Explaining buyers’ behaviors as interest rates continue to rise.
What’s happening in the market now that we’re midway through the summer? In our previous blog posts, we’ve already explained how the increase in interest rates has caused a shift in our market, so today we’ll cover the ongoing trends that we have observed in inventory.
“Buyers are now more particular about property conditions compared to last year. ”
We are still in a seller’s market, and our inventory levels remain low. Some buyers have been looking for properties for an extended time, but many are frustrated because they have limited options. However, we’ve noticed a change in buyers’ attitudes when looking at homes. They’ve become much more particular about property conditions compared to four months ago when they would have been happy to take what they could get.
This may be the direct result of increasing interest rates and the climbing cost of purchasing a home. Prices haven’t declined yet, but rising interest rates have made homes more expensive. Many buyers are wary of potential repairs that could cost them in long term. Inspections are also becoming common, unlike a few months ago.
Another thing that we’d like to clarify is that from a historical perspective, our interest rates are still affordable. According to experts, interest rates may remain like this for a while, so it looks like this new market is here to stay. If you have other questions about the market or real estate concerns, don’t hesitate to call or email us. We’ll be happy to help!