The NEW Real Estate Market
We have officially entered the era of higher (not high) interest rates. Rising interest rates combined with higher home prices are certain to impact many buyers, predominantly first-time home buyers. Here are some other changes we may witness:
1. Even all-cash clients will wonder whether higher rates will soften pricing. They may wish to "wait-and-see" or start placing more aggressive bids below asking.
2. While buying or renting a home may continue to become more expensive, incomes will rise, too, while employment is strong. Only if a recession hits could this shift.
3. Many will choose not to move & stay put either in a lower rental environment (where increases are more protected) or an owned home (knowing a replacement at a higher rate is not possible.)
4. The volume of sales may drop, fueled more by inventory shortages than by reduced affordability.