So many people are wondering “What now? The New Year home sales market does not look as promising as they had hoped. Since Covid started, the home market has taken off. It seemed like people were ready to engage the life changes that awaited them. Weather it was moving from an office to their home, changing careers, or needing to move closer to family we all were affected by covid in so many ways. Now we are in a completely different market! Right now the demand for homes is higher than the supply. Buyers want homes for less than what sellers want to sell them for.
Just a short time ago homes were selling for top value and buyers were giving it to them! What changed? The mortgage interest rates! Interest rates are DOUBLE what they were just a short time ago and now people need a home cheaper to be able to afford it. This probably has a major affect on why homes are not selling right now. The sellers want the same value on their home as home sellers were getting back in January 2021, and buyers want to afford the same size home they could have got back in January 2021! Guess what? IT IS NO LONGER JANUARY 2021!!!
Historically, Interest Rates are AVERAGE!
Going forward we need to remember that the interest rates today are not historically high. Back in October of 1981, interest rates were over 18%! Average rates for the 1981 year were over 17% So by comparison, the interest rates right now really aren’t that bad! Actually, today’s interest rates are average for the past 30 years. But we are spoiled! The good news is that the experts are saying that they believe that later this year we will see the interest trending down again.
Do not put off buying a home, instead maybe get creative. The mortgage can be refinanced when interest rates go down again. Also, maybe get another type of mortgage that would have the potential of paying a lower interest rate now and then later when the rates change to lock in a fixed lower rate. No matter if you are a buyer or a seller – just hold in there a little longer and things will change!
An Experienced Real Estate Agent Can Help!
The New Year home sales market brings on many new obstacles. An experienced real estate agent can help home sellers and home buyers in this market because they have been through the ups and downs of all sorts of different markets. As a 20+ year veteran, I help my clients understand today’s market and the best steps for them going forward. Give me a call if you would like to take about what the market has in store for you! Best wished to everyone to the New Year!