During the spring market interest rates were low and listings were selling in multiple offers. Then June came and everything shifted. Rates have been steadily climbing. This was not unexpected as they had been artificially held back and needed to adjust. Last fall we were looking at 3-4% interest rates, now we are in the 7% range. But honestly 7% is not high. My parents built their home in 1960 and their rate was 6%. I bought my first house in 1985 and my rate was 14%! Some people were paying even higher in the 80’s. Actually we are now in a more normal range than the 3-4% of the last few years.
The other change has been the number of new listings coming on the market. As home prices increased at high rates sellers realized that even though they would be able to make a good profit when selling, they were going to have a tough time finding a new home. Multiple offers, over market offer prices-many decided to stay where they are. So inventory has been lower.
Here is the good news – buyers get to make offers on homes without competition! They don’t have to overpay. They don’t have to forgo having an inspection. Sure there are some homes that still receive multiple offers but more are staying on the market longer. We get to negotiate again and it’s great! I for one am excited by this change. Working with buyers is fun again.
The market is forever changing. I am always available to talk about it and answer your questions. Call, text or email me anytime.