ST. PETERSBURG, Fla. — Tampa Bay’s housing market is booming, and recent corrections in the stock market may not have much of an impact on the area’s real estate frenzy. That, according to three experts in the field interviewed by 10News on Monday, the same day the Dow dropped 2,000 points in reaction to the coronavirus outbreak and a collapse in oil markets.
With estimates showing close to 200 people moving to the Tampa Bay area every day, the area’s housing market is thriving. And record-low interest rates present opportunities for anyone looking to take advantage.
“As far as interest rates go, they’re at the lowest point in my 29 years. As far as, when you’re talking about the ten-year treasury, it’s at the lowest point in the history of the United States of America,” said Guaranteed Rate’s Michael Koopman. “It’s the best time in the history of our lifetime for someone to be able to get into their first home or their second home or maybe their forever home and be able to get in at the lowest interest rates that we’ll ever see.”
As rent in the area continues to rise, low-interest rates can give renters an opportunity to gain an asset while paying less per month than they do in rent.
“Now, at these levels, whether it’s a millennial, a first-time home buyer, or move-up buying they’re going to see much lower payments. And it’s something to run the numbers on compared to renting,” said Jason Hunter of Movement Mortgage. “Not to be so optimistic, people are really excited and talking about interest rates, saving money on a refinance, or I’ve had a number of clients call this morning that are thinking about buying because the rates are so low.”
For most homeowners, refinancing could also offer an opportunity to either pay their loan off faster or lower their monthly payments. Koopman says out of around $12 trillion worth of mortgages in place right now across the country, about $7 trillion can be refinanced.
“The good thing about real estate as far as being in Tampa Bay market and St. Pete: we’re like top ten most outperforming markets in the country. So many people are moving to Tampa Bay, so a lot of demand and low supply,” added RK Home Group Real Estate Consultant Rimo Kadous. “I always tell investors if you see your stocks are going down and you’re not getting the return, R.O.I., that you want, it’s a great time to invest in real estate.”
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