The long anticipation of an increase in interest rates has happened. What does that mean for home sales in the Willamette Valley? It means some people are freaking. Which is a natural response to change. But I don’t think we need to panic. Home sales are still strong but there is a shift in the tempo of the market.
Homes priced up to $400,000 are still getting multiple offers within the first week on market. This price range is so saturated with buyers, the increase in interest rates hasn’t reduced the buyer pool. This price range includes buyers that are purchasing their first home, downsizing or investing. A lot of these buyers can adjust their expectations in size, location and condition so that a purchase still makes sense.
The $450,000+ price range has seen a little bit of a slowdown in time for receiving acceptable offers. For the most part they are still getting asking price, however we are starting to see price reductions. This price range includes a lot of buyers that don’t have to move, so they are sitting back to see what the market does. Many own their home, so they can sit tight and watch the market before making a move.
Likely the interest rates will bump along until later in the year when there are predictions of a slight drop. Regardless, higher interest rates don’t necessarily mean a bad time to buy. There are many factors to determine if you should buy: How does a new payment compare to your current payment? What does it cost to buy down your rate? Is this the perfect forever home that you can refinance when the rates drop? Working with a good loan officer is so important. They can help you explore options so you make a decision that makes good sense for you.
Finances and goals vary from person to person. Some will find that they should wait to buy. But many will find that buying real estate is still a great investment.
Tanna Cable Real Estate Blog 