Welcome to Connie Mahan Real Estate Group

Welcome to Connie Mahan Real Estate Group - your source for Sumter County real estate. 

In addition to specializing in Sumter County, we also service Lake, Pasco, Hernando, Citrus, and Marion counties.

As a full service real estate brokerage firm we work side by side with sellers, buyers, investors, and builders in residential, commercial, vacant land, and property management.

If you own real estate that you're thinking of selling, we would be happy to provide you with a FREE Comparative Market Analysis.

In today's competitive real estate market, timing is everything. Many good properties are sold before they are ever advertised. Beat other buyers to the hottest new listings for sale in Sumter and the surrounding counties with our New Listings Notification

Please browse our website for listings, reports and important local real estate information.

Keeping you updated on the market!

For the week of 

July 6, 2015

Market Recap

Job Report Puts Rate Hike on Hold

It looks like September is off the table. Last week, Federal Reserve Governor Jerome Powell speculated that September might bring the first increase in the federal funds rate since 2006. That appears unlikely. Indeed, most Wall Street traders point to December as the “new” earliest date for a rate increase.

Though only one month's worth of data, the June employment report is a contributing factor to the push back. On the surface, everything appears sound. The economy created another 223,000 jobs. It's always good news when the economy creates 200,000+ new jobs a month. It's also good news when the unemployment rate falls, as it did last month. The unemployment rate dropped to 5.3% from 5.4%.

When you did a little deeper, though, you find the news is somewhat less cheery. Average hourly earnings continue to stagnate. For the month, the average rate was $24.95, the same as in May. Year over year, wages are up 2%. This is on par with annual wage growth since the recession ended five years ago. During a recovery, wages usually grow at a much strong rate.

As for the unemployment rate, it's somewhat misleading. Fewer people are in the workforce. The participation rate – the share of working-age people wanting to work – decreased to 62.6% in June, the lowest since October 1977. To be sure, aging baby boomers are leaving the workforce, but there is also a swell of working-age people who've left the workforce out of frustration.

When you take a lackluster jobs report and add to it the events in Greece, December becomes the odds-on choice for a fed funds rate increase. (We still think 2016 is more likely.) That said, the fed funds rate mostly influences short-term rates. Credit-market participants have taken over long-term rates, and they are on the rise.

With everything going on with Greece (namely Greece's inability to meet its debt obligations and its possible expulsion from the European Union), U.S. Treasury rates would normally fall. Investors faced with heightened uncertainty usually pour into U.S. Treasury debt. That hasn't been the case this go-around. The yield on the 10-year Treasury note continues to hold near 2.4%. Because the 10-year note influences mortgage rates, the 30- and 15-year fixed-rate loans continue to hold near 2015 highs.

Fortunately, higher long-term lending rates haven't taking any steam out of housing. Momentum remains strong. The Pending Home Sales Index was up 0.9% for May, which beat most estimates. The latest increase pushes the index up to 112.6, the highest it's been since 2006.

The prospect of even more home sales in the face of higher lending rate is testament to the underlying strength in housing. We expect strength to be maintained into early autumn, and likely beyond.

More Signs of Market Strength

All-cash buyers continue to retreat into the background. RealtyTrac reports that all-cash purchases dropped to 24.6% of all single-family and condo sales in May. This is down from 28.5% in April. As recently as February 2011, all-cash purchases accounted for over 42% of all sales.

A normal, stable home market is driven by owner-occupied buyers. An owner-occupied market is a market where buyers look to a house as a home, not as a profit center. Stability and predictability rein in such a market.

Stability and predictability extend to price appreciation, which should return to a normalized historical rate in more markets. Normalized price appreciation, in turn, should generate more inventory, particularly for young and first-time buyers. Most investment properties are taken from starter-home inventory. The trend to more owner-occupied buyers is good news for young people entering the market.

We're not disparaging investment buyers. They were vital to the recovery. Without someone – mostly investors – to halt the slide, we'd be a few years behind in the progress we've made to date. That said, normalcy needs to eventually take over to sustain the market. Fortunately, normalcy has taken over in 2015.

If you have any questions on the local market in your area or would like to discuss your next real estate step, don't hesitate to contact us.

We can schedule a "no strings attached" appointment to fully review your options in this market.  We have an action plan for you!

My team and I are diligent in our efforts and prove it with our results!

Don't wait, call or email today.
We look forward to hearing from you.


Connie Mahan
Connie Mahan Real Estate Group Inc.
352-457-7553  Direct
352-569-0233   Office
866-819-0089  Toll-free fax


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Connie Mahan 218 N Florida St
Suite 1
Bushnell, FL 33513 Email Connie