The late-summer housing market is giving buyers and sellers plenty to watch.
Three data points stand out this week, and together they point to a Southwest Florida housing market that continues to shift.
Here’s what the latest numbers may mean if you’re buying or selling a home in SWFL.
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CONTRACTS ARE FALLING THROUGH AT A NEAR-RECORD RATE
One of the clearest signals in today’s housing market is the rise in buyer cancellations.
According to recent Redfin data, 14% of home-sale contracts that were under agreement in July were canceled before reaching the closing table. That marks the highest seasonally adjusted cancellation rate in nearly three years.
Why are buyers walking away?
When buyers feel unsure about the price, condition of the home, interest rates, insurance costs, or their own finances, they may be more willing to cancel during an inspection or financing period.
Buyers also have more homes to choose from today. That can make it easier to walk away from one property and keep looking.
WHAT THIS MEANS FOR SWFL SELLERS
Pricing matters.
A home that sits too long or starts at an unrealistic price can face more risk when an offer finally comes in.
Today’s successful sellers tend to:
• Price the home correctly from the start
• Prepare and stage the property well
• Understand their competition
• Stay open to reasonable negotiations
• Work with buyers who have been properly qualified
Getting an offer is important. Getting that offer all the way to closing matters more.
WHAT THIS MEANS FOR SWFL BUYERS
Buyers have more negotiating power than they had during the hottest years of the market.
That does not mean every seller will negotiate or that every home is a bargain.
Some homes deserve strong offers because they are priced well and show well. Others may have been sitting on the market because of price, condition, location, insurance concerns, HOA issues, or other factors.
Knowing the difference can save a buyer time and money.
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FLORIDA HOMEOWNER EQUITY REMAINS STRONG — BUT IT IS DECLINING
A quarterly report from property data firm ATTOM found that 41.1% of mortgaged residential properties nationwide are considered “equity-rich.”
That means the remaining loan balance is less than 50% of the home’s estimated value.
That remains a strong number.
However, the percentage has now declined for four straight quarters and sits at its lowest level in nearly five years.
The trend matters.
WHAT THIS MEANS FOR SWFL HOMEOWNERS
Many Southwest Florida homeowners still have substantial equity in their homes.
That can give sellers options when they decide to move, downsize, relocate, or purchase another property.
But home values do not move in a straight line.
If selling has been on your mind, it can help to know three things:
• What your home may sell for today
• How much equity you may have
• How long similar homes are taking to sell
You do not need to sell simply because the market changes. But good information can help you make the decision on your own terms.
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FLORIDA’S PROPERTY TAX AMENDMENT COULD CHANGE HOMEOWNERSHIP COSTS
Florida buyers should also pay attention to a proposed property tax amendment headed to voters.
Florida’s attorney general recently rewrote the ballot language after a judge found parts of the original wording misleading. The proposal itself remains unchanged.
If approved, the amendment could change homestead exemptions beginning in 2027.
Property taxes make up an important part of the true cost of owning a Florida home, especially for buyers moving here from another state.
Buyers should look beyond the current owner’s tax bill when estimating future costs.
A home’s property taxes can change after a sale, and exemptions can also affect the amount an owner pays.
This is one of the reasons local knowledge matters when buying in Southwest Florida.
Insurance, flood zones, HOA fees, property taxes, special assessments, and community rules can all affect the true cost of owning a home.
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DON’T WAIT FOR THE FED TO “SAVE” YOU ON MORTGAGE RATES
Mortgage rates do not move directly with every Federal Reserve decision.
Rates respond to several factors, including Treasury yields, inflation, mortgage-backed securities, economic reports, and investor demand.
The Federal Reserve plays a role, but it does not directly set mortgage rates.
That matters for buyers who are waiting for a Fed rate cut before purchasing a home.
Mortgage rates can fall before the Fed makes a move. They can also stay flat or even rise after a Fed announcement.
Instead of trying to perfectly time interest rates, buyers may want to focus on the factors they can control:
• Monthly payment
• Down payment
• Cash reserves
• Home price
• Insurance
• Property taxes
• HOA or community fees
• Negotiated seller concessions
• The quality of the home being purchased
If the right home becomes available and the numbers work for your finances, waiting for the “perfect” rate may not always be the best strategy.
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THE BOTTOM LINE FOR SOUTHWEST FLORIDA
The SWFL housing market continues to give both buyers and sellers reasons to be thoughtful.
Buyers have more choices and more negotiating room.
Sellers can still benefit from strong home equity, but pricing and preparation matter more than they did during the peak market.
And both sides need to look beyond the sale price.
Insurance, taxes, HOA fees, flood zones, financing, inspections, and changing market conditions all play a part in a successful real estate decision.
That is where good local guidance can make a difference.
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READY TO TALK ABOUT YOUR SWFL REAL ESTATE PLANS?
Whether you want to know what your home could sell for today, when you should list, or what you can comfortably afford as a buyer, Myers Group FL can help you sort through the numbers and make a confident decision.
Myers Group FL
Luxury Real Estate, Simplified.
239-887-5044