[Aces4]

Originally Posted by Philipd411

The mortgage interest rates are double the amount of what they were when I bought my home. When interest rates go down, home sales will go up.

Most people don't realize the correlation between "free money" and inflation.

[Pat2015]

Originally Posted by Philipd411

The mortgage interest rates are double the amount of what they were when I bought my home. When interest rates go down, home sales will go up.

My last mortgage in 2020 was 2.5%. A far cry from today’s rates which significantly affects your ability to buy a house. Also, think about how much more house you could have been purchased back then vs now. A drop in rates could definitely spur an uptick in sales around the whole country.

[Aces4]

Originally Posted by Pat2015

My last mortgage in 2020 was 2.5%. A far cry from today’s rates which significantly affects your ability to buy a house. Also, think about how much more house you could have been purchased back then vs now. A drop in rates could definitely spur an uptick in sales around the whole country.

Why not examine the price of homes then and now vs the artificially low interest rates that cause inflation?

[Bill14564]

Originally Posted by Aces4

Why not examine the price of homes then and now vs the artificially low interest rates that cause inflation?

Right.

I think my first mortgage was around 10% and the second was near 7%. Homes were much more affordable then.

Low rates -> easy purchasing -> more buyers -> higher demand-> inflated prices

Higher rates now -> more difficult purchasing -> fewer buyers -> less demand -> lowering prices

Maybe the higher rates will bring home prices back down to where families can afford them.

[Aces4]

Originally Posted by Bill14564

Right.

I think my first mortgage was around 10% and the second was near 7%. Homes were much more affordable then.

Low rates -> easy purchasing -> more buyers -> higher demand-> inflated prices

Higher rates now -> more difficult purchasing -> fewer buyers -> less demand -> lowering prices

Maybe the higher rates will bring home prices back down to where families can afford them.

I agree. Also it may lower the price of vehicles as I heard today that the average price of a new vehicle is about $50,000.

[MSchad]

May be a 7% increase in homes for sale. But is that an actual increase in the % homes for sale vs total housing/population since that has increased also. One has to expect a certain percentage of population upgrading, downsizing along with new inventory for growth.

[thelegges]

Is there a comparison of roof tops to % of “for sale” per year?

[Kelevision]

Canadians are listing their US properties in droves. Canadians made up nearly one-quarter of foreign sellers in Florida between April 2023 and March 2024 versus 11 per cent in the same period a year earlier, according to a National Realtors Association report.

[Bill14564]

Originally Posted by Kelevision

Canadians are listing their US properties in droves. Canadians made up nearly one-quarter of foreign sellers in Florida between April 2023 and March 2024 versus 11 per cent in the same period a year earlier, according to a National Realtors Association report.

Note that that is last year's data. It would be interesting to see what the stats are for this year but that will likely take a few more months.

Statistics though....
Canadian sales would all be second homes. With insurance rates skyrocketing here it could be that maintaining a second home in FL has become too costly. Owners of primary homes may be more reluctant to sell since they would then have to purchase a new primary residence at a higher mortgage rate. While the number of Canadian sellers likely increased, I wonder if this statistic wasn't also affected by the number of American sellers decreasing.

[Normal]

Originally Posted by Kelevision

Canadians are listing their US properties in droves. Canadians made up nearly one-quarter of foreign sellers in Florida between April 2023 and March 2024 versus 11 per cent in the same period a year earlier, according to a National Realtors Association report.

The Canadian Dollar is becoming worthless. While most American buyers mortgage in US dollars, there is an exchange issue for our friends up north. They borrow from a US bank, they pay back in US dollars. If the exchange rate tanks, they could take huge hits financially. The US dollar costs about 1.44 right now? Eeek! Imagine the fall out with the current tariff issues. The Canadian dollar has fallen 8% in valuation over the past year.

[Topspinmo]

Originally Posted by Aces4

I agree. Also it may lower the price of vehicles as I heard today that the average price of a new vehicle is about $50,000.

IMO that’s not going happen.

[Topspinmo]

Originally Posted by Normal

The Canadian Dollar is becoming worthless. While most American buyers mortgage in US dollars, there is an exchange issue for our friends up north. They borrow from a US bank, they pay back in US dollars. If the exchange rate tanks, they could take huge hits financially. The US dollar costs about 1.44 right now? Eeek! Imagine the fall out with the current tariff issues. The Canadian dollar has fallen 8% in valuation over the past year.

IMO Only the poor suffer, rich have loopholes where they’re going to make money regardless.

[Topspinmo]

Originally Posted by Markus

If you were to take the CEOs pay down to $1 a year and spread out that pay in lower premiums across all policy holders it would amount to only a few dollars. That is not the problem at all.

Agree but, management pay and bonuses across board, I never seen poor insurance salesman, but I don’t mingle in that group.

[Rainger99]

Originally Posted by Normal

I’m wondering when the state of Florida is going to do something about insurance costs and property taxes? Two items they can work on but seem to have no interest in accomplishing? We just get more hot air from Tallahassee about what could be, but nothing is done.

What would you do if you were in the legislature to reduce insurance costs? They could probably adjust property taxes but that would probably require other taxes such as sales tax to go up or they might institute a state income tax.

[Aces4]

Originally Posted by Topspinmo

IMO that’s not going happen.

It's happened.. Per AI: As of March 11, 2025, the average cost of a new car in the US is around $48,401.