To our South Florida Friends…
In the BHHS EWM Q1 2021 Insight Report, we’ve included not only separate reports by property value segments for single-family homes and condos in Miami-Dade & Broward, but we’ve also included reports on some of our larger cities. The data comparisons cover the first 74 days of 2020 & 2021 (through March 15th), so the information is very timely!
There is also other good information showing population changes across the country, as well as the highest marginal state personal income tax rates.
The flyer showing the Effect of Interest Rates on Borrowing Power is of equal concern to Buyers & Sellers. We normally don’t think of Sellers being affected by increasing rates, but as this graph shows, Buyers who are purchasing at the top of what they can afford will have to lower the value of their home search if rates begin to rise. The Buyer’s inability to spend the same amount after an increase in mortgage rates will directly impact the number of Buyers available in each price category.
There is some concern that rates will continue to increase, as they have slightly since the first of the year. This flyer makes it easy to see how a Buyer’s borrowing power erodes by over 11% when the rate increases by just 1%. Small increases in the interest rate can take large bites out of the cash available to purchase.
Ron Shuffield, President & CEO
Berkshire Hathaway HomeServices EWM Realty