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Sugarloaf Key Real Estate Forecast
The Sugarloaf Key residential real estate forecast currently looks as though it will perform fairly strongly over the coming months.
By: Coldwell Banker Schmitt Real Estate Co.
Although, this current state of trends is likely to slow before the market goes into its annual buying and selling season next year. The Sugarloaf Key residential real estate forecast is a positive one at this time and early indications are that it will start to cool off through the rest of the year. Here are some of the most pertinent figures that give a snapshot of the residential real estate market in Sugarloaf Key at this time:
Currently, the median listing price in Sugarloaf Key is $1.3 million, with a median listing per square foot price is $908, and a median selling price of $1.2 million. These figures represent a 50.1% increase in a year-over-year comparison. Additionally, the sale-to-list price ratio stands at 98.05%, meaning homes are selling for just 1.95% under their asking price.
However, these statistics may ostensibly seem like it represents a seller's market. But, Sugarloaf Key is actually right in the middle of a balanced market. One clear indicator of this is the median days on the market, which now stand at 69 days, or just over two months. That is still pretty good, given comparable figures in other parts of the state, where the median days on the market are much longer.
Presently, there are a few factors that will likely cause a slowdown in the market in the area. First and foremost is property values rising so high. Second, inflationary pressure is weakening buyers' purchasing power. Third, the Federal Reserve will continue to raise interest rates, making it more expensive to borrow. Also, the ongoing labor shortage, the slow delivery of materials, and other contributing factors have slowed new construction, which puts more pressure on the resale market.
Although some of these factors will change in the following months, the continued hike in interest rates and the presence of inflation and historic eyes will undoubtedly have an impact on the local residential real estate market in Sugarloaf Key. However, the real estate market is indeed cyclical, and these possible events will prevent the market from overheating and/or forming a bubble - which will help to bring the market into a more normalized state.
For help or questions about selling or buying a property in the Lower Keys. Please call Diane at 305-849-0934 or see email@example.com