Navigating the Current Real Estate Market: 5 Hidden Opportunities for Homebuyers The real estate market over the past few years has been nothing short of extraordinary. The combination of historically low interest rates, a surge of migration to Florida, and limited housing inventory created a perfect storm that led to rapid home price appreciation. In my area of Southwest Florida, average home prices increased by over DRAMATICALLY in just 18 months! But the tides have now turned. Interest rates have risen dramatically to around 8%, inventory remains stubbornly low, and there is a general sense of uncertainty about where the housing market is headed next. Many prospective buyers have turned scared and cautious in light of these conditions. However, every market shift also brings with it new opportunities. Today, I want to share 5 “hidden” opportunities that I think homebuyers should consider leaning into during this transitional period in last 2023 and beyond: 1. Emerging Suburban Markets During the frenzy of the past few years, the most popular and supply-constrained markets like Lakewood Ranch saw massive inflation in prices. Many buyers started looking at more fringe suburban cities as a result. But right when places like Palmetto and Parrish started gaining traction, the market shifted again. This means some emerging suburbs still likely have room for growth and offer relative affordability compared to their mature counterparts. Beyond looking at fringe cities, also explore new communities being built in affluent areas to serve lower price points. For example, the Aurora community in Lakewood Ranch offers new construction homes capped at $350k. And in North Venice, numerous new neighborhoods cater to entry-level buyers. Getting in early with these emerging communities could mean sizable appreciation in the coming years. 2. Snowbird/Investment Properties For buyers able to pay cash or leverage equity from other markets, the volatility of the current market also presents opportunities. With over 500 price decreases in my MLS yesterday alone, bargains exist for investors able to act nimbly. And with inflation eating away at fixed income returns, snowbirds may be enticed to allocate more wealth to real estate. Targeting homes with flexibility like in-law suites or carriage houses can allow for rental income to offset costs. And focusing on turnkey properties versus those needing extensive renovations removes construction uncertainty. Evaluating deals based on historical norms versus recency bias is also key. The market may seem rough, but taking a long view can reveal value. 3. New Construction In any market, buyers will likely get the best concessions and incentives when purchasing new construction homes from builders. The business mindset focuses on volume and big picture ROI rather than emotion. And the competitive pressures between builders in dense areas like Sarasota force them to be creative and HUNGRY for deals. Today this edge is amplified by supply chain woes builders face. They need a steady stream of sales to lock in materials and labor pricing. Paying attention to communities in early development where demand is softest can lead to the best bargains. And over the long-term, buying new construction generally yields appreciation as neighborhoods mature. 4. Rent-to-Own or Mortgage Assumption Creative options like rent-to-own or mortgage assumption likely make more sense than ever in this market. As a buyer, you can lock in a purchase price at today's rates via a rent-to-own. This secures you from future rate increases. And for sellers, it delivers a guaranteed buyer. Mortgage assumption also allows buyers to inherit low legacy interest rates from sellers if executed properly. Ask listing agents if their clients have portable mortgages to uncover deals. 5. Flexibility on Terms Getting sellers to reduce price often means offering concessions on other fronts. Providing a quick closing, delayed occupancy period after closing, or flexibility on move-in timing allows desperate sellers to secure their next steps. And it gives you room to negotiate on purchase price. As opposed to overpaying purely for rate locks and avoiding contingencies, use term flexibility as a lever for the best deal. Changing Times Call for Savvy Buyers There’s no question the housing market has entered a new chapter. But uncertainty and difficulty for some breeds opportunity for others. By understanding where chances to capitalize exist in this cycle, buyers can still thrive. The key is tuning out the fearful herd mentality and objectively evaluating each situation based on your own needs. For anyone buying, selling, or investing in Florida real estate, I’m happy to have a completely open and honest conversation about what’s possible for you in today’s market. Feel free to explore my website for more insights and resources as well. I hope this blog gave you a few areas to consider as you move forward with your real estate goals. While parts of the market may dive, you still have ways to thrive!