In 2022, is Davenport a buyer’s or seller’s market? Over the last few years, the real estate market has been quite hot and in favor of home sellers. The inventory has been low, and the available homes have been selling quite rapidly. Homebuyers needed to act quickly and increase their budgets in order to stay competitive for the homes they truly loved and wanted.
However, trends have been changing recently, and the market has been cooling in favor of home buyers.
In fact, according to the National Association of Realtors, pending home sales around the country dropped in the last few months. If the trend continues, which seems very likely, you may be needing to adjust your expectations for your real estate experience. Our realtors at Your Home Sold Guaranteed Realty – Laura Peterson Team are here to help you understand the specifics of the market and how they can affect you and your investments.
We’ll Tell You the Differences Between a Home Buyer’s Market and a Home Seller’s Market
The first thing that you need to know and understand is the difference between a buyer’s market and a seller’s market. It all comes down to a basic concept of economics: supply and demand. Depending on the circumstances of the area in which you live, supply and demand can vary, and this will be the determining factor when it comes to your ability to buy or sell a home successfully.
Home Buyer’s Market
When the real estate market is in favor of home buyers, the primary factor that determines this is the supply of homes in the area. If it is a home buyer’s market, that means the supply of homes outweighs the demand for them. With a surplus of homes, buyers will have their choice of what they consider the perfect house for their families and can usually get a great deal without going over their budgets or paying the full asking price of the home sellers.
Home Seller’s Market
Conversely, the opposite is true for a home seller’s market. In this case, the supply of homes is low but the demand for them is very high. This gives sellers the advantage, and they will often end up with multiple offers for their homes, all over the asking price.
Knowing the current state of the real estate market is critical for anyone thinking about buying or selling a home in Davenport, FL. You will need to know if you will be at an advantage when it comes to making an offer, negotiating, and closing the deal.
Is Davenport a Home Buyer’s or Home Seller’s Market?
With all of that valuable information about the basics of the real estate market in mind, we can now turn to the specifics of your region. Let us examine the question, is Davenport a buyer’s or seller’s market? According to the most recent data from Rocket Homes, Davenport, FL, is a seller’s market on the edge of a change.
Compared to October 2021, the price of homes sold in the area has increased 25.9%, but the time spent on the market has increased from 4 days to 26 days (a 452.1% increase). Homes have still been selling for under 30 days (68% of homes in the last month sold quickly) and the number of homes sold increased by 250%, but the number of available homes for sale has also increased 12.2%. Finally, 39.3% of homes sold under the seller’s asking price.
Although these numbers appear to be fairly scattered, the clearest interpretation is that the real estate market is starting to lean away from the home seller’s favor and heading toward home buyers. The change in the market is likely due to the rising interest rates and, especially, the mortgage rate hikes by the Fed. In the last few months, the Fed has pushed these rates to over 7% in an attempt to moderate the rising inflation.
Because of the increases in interest rates, home buyers have decided to prolong their investment opportunities in hopes of seeing the rates decrease back to a more reasonable level. This is putting home sellers at a disadvantage because homes are generally not selling as quickly as before or for the same high prices.
Start Your Real Estate Journey in Davenport, Florida, with Our Realtors
As a home seller or home buyer, it is important that you make sure the current real estate market is in your favor before you list your home or make an offer. With the current trends in the industry, right now is a great time for home sellers to maximize the profit on their investments but home buyers should also be paying close attention to those changes.
If you are ready to buy or sell a home in Champions Gate, FL, be sure to contact Your Home Sold Guaranteed Realty – Laura Peterson Team to get all of the details you need to start your real estate journey. Our realtors are here to make sure you are able to sell your home fast and get the highest possible price, and we can also ensure that home buyers are able to get the best price on the home of their dreams.
We are waiting to hear from you and are excited to assist you with everything that needs to be done to finish your real estate transaction. Call us at (407) 566-2555 to get started!