Are you planning on buying a home or selling your current one in Longboat Key? After much speculation from experts that
housing prices across the country could plunge, you might be wondering what this could mean for Longboat Key real estate and whether it will affect your housing goals. You might also wonder if you should go ahead and buy or sell or if you should wait and see. Read on to find out how the real estate market in Longboat Key is doing and how it is expected to perform well into 2023.
1. The real estate market in Longboat Key
Longboat Key is currently experiencing a balanced market that neither favors buyers nor sellers. However, it was not always a balanced market, having shifted from a strong and competitive seller’s one since 2021. One reason why the market has shifted is simply that it is not sustainable for the long term. Another reason is the increase in the federal mortgage interest rate to
7.32% for a 30-year mortgage combined with the rising inflation. All of these reasons have caused many buyers to be priced out of the market or even to adopt a wait-and-see approach.
Despite the market shifting, many homes are selling fast, with many selling
within thirty days as of November 2022, indicating that there is still increased demand for waterfront Longboat Key condos and majestic single-family estates. However, as many as
42% of homes were sold for less than the asking price month-to-date, meaning buyers have more purchasing power today. Even though homes are selling for less, home prices have
risen by 54% year-to-date, which aligns with the rising interest rates and inflation. If inflation continues to increase well into 2023, then prices will also likely increase. This will create a situation in which more buyers will get priced out, and there will be increased competition for real estate in the Longboat Key area.
2. Thriving economy and job market
Homes in Longboat Key are still selling fast. Part of that reason is that the job market has been thriving with a
nearly 3% yearly increase. Specifically, the industries that are particularly thriving are manufacturing, finance, science and technology, and education. Over the next ten years, the job market in Longboat Key is projected to grow by
42.2%, which will undoubtedly continue to attract more people to this beautiful island community. As long as the economy and job market continue to thrive and grow, more people will want to relocate to Longboat Key, thus driving up home prices and increasing desirability.
3. Potential for appreciation
Another thing you should consider when deciding if you wish to invest in Longboat Key real estate is how much the property has appreciated. Over the past twenty years, homes in Longboat Key have appreciated by
more than 200%, rising at an average of 5% annually. This indicates that homes in Longboat Key are likely to appreciate close to 5% in 2023. Furthermore, as long as the economy and job market continues to thrive, home values will increase.
You could also consider visiting the local City Hall to see what infrastructure is planned for the area. Usually, new constructions such as restaurants, shopping centers, and schools can contribute toward raising the home's value. Conversely, constructing a new power plant or landfill could decrease it. By checking City Hall, you can be better informed of what new developments are planned for the area to determine if the property would be an excellent investment.
4. What does this mean for sellers?
Since the real estate market in Longboat Key is currently a balanced market, it can be harder to navigate for sellers. As there will be some competition with many buyers interested, it would be advisable for sellers to curate a strategy to make their homes stand out. For example, consider getting your home inspected and then fixing any major repairs. When staging and marketing your property, be sure to highlight the home's best features. Whether that is the panoramic floor-to-ceiling oceanfront views or the private boating access, buyers will want to know that – and are likely to respond with an offer.
5. What does this mean for buyers?
Since buyers will face competition, they must be prepared to act fast. By getting pre-approved for financing and researching neighborhoods and homes, buyers will know with more certainty what area of Longboat Key would be an excellent fit for them. As a buyer, consider visiting open houses to get a feel for the different homes and neighborhoods. Once you find that Longboat Key home that feels perfect, you can work with your real estate agent to create an offer letter that sellers will likely accept. Since it is a balanced market, there will likely be fewer bidding wars, so you would have more negotiating and purchasing power. Find the home that aligns with your lifestyle, and then be prepared to act fast to make an offer on the home.
6. Consult an experienced Longboat Key realtor
The real estate market can be volatile and complicated, with many things to consider. That is why it can help to work with an expert who has experience buying and selling multiple luxury homes in the Longboat Key area. Whether you are planning on purchasing an investment property or selling your current one, you need an expert who can advise on everything from the best pricing and timing to marketing and negotiation strategies. Furthermore, a realtor has extensive market knowledge that they can use to help you efficiently navigate the home buying or selling process as smoothly as possible.
Interested in hearing more about the Longboat Key real estate market? Schedule a consultation with the realtors at the
Judy Kepecz-Hays Team. They can provide expert guidance on everything from the real estate market to innovative marketing and negotiation strategies. Judy and her team can turn your real estate dreams into reality!
