The Markets Are Shifting

The headlines are swirling with information about rising interest rates, rising home prices, rising rent rates, and inflation that could make even the most financially secure buyers shy away from the market. Meanwhile, housing markets across the nation have started to cool. What does it all mean for you? Let’s break it down.

The Markets Are Shifting

A year ago, the news was all about how hot the housing market was and just how quickly homes were flying off the shelves, so to speak. Home prices rose roughly 19% last year and even still we find ourselves with a housing shortage.  On the other hand, markets across the US are starting to cool.  This means that while many home buyers may no longer be able to stay in the market, there is also a lot less competition for those that need to purchase a new home due to a job relocation, growing family, or a need to downsize.  Rising interest rates have had a huge impact on the state of the real estate market.

Rising Interest Rates and You

It’s all over the news and media that interest rates have risen significantly and are continuing to rise. This can have a major impact on anyone looking to borrow money right now. The bottom line for potential homebuyers is how this interest rate change can affect your purchasing power and monthly payment. The flip side of this is that there will be far less competition for the homes that are on the market. Those looking to purchase a home for investment or simply because they chose to move may be taking a step back, leaving more opportunities and fewer multiple offer situations for those that have a pressing need to buy a home in the near future.

Why It’s Still the Right Time to Buy a Home

With the housing market shifting and interest rates rising it seems like it would be a terrible time to buy a home. However, the opposite is true. Now is still a great time to buy a home. Why? Because home prices are still on track to increase as are interest rates. The longer you wait to purchase, the more you risk paying while getting less home for your money. If you’ve been considering buying or building your dream home, now is a great time.

What Does This Mean for Builders?

With the frenzy for new homes easing in many areas, what can builders and communities do to help increase traffic and reach more buyers? Hiring a great architectural photographer is a key step. With most home buyers starting their home search online, it’s more crucial than ever to have great photos and even virtual tours. This allows more potential buyers to experience your homes and communities. If you’re looking to improve your accessibility and online presence, contact us today.