It’s fair to say the market has cooled with high-interest rates putting off lots of buyers from the market highs of late 2021.
With mortgage rates going up and competition to secure a home in the Disney area less than it was before, the real winners in this 2022 market so far could arguably be cash buyers who are able to take advantage of the higher inventory levels.
What if I can show you a way of gaining some of the same purchasing power of a cash buyer only using a mortgage, that is favorable to you the buyer?
Fanny May predicts a drop of 1% in Mortgage rates in 2023. Rates are then predicted to further go lower again from this point as we see (hopefully) inflation come down.
In my opinion, by the time this happens, it is possible the power will have shifted back to sellers and we could see less inventory and higher home prices once again. Builder inventory remains almost non-existent and everything to be built seems to be getting further and further away from Disney.
Buying in a slower Disney area market when competition is lower has a lot of advantages. Sure, you may end up paying a higher interest rate than you might in 2023-2024, but will you save money overall by buying in 2022? What about being able to refinance that loan at lower rates down the line (-ask me! we have a great independent mortgage broker who can answer any questions you have)
So far in Q2-Q3 2022 we have seen:
- Motivated sellers – noticeable difference in seller responses and eagerness to accept our buyer’s offers
- More choice for location, style and size
- An opportunity to make an offer for a home that would have been laughed at 6 months ago – paying full listing price is NOT ‘the norm’ as we move into the middle and end of 22′.
- Less multiple offer situations – chances are we’ll be the only offer or one of just 2-3 offers on a home. The days of 10 offers for the same property seem to be behind us.
With a plan in place to purchase your investment home now with a view of refinancing your mortgage as rates drop can give a similar opportunity that cash buyers are now enjoying. The real estate market is slow, but the short-term rental market has still held momentum. Folks are still coming to Disney and need a place to stay.
If you would like to learn more about how much income Disney area Real Estate can produce please get in touch and I will be happy to show you the pros and cons of any home – and what realistic rental income expectations may look like.