Here’s a closer look at the impact higher rates will have on our market.
I’m sure many of you have heard rumors that interest rates will rise in 2022. How will this affect the market? I’m giving you a closer look today.
When interest rates go up, buying power will go down. Buying power is the measure of how much home a buyer can actually qualify for. Higher rates will also reduce the number of buyers who are shopping in our market. This will start to balance out the market between buyers and sellers, and sellers will eventually lose the upper hand.
We’ll also have fewer refinances and more homeowners deciding to just stay put. Additionally, appreciation will likely fade back to a more normal rate. You can also expect lower demand, fewer offers, and higher days on market.
If you’ve considered selling your home in 2022, now is the absolute time to do so. You can take advantage of the current demand and buy your new home while rates are still low.
If you have any questions for us, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
