Home prices are still high, and interest rates are rising, but we don’t need to freak out! It’s important to keep everything in PERSPECTIVE. When you do, you realize that you can STILL buy or sell, even if the market is changing!
What to say! Or point out! Let’s get people talking!
Most people are thing, “home prices and interest rates are up. I’m just going to wait it out until something cools off. Let’s talk about why if you want or need to move the next five years now is the time to make it happen.
While interest rates are going up, they are still trending average for the last two decades. Keeping this in perspective can help guide you through a decision that will likely last you at least the next five to ten years. Right now, interest rates were at Historic lows, although these rated have increased from what we have seen over the last few years, they are still low are likely to be here in the next several years. And, of course, you can always refinance when rates go down.
Because of years between 2008 – 2009, people associate the recession with massively decrease in prices. But remember that recession literally caused that mortgage-backed securities, so the housing market had to take a hit. This upcoming recession won’t be caused by that so we can’t expect the same outcome, the more likely outcome is that home prices will take a small hit to adjust to the market conditions, some may slowly rise, or they flatten out. But it’s not expected that we’ll see a massive decrease in housing prices, that price correction in pricing to reflect a truer market value.
If you’re renting your interest rate is 100% that’s right if you’re renting, you’re paying someone else’s mortgage principle in building someone else’s Equity. You won’t ever see that money coming back. So even if interest rates rise to 15 Percent (not expected), you will still be coming out of head the big way taken altogether Rising interest rates shouldn’t be a huge deterrent factor when it comes to buying a house especially if you’re currently renting. Plus, there are many programs available from Rent-to-own, builder incentives or down payment assistance programs!
And if you’re looking to sell, selling before rates rise to much could help keep the pool of buyers large, and allow you to net more for your home. That extra cash could potentially offset the rising rates you turn around to buy.
Obviously, each situation is completely unique and depends on several factors. So, reach out and let’s chat about your situation and I’ll help guide you to making right decisions. Talk to you soon!