I am hearing so many of the media outlets talking about prices “crashing” because of rising interest rates. It has caused fear for many. Real Estate is local. You have to look at each market to decide if interest rate is going to be a factor in your market.
I have caught a person literally using data they twisted from Zillow to try to infuse fear on the market to advance their agenda at a council meeting. They do not have any Real Estate background whatsoever.
What does a higher interest rate really mean? A higher interest rate also means your buying power is less. It does not mean a seller has to reduce his/her price.
You will be able to write off the interest portion of your payment on your taxes.
Higher interest rates mean the banks will be paying you more on your savings account.
What drives prices mostly is supply and demand. In our area, our supply is low and many people do want to live here.
We are approximately 70000 less in our inventory than last year this time. We also have a Chip plant nearby that has 80,000 jobs opening up. At this time, I see no reason for any of us to be listening to fear mongering because of a possible 10% interest rate. Not to mention that a high percentage of our buyers in this area are cash and interest rates really do not matter to them.
My crystal ball doesn’t show rates coming down any time soon. If you need to borrow to buy a home, just buy it and you can always refinance if and when the rates come down.
