How rising interest rates are affecting our real estate market.

Many of you know that interest rates have gone up dramatically in the past few months. People have been asking us how they will affect our market, so we want to answer that question for you today.

On the buyer’s side of real estate, we’re starting to see some breathing room because of these higher rates. Before, you were lucky if a listing agent called you back when you wanted to write an offer. Now, we have agents calling us for feedback on a listing we went to over the weekend. That leads us to believe they’re receiving fewer offers. 

“Now is a great opportunity to buy if you’ve been frustrated with this market. ”

We also see some homes that don’t sell over their first weekend on the market. If the houses are priced right and in good condition, they’ll still sell quickly. However, homes that need some work, are more unique, or may be a bit overpriced are sitting longer on the market. 

Don’t confuse this change in behavior with our market going down. Our increasing interest rates will naturally reduce the size of the buying pool. If you want to keep waiting to buy, don’t. Rates are still increasing rapidly, and home prices are also appreciating. You need to buy sooner rather than later, especially if you’re looking for an affordable monthly payment. 

Rising interest rates decrease affordability, but the supply of homes is another important factor driving our market. Our inventory is still very low. Now is a great opportunity to buy if you’ve been frustrated with this market. 

If you’ve been thinking about buying or selling, please call or email us. We’d love to hear from you.