Legal Professionals: Law Firm Marketing
Lawyers from our extensive network are ready to answer your question.
Posted on September 22, 2022 in Real Estate, Residential Real Estate
With mortgage rates surging past 6% this week, the cost of home ownership is becoming more out of reach for borrowers. Some borrowers are deciding to wait, hoping that prices and rates will fall as the overall market and inflation slows with it. Other home buyers, however, are opting for adjustable-rate mortgages, buying homes for lower payments now, and eventually refinancing when rates are better.
The average rate of a five-year adjustable-rate mortgage is 4.93% this week as opposed to the 6.02% average rate for a 30-year fixed loan, according to Freddie Mac. This time last year, mortgage rates were as low as 2.86%. Increased rates mean bigger monthly payments for home buyers. A monthly payment on a $300,000 30 year fixed home mortgage is $1,250 at 3% and about $1,800 at 6%—a 44% increase. As a result, many home buyers have to pay nearly $600 a month more for the same home if they choose a fixed mortgage.
Rising mortgage rates are only one factor slowing the real estate market. Other factors include low supply and high prices. As a result, housing affordability is at the lowest level since 1989 which, in turn, is indicative of the slowing South Florida housing market.
How does the real estate market effect the overall market?
There are so many effects of a housing market in flux. As more home buyers wait for either rates or pricing to decrease, the uncertainty has flowed into the greater market. How? More businesses overproduced in order to satiate the frenetic housing market during the past two years. These businesses, dependent upon home sales, include furniture manufacturers, home builders, interior designers, architects, appraisers, and the overall construction industry.
A recent article in the Wall Street Journal reported that Scotts Miracle-Gro, for instance, has gone from trying to supply consumers’ high demand for lawn seed, fertilizer, and other garden products for the past two years. During the outset of the pandemic and over the past year or so, most people were spending more time at home, doing home improvements. Scotts Miracle Gro could not keep up with the demand, so decided to ramp up production. However, with inflation and the housing market cooling, Scotts Miracle Gro overproduced and is now faced with huge lay-offs, and losses.
Bottom line is that consumer spending has shifted once again as the pandemic has eased and the economy has changed. The overall economy relies upon the housing market. As a result, with a slow-down in South Florida real estate due to mortgage rates and inflation, businesses that provide goods for homes are winding up with bloated inventory and/or huge losses.
What does this all mean?
As we have stated previously, the housing market is the process of a correction. Other industries that contribute to the overall real estate market are affected as well. With a housing slow-down, less consumer goods are being purchased, and less consumer demand for services are occurring and with that just maybe we will begin to see an unwinding process that will bring down inflation.
Oppenheim Law 2500 Weston Rd #209 Fort Lauderdale, FL 33331 954-384-6114 https://www.oppenheimlaw.com
Originally posted at: https://southfloridalawblog.com/the-effects-of-the-south-florida-housing-slowdown/
Member at firm Oppenheim Law
Business attorneys assist companies by providing legal services and advice with the operations of the company. This includes, but is not limited to, structuring the company, dealing with employment issues, preparing partnership and/or shareholder agreements, and ensuring that the company itself is in compliance with applicable business filings and regulations. Additionally, business attorneys assist companies ... Read more
If you lived or worked for at least 30 days at Camp Lejeune between 1953 and 1987 OR exposed prior to birth, please call now 954-384-6114 or fill out the form here: https://www.oppenheimlaw.com/camp-lejeune-lawyers/ to see if you qualify! Camp Lejeune Lawsuit: Decades of Toxic Water linked to Cancer and Severe Health Complications Since 1953, over ... Read more
Exactech Knee Lawsuit Attorneys, Knee replacement with an Optetrak, Optetrek Logic or Truliant Knee? Call 954-384-6114 Exactech is Knee-Deep in Lawsuits Founded in 1988, Exactech is a Gainesville medical technology company that makes joint replacement devices. Currently, Exactech’s knee and ankle replacements are wearing out faster than they should. Users have had to undergo avoidable ... Read more
Member at firm Oppenheim Law
Business attorneys assist companies by providing legal services and advice with the operations of the company. This includes, but is not limited to, structuring the company, dealing with employment issues, preparing partnership and/or shareholder agreements, and ensuring that the company itself is in compliance with applicable business filings and regulations. Additionally, business attorneys assist companies ... Read more
If you lived or worked for at least 30 days at Camp Lejeune between 1953 and 1987 OR exposed prior to birth, please call now 954-384-6114 or fill out the form here: https://www.oppenheimlaw.com/camp-lejeune-lawyers/ to see if you qualify! Camp Lejeune Lawsuit: Decades of Toxic Water linked to Cancer and Severe Health Complications Since 1953, over ... Read more
Exactech Knee Lawsuit Attorneys, Knee replacement with an Optetrak, Optetrek Logic or Truliant Knee? Call 954-384-6114 Exactech is Knee-Deep in Lawsuits Founded in 1988, Exactech is a Gainesville medical technology company that makes joint replacement devices. Currently, Exactech’s knee and ankle replacements are wearing out faster than they should. Users have had to undergo avoidable ... Read more
Copyright © 2022 MH Sub I, LLC dba Internet Brands. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or should be formed by use of the site. The attorney listings on the site are paid attorney advertisements. Your access of/to and use of this site is subject to additional Supplemental Terms.
Martindale-Hubbell® Client Review Ratings™ display reviews submitted by individuals who have either hired or consulted the lawyers or law firms.
The Client Review Rating score is determined through the aggregation of validated responses. People who submit reviews are either individuals who consulted with the lawyer/law firm or who hired the lawyer/law firm and want to share their experience of that lawyer or law firm with other potential clients. Reviewers can be anyone who consults or hires a lawyer including in-house counsel, corporate executives, small business owners, and private individuals.
Martindale-Hubbell validates that a reviewer is a person with a valid email address. As part of the review process, respondents must affirm that they have had an initial consultation, are currently a client or have been a client of the lawyer or law firm identified, although Martindale-Hubbell cannot confirm the lawyer/client relationship as it is often confidential. The content of the responses is entirely from reviewers.
Prior results do not guarantee a similar outcome and Martindale-Hubbell accepts no responsibility for the content or accuracy of any review. For more information on Martindale-Hubbell Client Review Ratings, please visit our Client Review Page
Martindale-Hubbell® Peer Review Ratings™ are the gold standard in attorney ratings, and have been for more than a century. These ratings indicate attorneys who are widely respected by their peers for their ethical standards and legal expertise in a specific area of practice.
The Martindale-Hubbell Peer Review Ratings process is the gold standard due to its objectivity and comprehensiveness. Lawyers solicited for peer reviews include both those selected by the attorney being reviewed and lawyers independently selected by Martindale-Hubbell. All reviewers are verified as attorneys through Martindale-Hubbell’s extensive attorney database. Only attorneys practicing at least three years and receiving a sufficient number of reviews from non-affiliated attorneys are eligible to receive a Rating.
What are the different Martindale-Hubbell Peer Review Ratings?*
• AV Preeminent®: The highest peer rating standard. This rating signifies that a large number of the lawyer’s peers rank him or her at the highest level of professional excellence for their legal knowledge, communication skills and ethical standards.
• Distinguished: An excellent rating for a lawyer with some experience. This rating indicates the attorney is widely respected by their peers for high professional achievement and ethical standards.
• Notable: This rating indicates that the lawyer has been recognized by a large number of their peers for strong ethical standards.
Lawyers who have received peer reviews after 2009 will display more detailed information, including practice areas, summary ratings, detailed numeric ratings and written feedback (if available). Details for individual reviews received before 2009 are not displayed.
Attorneys that receive reviews from their peers, but not a sufficient number to establish a Martindale-Hubbell Peer Review Rating, will have those reviews display on our websites.
For more information on Martindale-Hubbell Peer Review Ratings™, please visit our Ratings Page on Martindale.com and our Frequently Asked Questions
Ratings and reviews are feedback from people who have either consulted an attorney about an issue (but may not have hired the attorney) or people who hired an attorney as a current or former client and provided their feedback to our sister site, Avvo.com.