Housing fallout leading to better deals for some future homeowners

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Housing fallout leading to better deals for some future homeowners
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A local real estate agent says new home prices are dropping and it’s because of the ripple effect from COVID-19 and supply chain issues.

The Sky 4 Drone shows a bird's-eye view of one of many new housing developments in Northeast Florida. This one is in St. Johns County.–

Jonathan Daugherty, a realtor in St. Johns County, said housing fallout is leading to better deals for some future homeowners. Future homeowners who qualified for a mortgage at 3% may not qualify for a 6% rate, but their home is already built, so after the fallout from the deal, builders are trying to sell homes for thousands of dollars cheaper.

“Now interest rates have gone up to 7%,” Daugherty said. “So now that 12-16 months later, after they’ve done the contract, the houses are now being finished and the lenders are coming back and saying, ‘Well, that 3% is now 6 ½-7%.’ And now the payment is $1,500-2,000 more than what they originally thought it was.”

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