Why You May Not Want to Wait to Buy Recent fluctuation in interest rates, coupled with inflation, has created some uncertainty among home buyers. Here are some key reasons you should
The market is changing… but what does that mean?
Dated: November 3 2022
You’ve probably seen recent headlines about rising interest rates as the Fed tries to stifle inflation. But what does that mean for buyers and sellers in today’s local real estate market?
Over the last several years, we’ve become accustomed to an extremely competitive real estate market with multiple-offer-situations, offers over asking price, buyers waiving inspections, and highest-and-best deadlines being the norm in every price range. The stress of high-pressure decision making among buyers, as they rushed to lock-in on the home of their dreams before their competitors snatched it up, was enough to make some buyers put their home search on hold in hopes for a cooler market in the future. Now, with increasing interest rates, a much needed leveling of the market is finally beginning.
While slightly less competition gives buyers some potential leverage, and possibly an opportunity to negotiate overall price and terms in some cases, interest rates are often eating up that savings on a monthly basis in increased mortgage payments. But you have options!… If you're a buyer hoping to take advantage of a little less competition in today’s market, stay in close communication with your loan officer and ask questions about how they can help you reduce your interest rate. Many lenders offer options to “buy down” your interest rate and refinance your mortgage later for free or at a reduced cost when interest rates decrease. Your loan officer is your best asset in determining what you can do to better position yourself financially throughout your home-buying journey.
Sellers are also taking note of recent changes. The amount of time sellers can expect between listing their home for sale and accepting an offer, commonly known as “days on market”, has slightly increased recently. According to Columbus Board of Realtors, the overall average days on market for September of 2022 was 18 as opposed to 14 days on market in September of 2021, but sellers who sold homes in September of 2022 saw an 11.5% increase in sales prices compared to January of 2022! Though sellers may need to be a little more patient as we settle into a changing market, that patience is likely to pay off when the right buyer comes along. If you’re considering selling your home, your Realtor® can help you determine what your home is worth in this market and help you create a marketing strategy that will get your home sold for the most money in the least amount of time.
The bottom line is, despite changing market conditions and media headlines, it is still a great time for buyers and sellers alike. Just make sure you align yourself with knowledgeable professionals who can help you navigate the real estate market and help you achieve your goals.
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