The average sale price for houses in the Sunshine State has steadily increased over the past few years, putting homeownership out of reach for many. Indeed, if you are in the market for a new home, you have probably been waiting for the real estate market to cool.
It can be difficult to predict the future of the housing market, especially for in-demand areas. Still, you can watch for certain indicators the market may be slowing. Here are three of them.
1. The number of closed sales
When the housing market is red hot, sales typically close quickly. This is because inventory drops even though there is no shortage of buyers. Consequently, a drop in the number of closed sales often means the market is cooling. According to the Florida Realtors Association, closed sales in the state have dropped roughly 13% in just one year.
2. The number of mortgage applications
Most homebuyers cannot pay in cash, forcing them to apply for mortgages. When the number of mortgage applications declines, the housing market is usually constricting. According to National Mortgage Professional, mortgage applications are currently at a 22-year low.
3. The number of available homes
When the housing market is sizzling, there tend to be fewer homes available for purchase. Because of supply-and-demand economics, shortages cause home prices to rise quickly. If you have noticed a greater number of for-sale signs in your neighborhood, there is a good chance home prices are on the verge of dropping.
Ultimately, because there are some clear signs the real estate market is cooling, now may be the time to begin the search for your dream home.