The real estate market in 2017 was another banner year for both buyers and sellers in Deland, Deltona, Orange City and Debary. Interest rates have risen slightly; however, they remain at very affordable levels, continuing with the previous year’s ability to borrow money inexpensively. This continuation of cheap money has perpetuated the Seller’s Market that we have been experiencing, helping sellers to obtain an average asking price to selling price ratio of 98.8% for the year. Inventory remains low, with only 749 homes on the market in December 2017, which is down from 805 in December 2016. The combination of lower inventory and higher asking price to selling price ratios spurs competition amongst buyers, which leads to homes selling at an average of only 39 days on the market as opposed to 53 days on the market in December of 2016. Of course, this number includes all residential properties throughout these four cities, including those rare unmotivated sellers that languish on the market for hundreds of days or more! Typically, homes for sale under $250,000, when properly priced are selling in days, not weeks or months, with appraisals being a regular hurdle that all parties must address. All of these factors lead to higher median selling prices, ending in December at $170,000, up from $150,000 in December 2016.
For the last few years most “experts” suggested that interest rates would rise, and I believe this year is no different. As of January 18, 2018, Freddie Mac reports that the 30-year fixed-rate mortgage averaged 4.04 percent with an average .6 point, down from 4.09 percent at the same time last year. The real estate market is booming, and nobody knows when it will slow down. With the current pace of rising home prices, it cannot continue forever as we will eventually run out of affordable housing. Currently though, the market is favorable to both buyers and sellers with low interest rates and rising prices, when this will end is anyone’s guess.
If you 'd like more information on the current real estate market statistics and future trends, contact Chuck Shaver.
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