Are you currently renting but want to know how to buy your first home in today’s residential real estate market?
Buying a home is the largest lifetime purchase for most people. They want to get it right not only in terms of price but what they buy and where they buy it.
Many of us at ICI Homes have been there! Since we’ve built new custom Florida homes all over the state for more than four decades, we’re here with a three-part series on why buying your first home in today’s market is a smart decision.
The key? Adopting a long-term mindset. Thinking long-term motivates you to act rather than wait for the “perfect” time to buy, especially if you’re ready to leave renting in your rear-view mirror.
To do this, let’s examine today’s real estate market compared to how it appeared three years ago.
Look backward, then forward in the real estate market
The hot residential market during the COVID-19 pandemic and immediately post-pandemic (when interest rates dropped below 3 percent) was three years ago.
Those low rates helped many first-time buyers secure their new custom Florida home. However, there were plenty of simultaneous issues. Bidding wars, the lack of builder incentives, intense buyer competition, rising home prices and extended construction times were all problematic despite low-interest rates.
Meanwhile, rent prices rose along with home prices.
Fast-forward three years to the current residential real estate market.
As the U.S. Federal Reserve has battled inflation in a robust post-pandemic economy, one of its main tactics has been raising interest rates to cool major market sectors enflaming inflation. Mortgage interest rates have followed, reaching as high as 7.25 percent. At the same time, home prices have continued rising as the U.S deals with a long-term housing shortage.
Per the National Association of Realtors, the current U.S. housing shortage lurks between 5.5 and 6.8 million units. Builders like ICI Homes are working hard to close that gap, but it isn’t going away soon. As a result, bidding wars and buyer competition remain, while rents have continued increasing along with home prices.
Similar markets, both with rising demand for new homes.
Now is always the time to buy
Rather than rising home prices, mortgage rates, and ongoing inflation, let’s focus on buying opportunity — because it’s out there.
Earlier this year, U.S. Census Bureau statistics indicated new-home sales were up 24 percent year-over-year in June. The Florida housing market continues to thrive as the state remains a go-to destination for buyers attracted by its temperate year-round climate, outdoor lifestyle, and no state income tax. Plus, many builders now offer buyer incentives.
If you’re still paying rent in this real estate market and waiting for the “perfect time” to buy your first home, that’s now. The sooner you stop paying rent and pay yourself — by building equity in your first home — the sooner you’ll realize your homeownership dream.
Are you ready for your new custom Florida home? Reach out to ICI Homes here and explore your options.
P.S. – Don’t forget to ask us for more information on our preferred lenders and special incentives available in your area!