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Central Florida Buyers’ Bidding Wars Ease a Bit as Inflation Starts to Show its Face By Selective Realty Group
The central bank’s policymakers have said they’re A survey of Orlando realtors found a slow but prepared to accept inflation above its target to steady drop in the percentage of listings engaged make up for years of inflation below 2%. in a bidding war. In April, 74.1% of sellers entertained multiple bids; in May it dropped to 72.1%; Powell acknowledged Thursday that inflation is and in June, it fell to 66.2%. But other Florida cities currently well above 2%, adding “of course we’re like Sarasota tops the list of U.S. bidding-war cities not comfortable with that.” But he noted that unemployment also remains elevated at 5.9%, and at 87%. argued that the Fed doesn’t want to raise interest Orlando – While the U.S. remains in a strong sell- rates to counter what it sees as temporarily higher ers’ market, the buyer competition seems to be prices. easing a bit as home prices continue to rise. The Fed is also purchasing $120 billion a month in For anyone with concern as prices surge for ev- treasuries and mortgage-backed securities, which erything from food and gas to airplane tickets and are intended to keep longer-term interest rates low clothes, the message from Federal Reserve Chair to encourage borrowing and spending. The Fed Jerome Powell over two days of congressional has started discussing its timeframe for reducing hearings this week was straightforward: Just give those bond buys, Powell said and will continue to it more time and those price gains should slow, or do so at its next meeting in two weeks. even reverse. Some economists believe that the Fed will likely For anyone with concern as prices surge for ev- announce a reduction in those purchases as soon erything from food and gas to airplane tickets and as September, though others argue a November or clothes, the message from Federal Reserve Chair December announcement is more likely. Jerome Powell over two days of congressional hearings this week was straightforward: Just give “The first half of this year was red hot – it was alit more time and those price gains should slow, or most impossible to get an offer accepted. But recently, we’ve started to see buyers get cold feet,” even reverse. says Michael Vergantino, a Selective Realty Group For anyone with concern as prices surge for ev- agent. “Two of my buyers just had their offers acerything from food and gas to airplane tickets and cepted because the sellers’ first buyers backed out. clothes, the message from Federal Reserve Chair The market is still competitive, but buyers are more Jerome Powell over two days of congressional trepidatious than they were at the start of 2021 and hearings this past week was straightforward: Just less willing to pull out every stop in order to win.” give it more time and those price gains should Selective Realty Group agents report that more slow, or even reverse. buyers are starting to keep contingencies – a sign The Fed chair acknowledged that the U.S. is in the that competition is beginning to abate. midst of an unparalleled economic reopening on the heels of a pandemic-induced recession, mak- For a Free Buyer’s or Seller’s guide that includes ing it that much more difficult to anticipate how a comparable market analysis and/or buyer’s rethings like inflation and unemployment will play source guide for first-time home buyers, please do not hesitate to contact us today! out. “This particular inflation is just unique in history,” Info@SelectiveRealtyGroup.com Powell said Thursday before the Senate Banking, 407.627.1727 Housing and Urban Affairs Committee. “We don’t 3801 Avalon Park Blvd. East Ste. 229, Orlando, FL 32828 have another example of the last time we reopened a $20 trillion economy. We’re humble about what we understand.” Powell said inflation may slow “in six months or so,” suggesting a clear reading on inflation won’t come until the end of the year.
