Do Interest Rates Affect Our Market?

Are interest rates going to drop home prices? I hear this question every day, but the answer isn’t cut-and-dry. In a market where interest rates are predicted to continue rising, buyers and sellers are worried about what that could mean for their real estate plans. Here are four points that explain what’s happening in our market:

1. Mortgages are getting more expensive. This is pricing some home buyers out of the market.

2. Rent is going up. Many buyers who can’t afford to buy a house will be forced to rent.

"Our market isn’t crashing—it has just shifted."

3. There's a shortage of homes. The low supply will keep prices high.

4. The current market condition is about low inventory and high demand. Our market isn’t crashing—it has just shifted. It’s no longer about the bad lending practices like it was in the past.

If you have any questions about our market or real estate in general, give me a call or send me an email. I look forward to hearing from you.