Hello everyone, welcome back to my real estate blog!
This
weekend I went to Blizzard Beach with some good friends and they
asked how the market is doing. As you know, interest rates have been
on the rise. So, I have my friend Bruce Woodburn from Summit Home
Mortgage with us today to help us understand more about the rising
rates.
Bruce:
Here’s what’s happening, interest rates went from the mid to high
3s to the mid to high 4s. They are even starting to push to the lower
5s. We are definitely seeing an increase in interest rates and that
has had some effect on a buyer’s power. Because of this, I wanted
to ask you how interest rates are affecting the transactions between
buyers and sellers.
Mark:
What I’m noticing is it has caused a lot of buyers who are on the
fence to jump off one way or another. The buyers who jump off and
purchase a home are fueling the already active market. So for sellers
it’s really great. Do you think it’s great for buyers?
Bruce:
Well, I’ll tell you something, we’ve had unrealistic rates. Even
with the increase we are still at historically low rates. People have
become spoiled. I think this is a huge buying opportunity. We are
going to continue to see interest rates rising, but it’s still a
buying opportunity. One of the dilemmas we are having, though, is the
buyers don’t have a lot of selection.
Mark:
This is true; we have a very low inventory. Typically, a normal
market has a six month supply of homes; we are currently experiencing
a 2.5 month inventory. What that means is prices have absolutely
stabilized and they are on the rise.
Bruce:
Are you seeing buyers being able to have a lot of negotiating power
and get a price below the listing price?
Mark:
We are seeing prices at listed and above and that is driving up that
market. I want to thank Bruce so much for helping us today. If you
want to learn more about what we have been talking about today you
can contact Bruce at 407.869.8830 x109 or you can contact me at
407.956.6165
Thanks
for watching!
