Here are four market factors every homeowner should know about.
Will rising interest rates cause home prices to drop? A lot of clients have asked me this question recently, and I understand where they’re coming from. Today I want to cover four factors affecting our real estate market to give you a better idea of what’s happening:
1. Rates are rising. As interest rates climb higher, more buyers will have to leave the market since they can no longer afford a home.
2. Rents are rising. In the old days, people could rent until they could afford to buy. Now, renting will usually cost you more money than buying a home.
3. Inventory is still scarce. This has been the case for a while, and things will likely stay this way for at least a few more years.
4. We’re not heading for a market crash. Our high prices are driven by low inventory, not the bad lending practices we saw in 2008.
You can still get a fantastic deal for your home, but you need to work with an expert. If you have questions about today’s topic or anything else, please call or email me. I am always willing to help.