"Something has got to give on pricing"
In an article for Daily Commercial, Don Magruder, chief executive officer of Ro-Mac Lumber & Supply, Inc., explained why it might be a good time to sell amid a strong housing market.
Magruder said the housing market has remained resilient for the first quarter of 2022, with an annual seasonal rate of 1.8 million sold homes in March – 0.4% higher than February and 6.7% higher compared to the same period last year. He also pointed to “supply chain woes” for suppressing what potentially could have been more elevated numbers.
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In Florida, the average time it would take to sell a home has lowered from 64 days in 2021 to 53 days today. Magruder believes that Florida will remain one of the most robust markets in the country, but some price capitulations are expected.
With low interest rates out of the picture, Magruder said it is only a matter of time before prices start to fall, which is precisely why homeowners looking to sell should do so now.
“Here is the big but; do large amounts of money flow out of riskier investments on Wall Street and cryptocurrency to find a safe haven in real estate?” Magruder said. “That is a possibility as builders and investors build rental housing for a population which is dealing with a lack of housing.”
“Unlike some of the funny money investments on Wall Street, housing does provide one huge advantage as a tangible investment that delivers real value like a place to live and a nice tax advantage, plus there is a genuine need for more housing in America,” Magruder added.
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Whatever the case, Magruder said it is almost certain that housing will cool in some markets, resulting in eased supply chain disruptions across the country. Prices will moderate.
“If you are a home seller, the environment suggests you sell sooner rather than later,” he said.
