Is the St. Pete Spring Market a Buyer’s Trap or a Golden Opportunity?
The US is at war with Iran, inflation is forecast at over 4% for the year, gas prices are nearly $4 per gallon and the 30 year fixed rate mortgage just hit 6.4%. Here’s why it may be a great time to buy a house.
There are conflicting reports on the current state of the housing market, but the fact is that we have had 6 months of increasing sales and the number of new listings coming onto the market has decreased. The result has been upwards pressure on prices in Pinellas County. This has become a trend and and is expected to continue as we move towards a more normal and balanced market. The Spring market is supposed to be peak selling season, but given world events the Spring market will likely be delayed. I say delayed because the demand is still there and once we get into quieter times we should see that demand turn into buying and selling action.
The big question is do you sit on the sidelines, wait for calmer times and brave the rush that may be coming? Or do you take advantage of good inventory and a slow Spring season and leverage that to find what you want at the price you want? Sellers are still a mixed bag in terms of negotiating – some will give concessions, others are holding out and sitting on the market for an extended time. There are some great homes at great prices on the market right now, and competition for these may increase as we move through the year.
But Wait, What About Interest Rates?
The interest rate on a 30 year fixed rate mortgage is around 6.4% right now. BUT, the interst rate on an adjustable rate mortgage (ARM) fixed for 7 years is around 5.4%. This means the interest rate is fixed for the first 7 years and can change once per year thereafter. On a $400,000 loan the saving against the fixed rate for the first 7 years is just over $250 per month!
What Am I Missing?
The market is slow, inventory is good, interest rates can be navigated and we seem to be headed to a more balanced market than we’ve had for years. This may actually be a great time to buy.
My recommendation is buyers and sellers should do what is right for them at the time. Those that try to time the market and base actions on market factors alone typically don’t get what they want. For example in February 2026 we were expecting at least 2 interest rate cuts this year. What if a potential buyer had said “I’ll just wait for one of those rate cuts and then I’ll start my home search”? Now the 2 rate cuts are off the table and that buyer would be frustrated by the market not going the way they expected. Downsizing, upsizing, moving closer to family, or work, or the beach, or buying that downtown condo you’ve always wanted should drive decisions on when to buy or sell. Do what is right for you, when it’s right for you and don’t be afraid of the market!
What is New Port Richey Like?
Tim Wood Broker, Realtor
Austen Wood Realty
Tim@TimWoodRealtor.com
(727) 401-5997
I recently bacame an NAR certified Accredited Buyer’s Agent!! What does this mean for you?
