I am getting this question a lot right now. Real Estate went from being a seller’s market for the last two years to almost a sudden halt. Buyers are intimidated by the interest rates right now. Sellers feel stuck in their house, afraid to make a move, due to limited available houses. BUT let’s step back for a moment.
Are interest rates really that high? No, they really aren’t. Compared to what they were a couple years ago, sure they are higher. But, compared to what they were in the past 10 years they are in the middle range. It’s hard to know what interest rates will do but waiting for them to come down isn’t the best strategy. Here’s why….
- You may be waiting for a long time.
- If the interest rates go down, all the buyers who have been lying in the shadows will now become competition making it, once again, a seller’s market.
- An influx of buyers at the same time will drive the prices of the home back up. So, with the little the interest rates drop, you may find yourself with a very similar house payment due to having to purchase at a higher price.
- JUST REFINANCE if the rates drop! Buy now while it is a buyer’s market and refinance once or if the interest rates drop!
So, should a buyer wait to buy a house right now? No! Houses right now are being listed at a similar price point they have been. I really haven’t seen a decrease in price per square foot at the list price. However, I have been seeing buyers getting better deals once they put a contract on the house due to homes sitting on the market for longer. So, get out there, look at some houses and put some offers on the table!! Get some good deals right now!!