Vivante Monthly Review, 1st July, 2022.

There were only two closings in June, 9843 (1,698sf) sold at $482,000 and 9638 (1,485sf) sold for $372,000. There was only one new listing in June and that was 9026 (1,595sf), which is priced at $500,000. Activity has dropped away markedly. I only had a handful of showings on my three listings during the month and, despite some advertising, I have none yet booked in July. All the Boca listings have been reduced in price and two of the eight Bellas are lower too. The Fed’s interest rate hikes seem to be having a big effect – for example (and I hope my maths are correct!) – if your budget for a 30 year mortgage earlier this year was a monthly payment of $2,350, you could have supported borrowing $500,000 at 3.875%. Today, the rate is 5.875%; that same budget of $2,350 per month limits your funding to $397,000, a drop of over $100,000. The speed of the Fed’s actions has been somewhat surprising, but will certainly, for the time being, put a serious dampener on a buyer’s hopes to borrow at prior rate levels. Cash continues to be king!

Meanwhile Vivante looks beautiful – it’s a shame the snowbirds don’t see it when it’s watered naturally every day!