National, Florida Home Loan Market Reaches Buyer/Seller Equilibrium

In the market to obtain a Florida home loan? Or maybe you’re looking to sell and earn a profit? A recent survey by HouseHunt has news for those in either boat: you’re in luck!

HouseHunt’s latest quarterly poll shows that buyer/seller equilibrium has been achieved: 41 percent of member agents said the housing market favors more buyers than sellers; 40 percent said more sellers than buyers; and 19 percent reported a 50/50 balance. Combine these figures with recent positive Florida home loan rate news and individuals on either side of the market have something to look forward to.

Basis for a balanced real estate market

Need additional proof of a balanced national market between buyers and sellers? Take a look at numbers reported by the National Association of Realtors, which estimated a 6.5 month inventory of unsold homes in its May report. An inventory supply of 5.5 to 6.0 months is considered to be balanced.

HouseHunt’s second quarter national survey also found:

- Fifty-six percent of member agents said it is now taking, on average, more than 60 days from listing to Florida mortgage loan contract to sell a house. This is up from 55 percent in the first quarter and 35 percent a year ago. Only 15 percent of existing homes are selling in 30 days or less.

- Sixty-six percent of member agents reported that annual home price appreciation is now five percent or less; this is down from 8-10 percent a year ago. It’s positive news for buyers seeking affordable Florida home loans.

- The percentage of home sellers receiving 95 percent or more of asking prices is currently 68 percent, compared to 90 percent a year ago.

- First-time buyers still account for one of three home sales nationally. Repeat and move-up buyers are the most active in higher priced markets. Recent home price appreciation and rising mortgage interest rates has, on average, only a minimal negative effect on first-time buyers. Exceptions are marginal qualifiers.

“We welcome a balanced, more orderly marketplace for both the consumer and real estate professionals,” said Michael Bearden, president and CEO of HouseHunt, Inc. “Double-digit price appreciation is simply not sustainable for a multi-year period and will eventually drive away entry level buyers.”

Now, however, values are returning to more manageable levels and those from all walks of life can afford a Florida home loan.