As quarter 2 comes to a close, we can now take a look at how the luxury real estate market fared from April 1st to June 30th. Join us as we take a deep dive into what happened this last quarter and how that may affect the luxury real estate market in quarter 3:
Luxury home demand is still high
The luxury real estate market continues to boom in Naples! This is excellent news for homeowners looking to sell, however, it’s not a bad time to buy either. That’s because demand for housing is unlikely to go down anytime soon in Southwest Florida and, as we’ll discuss more in-depth later, interest rates may remain fairly flat for the next quarter.
Luxury real estate supply is still catching up with demand
More luxury real estate construction projects are popping up throughout Southwest Florida, however, there is still a long road ahead for supply to catch up with demand. Southwest Florida is one of the most sought-after luxury home markets in the U.S. so it may come as no surprise that houses are being sold quicker than they can be built. However, Zillow senior economist Nicole Bachaud pointed out that “with renewed energy running through the spring housing market, hopefully, home building activity will continue on an upward trajectory to add vital inventory when it’s needed the most.” She also added that home builder sentiment was positive in April for the first time in nearly a year.
Interest rates are no longer rising
The Federal Reserve paused interest rate hikes in mid-June. While the Federal Reserve doesn’t set mortgage rates, pausing federal interest rate hikes can indirectly affect mortgage rates. This means this next quarter may be a good time for those interested in luxury real estate to buy — before federal interest rates or mortgage interest rates potentially rise again.
Preparing for Quarter 3
As quarter 3 begins, local real estate agent Annie Hagstrom is keeping well apprised of the latest goings on in the market. For the latest information, data, and predictions for the luxury real estate market in 2023, reach out to Annie Hagstrom. She’d be happy to share her thoughts and provide you with a more in-depth outlook of Southwest Florida’s real estate future.