How rising interest rates will affect you as a buyer or seller.
Today we want to explain how rising interest rates will affect you as a buyer or seller in this market.
If you want to buy a home, you’ll need to adjust your budget because rising rates will affect your buying power. Typically, you’ll be paying around $90 per month for every $10,000 that your potential home costs. As rates increase, you’ll either have to lower your expectations to stay within your budget or accept the reality of a higher payment.
If you’re selling your home now, you may have fewer people come through to see it. Inventory and pressure on pricing is increasing. We’re seeing an increase in inventory and more pressure on pricing because of these rising rates. Homes are also staying on the market about eight days longer on average. That’s not a significant change, but it’s important to be aware of it. We’re still in a seller’s market with only 0.5 months of inventory.
Buyers won’t have to compete as much with other offers in this market. If you’re a buyer, you might not have to come in 10% over the asking price or waive your due diligence period like you needed to for the past few years.
This makes pricing even more important. Sellers should make sure their homes are priced right. If they’re overpriced, homes will sit on the market and sale prices will drop. Your Colemere Realty associate is well trained to price your home correctly.
If you have questions about our rising rates, home pricing, or real estate in general, please call or email your Colemere Realty associate. We’d love to help you.