We hope that everyone stays safe as Tropical Storm Idalia, soon to be Hurricane, approaches us. We have attached a disaster supply checklist. We may be closed if the weather is severe.
We have still been seeing a gradual slowdown in the residential market. The cause is likely cost and interest rates. Interest rates have become a big factor in the cost of buying, more so than building supplies now. According to Florida Realtors, the inventory of single-family residences in Sumter County in July 2023 was 3.3 months, while the benchmark for a balanced market is 5.5 months. We believe there is still a lack of inventory of homes in the price range that the everyday person can afford to purchase. Florida Trend stated that fewer homes sold last month across Florida than in 2022, down 6.4% across the state, likely due to the state of mortgage rates. Florida Trend noted that another trending topic is that Ocala is ranked #1 city in Florida to have a housing crisis and real estate professionals have been weighing in on this rumor. They say the rising cost of mortgage and interest rates are making things less affordable for first time homes buyers and lower-income families.
We did some research on the vacant land sales in the tri-county area for the first half of 2023. From the data we pulled, it showed that in Q1 many vacant land sales were of large acreage, whereas Q2 consisted of smaller tracts. Our research stated that Q1 had a higher dollar volume than Q2. The commercial and vacant land market is continuing to rise and getting stronger. This is normal because the commercial and vacant land market lags behind the residential market by 12 to 18 months – and 12 to 18 months ago residential was still going strong.
Smith & Smith Realty will be closed on September 4, 2023 for Labor Day.
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We appreciate your business. We value your real estate needs and are honored to serve you.
Danny Smith, ALC, CCIM
Billie Faye Smith, Broker
Cassie Cribb, Realtor®
Lauren Vick, Realtor®