What's next?

I know we have all been holding on tight as we ride the emotional roller coaster of interest rates over the last few years, specifically when it comes to Real Estate. In the dynamic landscape of the real estate market, the fluctuating interest rates have presented us with a challenging journey. Particularly since the removal of our house speaker, we have witnessed a surge in rates, surpassing the 8% threshold for conventional loans.

Having the privilege of working on two sides of the real estate spectrum, I am able to glean the positive aspects amidst these high interest rates, even in the absence of immediate relief. Therefore, I offer the following advice to all participants in the current real estate market:

For prospective buyers:

Seize the opportunity to purchase a property. Anticipating a decrease in interest rates, it is prudent to act swiftly as the demand for housing is expected to rise, subsequently driving up prices. By purchasing a property now and refinancing when rates decrease, you will mitigate the risk of incurring additional expenses for the same property. Additionally, it is crucial to consider reassessing your priorities and expectations for your first home. While it may not align perfectly with your dream home, it can be a crucial first step towards attaining your dream home in the future.

For property owners:

If you are contemplating selling your property but notice a decline in market demand due to high interest rates discouraging potential buyers, consider the option of renting your home. These would-be buyers-turned-renters possess strong qualifications and are actively seeking housing. By renting out your property, you can allow them to contribute to the growth of your equity. It is important to note that in some instances, the rental income may not fully cover your mortgage, especially if you acquired the property in recent years at a price exceeding its appraised value. Nevertheless, there are still avenues to ensure a positive financial outcome, and real estate professionals are readily available to guide you through the process.

For renters:

To achieve financial stability as a renter, it is essential to consistently meet your rent obligations and adhere to the terms of your lease agreement. When searching for housing, prioritize property managers or landlords who offer positive credit reporting for timely rent payments. Simultaneously, focus on building your savings and improving your credit score. Collaborating with a local loan officer can provide valuable insights and assistance in charting a path towards homeownership.

Please note that these recommendations are intended to provide general guidance and it is advisable to consult with a qualified real estate professional to tailor the advice to your specific circumstances.