Stocks, storms and Southwest Florida: impacts on the housing market
There’s a lot of chaos in the air, especially for us Floridians. From a sudden stock market plunge in early August to Debby - a soaking tropical storm turned Category 1 hurricane - it’s been quite the recent wild ride, especially for those trying to buy or sell a home.
If you’re thinking about a home sale or purchase, try to keep the chaos on the outside and not let it come inside. Doing so will guarantee that you can have a sanctuary, or a place of peace, because home is so important. With recent events raging strong around us, what’s the expected impact on the housing market? And, more importantly, what should buyers and sellers do to make the most of these tricky situations?
Impact #1: Prime Time to Buy
One thing about Southwest Floridians - we know the ebbs and flows of real estate like the back of our hands. Many locals have lived here for decades and have experienced the real estate market at all stages and phases. As lifelong locals, we know that there are moments in Southwest Florida when you can get incredible deals, which don’t come often.
Right now, there are properties on the market that have never been there before. Why? Storms. Because of recent hurricanes and tropical storms, you can actually pick up historical, estate-style properties that you’ve never been able to touch before. Properties and homes that have remained within families for generations upon generations are now up for grabs, oftentimes due to the Florida weather and families choosing to move elsewhere.
From Lee to Charlotte to Collier, we have the most incredible opportunities and inventory that we’ve ever had. It’s incredible. With so many properties on the market, the possibilities are endless.
Impact #2: What about selling?
Just a few days before Debby blew through Lee County and the stock market took a dip, I had a conversation with a seller where they were trying to decide which plan of action was best: sell right now or wait a little bit longer?
When trying to sell your house, remember this: what comes down will come back up – sometimes faster than it went down in the first place. Think about when you bought your home – if you purchased it in 2017 and are selling it in 2024, you're going to make money. If you bought your home last year and are trying to sell it this year, you won't earn as much money. With that in mind, as well as uncertainty caused by recent events also factoring into the equation, it may be better to sit and wait if you can.
Impact #3: The Stock Market
In early August, the stock market saw its biggest single day drop in over two years, shaking consumer confidence and raising fears of a recession – though by week’s end, the markets had nearly fully recovered. Naturally, we should expect that development to have an impact on Southwest Florida real estate.
If anything, I think that this plunge will result in increased uncertainty among buyers and sellers, and both will become more cautious and adopt a wait-and-see approach. Also, this development could solidify Federal Reserve plans to cut interest rates at its next meeting in mid-September; analysts say that interest rates could be cut by half a point, rather than the expected quarter-point reduction.
If you’re an avid stock market investor who has reservations after the recent plunge, consider moving your money into a safer investment, like real estate, instead of stocks. Use that money to buy a rental property, Airbnb or second home.
When it comes to real estate, external factors can certainly impact the market in numerous ways, from available housing stock to mortgage rates, to buyer and seller behavior. Enlist the help of a real estate agent as you navigate these world challenges while finding a place to call home.
Need a trusted real estate agent? Contact Aprile Osborne, chief vision officer of Call it Closed International Realty, at 239-220-8607.
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