We’ll keep you informed about all the latest real estate news.
Lately, we feel like we’re in that Billy Joel song “We Didn’t Start the Fire.” The Russia/Ukraine war, inflation, a crazy housing market, increasing interest rates, and more; a lot is going on right now.
Buyers are feeling very tense because there’s such a lack of inventory. Thankfully, we’re starting to see more inventory, but there still isn’t enough to satisfy all the buyer demand. More importantly, all the buyers out there are trying to get into the housing market before interest rates rise. We heard over and over that rates will escalate soon, and it’s starting to happen.
We want to make it clear that if you’re waiting to buy a house until we have a huge market crash, we just don’t foresee that happening. If there’s a bit of an adjustment, which we do predict, keep in mind that your interest rate will be more important than a small market shift. Everything’s getting more expensive, and the challenge we’ll face is that as interest rates grow, buyers’ purchasing power will decline. Every time rates jump up, you’ll be able to buy less house but still have the same payments. The good old days when rates were 2% are gone, and we don’t see rates trending downward again.
The Federal Reserve has talked about this multiple times, but you don’t have to meticulously watch the news for it because we pay attention for you. We always want to let you know what’s happening so we can provide the best guidance. Things are changing constantly, but we’re on top of it, not just from a macro level with world news but also on a micro level with local news. How much inventory do we currently have in our local real estate market, what are offers looking like, are they coming in over or under asking price? We hope you’ll listen to our guidance because our job is to make sure that you get the best deal out there.
If you ever have questions about what’s going on with real estate or our local market, please reach out to us via phone or email. We would love to help you.