Here’s how rising rates will affect our housing market.
How will interest rates impact the real estate market? The simple answer is not as much as you might think. Rising rates may slow down some buyer demand, but our extreme inventory shortage will keep the market hot. Also, millennials are the largest population in the U.S. right now, and they’re just starting their real estate journeys. The combination of these factors means that we’re not in a housing bubble at all—it’s simply an issue of supply and demand.
As interest rates rise, some buyers may have to look in lower price ranges, but they still need to buy a home. Don’t expect to see prices drop anytime soon. The incredible growth rate we’ve seen over the last couple of years may slow down a little, but values will continue to increase.
If you’re a buyer, now is the time to jump into the market so you can lock in a low rate before they get any higher. If you’re a seller, you should also list your home sooner rather than later so that you can maximize the value of your house since as interest rates and home prices rise, fewer buyers will be able to afford your property.
If you have any questions about buying, selling, or the market in general, don’t hesitate to reach out to us by phone or email. We’d love to help you.