo sales 38% from a year ago.
It's shifted more towards the buyer's market. The sellers have to do what buyers are interested in at this point and adjust accordingly, Glass said.
The number of investors buying up property to rent out in the Sunshine State has shifted with recent market changes as well, according to the broker.
She explained that it's adjusting because they're not getting the rate of return they used to when they could invest in Florida real estate. Glass pointed out a recent surge in the number of real estate agents leaving the tough and transitory market because of the recent surge in the number of real estate agents working in the industry for 19 years. A January agent membership will dip this year after January numbers showed a decline from its October 2022 peak, according to a report from the National Association of Realtors.
She detailed how she worked through the whole short sale and foreclosure crisis and everything, and now she's seeing it happen again and more.
Nearly 1,000 new residents are moving to the Sunshine State every day, and will need homes to live and thrive in, according to Jimmy Patronis, Florida Chief Financial Officer, told Fox News Digital earlier this month.
In the last year, we think it's more than $24 billion of new recurring wealth that has come to the state of Florida, whether it's small businesses or just couples. California lost $18 billion in recurring wealth in the past. That is a compound effect that drives down the cost of living for young families in our state.