Broker’s Corner with Tanya Chappell June 2022
Happy First day of Summer!
At this writing it is the first day is Summer. However, we’ve already had days of 90+ degrees with a feels like factor of 105!!!! I bet this has some people questioning whether their move to hot sunny Florida was the right move! It’s only just begun guys!
I'm so thankful that we have a constant breeze that's 10 degrees cooler off the river. Being I consider my front deck to be my home office, that’s a big plus! I’ll admit some days I’m completely soaked with sweat just sitting there working away on my laptop all day. I know it’s crazy but I still can’t stand to be confined to a four wall office.
It’s kind of funny that’s it’s so hot here already. We were in Cancun last week and it was in the mid 80’s.
The real estate market is showing signs of normalizing. I wouldn’t say it’s cooling because that’s nowhere near the case. But after the looming threat and the subsequent increase in interest rates, I am starting to see price reductions coming through. That means it’s taking a little longer to sell property. Which means we will see the rate of appreciation slow down. Keep in mind the Gainesville regional area historic norm is around 6% and it increased as high as in the 20’s %. So, we have a way to go before I’d say the market is turning. I laugh about the concerns of “High” interest rates. Can’t you all remember when we thought 8% was good? We’re at about 5.5% now.
As the rate of appreciation declines and the average day on the market increases the market will start to normalize. In most states the supply will likely soon return to a more bearable amount but for the sunbelt states, I believe it will take longer. Covid, politics and taxes! It’s moved a lot of folks to the south.
The rental market has also seen major increases in rent prices due to these same factors combined with low inventory. We’re still
I’m getting around 10 applications or more for every medium to low price range property we list, and I don’t see that changing anytime soon.
Here in the Gainesville area, we are in what we call our “Turn Season” where we normally have a higher-than-average rate of property turnover (tenants vacating and new tenants moving in), and it feels a bit slower than usual. I think this is due in large part to the difficulty in finding affordable rentals. More tenants have stayed and renewed their lease instead of moving. I like it! It feels good to not be going 90 to nothing right now. It allows more time with the family.
We had a fantastic trip to Cancun this month. We often take the grandkids with us on vacation but this time the parents came too! Unfortunately, Jason Jr. had to stay behind at the last minute to help his mom (he’s such a good kid!) It was great to have the family there and the time flew by. We’re normally homesick and ready to get back at the end of vacation but it was sad to leave this time. This year we got to know several families that also own timeshares at our Resort- The Westin Laguna Mar and I look forward to us all going back again next year! I hope you enjoy the pictures and videos. Till next time, stay cool!
