Here are two ways rising interest rates are affecting our market.
Now that we’re in April, what’s happening in our real estate market? Interest rates are increasing, and we’re starting to see the effects on housing. Today we want to discuss two ways rates are affecting our market:
1. Appraisals issues. These have been happening for a while, but they have gotten worse as interest rates increased. When an appraisal comes in below the agreed-upon price, the buyer will need a backup plan to come up with the difference. If you want to know what your options are in this situation, please reach out to us. We’d love to discuss the topic further.
2. Buying power decreases. As rates increase to combat inflation, the average buyer's affordability will go down. If you’re looking to sell, this means it’s time to put your foot on the pedal and get under contract. For buyers, our advice is the same thing. It may be worth it to pay extra now so that you can take advantage of our good rates.
If you have questions about today’s topic, please call or email us. We are always willing to help!