RISING INTEREST RATES

 

Rising Interest Rates – is this the key factor for a soon-to-be cooler housing market? For the first time in years, the housing market appears to be showing signs of cooling. Agents in our community are discussing fewer bidding wars, decreased showing activity, and even some price reductions. So could rising interest rates be the cause of the pause in the crazy real estate market?

Based on a recent article I read it is threefold: higher interest rates (5.29% 30 yr. fixed on 5/31), consumer concern about the state of the national economy and, the word we’ve all come to dread: inflation! Some buyers are shrinking back at the prospect of higher payments while in tandem paying $75+ to fill up their gas tank.

So what should we do about it? If you are selling a home, be aware of the situation and know your home may not receive multiple offers in 24 hours. Homes that are in good locations, priced correctly, and in move-in ready condition are still selling quickly and at significantly increased values compared to 3-5 years ago. If you’re buying a home, consider that interest rates, while higher than a year ago, are still very low in the mid 5% range, and they are likely not going to be going down any time soon! If you’re in it for the long run and not a quick flip, it’s still a great time to buy!

We love advising our clients, especially when there are changes to the housing market such as rising interest rates! If you have a choice to make, give us a call – we love talking real estate. And remember, our two real estate agents Matt Durand and Barbara Terzakos are Five Star Agents on Zillow and have over 70+ 5-star reviews on Google. Their goal is to truly serve each client well and to value long term client relationships. They definitely know their craft!