The recent 3/4% rate hike is the largest increase in the last 28 years. And, according to Fed Chair Jerome Powell, another half point increase may be in the works next month.
So, what does that mean for the Real Estate Market? In the last few weeks, we have seen a slow down in the market. This rate increase may slow the market even further. The stats I am seeing agree. Showings are decreasing in every price range, which is creating a more favorable environment for buyers. This could be an opportunity for buyers to get that house this summer with less competition. If you are in the market to buy, let’s create a plan that gets you into your next home!
On the flip side, sellers are beginning to learn that the basics of pricing, presentation, marketing, and negotiation are becoming exceedingly important — once again — as more balance is starting to return to the market. As inventory has been increasing, the number of scheduled showings has been diminishing. These two trends point to fewer competing offers in the weeks and months to come. If you are in the market to sell your home, list now to take advantage of the peak of the selling season and catch the market at a place where you still have a little more leverage. Sellers may need to be more patient and flexible moving forward. As interest rates go up, we may see fewer multiple offer situations and bidding wars.
If you want more information on how this might impact you and your home buying and selling goals. Reach out to me and we an talk. You can also find me on Instagram @kathysmithepping