A Potentially Costly Mistake to Avoid
Good Morning!
As I have mentioned previously, one thing that you can bet on is that things are not going to stay the same in the world of Real Estate for any long period. Our extended run of historically low mortgage interest rates could be close to ending. It now appears that the Fed will soon begin raising interest rates. This could indicate that the Fed is putting the steps into place which will eventually normalize interest rates in this country. How fast this all takes place is anybody's guess, but it has to happen and it now looks like this is the scenario that is rapidly approaching.
What does this mean for home buyers and home sellers? Our long run of low mortgage rates has heated up a Real Estate market that otherwise would have been flat. Low rates have kept buyers very active and this has created high demand, which in turn has created low inventories of homes from sale. This situation has lead to home price increases across the country. Higher mortgage interest rates will decrease buyer demand, allowing invetories to rise and this will in turn put pressure on home pricing. This will not happen over night, but it will happen. Also, remember that this country has struggled to fully recover from the recession and household incomes have not really increased in a long time. All of this points towards a much slower housing market in the months ahead. A market that may not be nearly as attractive to buyers and sellers as the one we are currently enjoying.
If you are considering a home purchase or a home sale, don't hold off. Don't wait for Spring. This could be a very costly mistake. Mortgage interest rates remain low at this time and buyer demand is high. For sellers, this may be the be time to sell your home that you will see for years. For buyers, home affordabilty may suffer when rates climb as well as your ability to qualify for financing. Don't wait, as I mentioned above, the current mortgage rate situation is about to change and we may never see mortgage rates back at the levels they are today.
If you would like some information on buying or selling a home in this market, get in touch. I would love to assist you. As always there is no obligation, just good, honest information that will help you make the right decision.
Have An Awesome Week!
THIS WEEKS HOT HOME LISTING!
2231 Sandy Drive
Price: $330,000 Beds: 3 Baths: 3 Sq Ft: 2720
In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
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