Historically high inflation and mortgage rates doubling in less than one year. So why is the market not crashing? And why should we still be considering buying or selling a home in this environment?
For one, inventory is still low. Yet, the days of multiple offers seems to be waning.
If you are a seller, you have many ways to effectively market and sell your home for top dollar. One is to make sure your home is in top‑rate condition. Buyers are not interested in making repairs or remodeling. Secondly, be prepared to offer some considerations for items found during inspections. And lastly, offer paying down your buyer’s interest rate a point or so.
If you are a buyer, you are in a better position to find the right home for you and your family then anytime in the past two years. With multiple offer situations declining, you have more time to research all aspects of the home you are considering purchasing. Homes are staying on the market longer which gives you more choices.
Mortgage companies are offering buydown programs as well as discounted prices for future refinancing.
The inflationary environment and higher rates appear to be dampening demand though the lack of recent inventory is likely to cushion any major price dips. Few experts predict that home prices will fall substantially, even as the Fed raises short-term rates and sells off some of its balance sheet to bring inflation under control.
Real estate has always been most American’s best long-term investment, even during inflationary times. Upward pressure on prices means that longtime owners have recently seen a steep rise in the value of their assets. Also, mortgage payments do not change over time, but money paid back in the future is worth less. Inflation has also driven up rents.