Buying YOUR DREAM HOME in St Petersburg, FL may be more achievable than you think in today’s market!

A few weeks ago we had the fortunate opportunity to meet with John Woloshin, CFA and lead Analyst of Global Wealth Management for UBS in their real estate sector. John Woloshin’s insights lead the UBS clientele in their strategies in real estate investments. Engel & Völkers Advisors have privileged access to this knowledge directly from the upper echelon of Industry Professionals working in those stratospheres of finance as we strive to Advise our clients with the highest level of expertise possible.

Woloshin predicted that we would continue seeing a rise in home values for the following 16-24 months, especially in Florida. He noted many leading indicators to a high-performing economy, such as retail/consumables and notably low-interest rates, which will fuel strong buying patterns. While roughly 35% of deals closing right now are cash, the lending practices of larger institutions are a testament to righting the errors of the previous bust/recession. Net equity of U.S. homeowners is at an all-time high(see chart below) and suggests the US population learned from past errors and not to over-leverage their homes into a high debt position.

So, what does this mean for you? Now is still a good time to buy or sell and/or invest in real estate. The dynamics of our market are shifting as more people continue to identify their changing needs this year. Some are turning to the luxury home sector for more space or a higher level of home finish and features. In their most recent Luxury Market Report, the Institute for Luxury Home Marketing (ILHM) shares:

“In a snapshot of 2020, despite the devastating effects of the coronavirus pandemic, the luxury real estate market has seen one of its strongest years since 2008. In comparison to experts’ predictions in early 2020, it is remarkable how significant demands for property type, location, and amenity preferences have changed amid the pandemic.”

With more need to work from home and a growing interest in having extra space for virtual schooling, working-out, or post-pandemic-found passions, the desire to own a home meeting these needs only continues to increase. Add-in, record-low loan rates allowing home buyers to aspire to higher price points or even expand their real estate portfolios, the luxury market is poised to grow. The ILHM report continues to say:

“Experts believe that the demand for exclusive residential properties outside the metro areas will continue well into 2021; even with the introduction of vaccines, the pandemic is far from over. Moving back to the city full time is unlikely for those who have moved to the suburbs and beyond, while the work from home trend remains. Many of these affluent homeowners are now making their secondary properties their primary residences for the foreseeable future.”

For those interested in buying a home this year, it appears that some higher-priced markets have more homes to choose from than those at lower price points. Javier Vivas, Director of Economic Research at realtor.com, notes:

“Interestingly, markets, where new supply is improving the fastest, tend to be higher priced than those that have yet to see improvement, suggesting sellers are more active in the more expensive markets.”

The bottom line is if you’re hoping to buy the home of your dreams, this could be the year to achieve that goal without delay & extra cost.

Connect with us today to explore your possibilities.