What Rising Rates Mean for Home Buyers and Sellers
The FED rate hikes are taking a toll on the Real Estate market. Both in supply, and also in affordability.
As a result, some people are wondering if there is a slowdown in real estate listings. To answer this question, let’s look at some data:
According to the National Association of Realtors (NAR), the median existing-home sales price in the United States was $379,100 in January 2023, up 15.4% from January 2022. However, the number of existing homes sold in January 2023 was 5.7% lower than in January 2022.
This suggests that there may be a slight slowdown in the real estate market, but it is important to note that the number of homes sold is still at a historically high level.
Impact of Rising Rates on Real Estate Listings
Rising interest rates can have a negative impact on the real estate market in a few ways. First, it can make it more expensive to buy a home, which can lead to a decrease in demand. Second, it can make it more difficult for sellers to find qualified buyers.
However, it is important to note that rising interest rates are not the only factor that affects the real estate market. Other factors, such as the economy and job growth, can also play a role.
Is There a Slowdown in Real Estate Listings?
Based on the data, it is difficult to say definitively whether there is a slowdown in real estate listings. The number of homes sold in January 2023 was slightly lower than in January 2022, but it is still at a historically high level.
It is possible that the slowdown in the real estate market is due to rising interest rates, but it is also possible that it is due to other factors, such as the economy or job growth.
What to Expect in the Coming Months
It is difficult to predict what will happen to the real estate market in the coming months. However, if interest rates continue to rise, it is likely that there will be a further slowdown in the market.
Advice for Buyers and Sellers
If you are thinking about buying or selling a home, it is important to be aware of the potential impact of rising interest rates.
If you are a buyer, it is important to get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much you can afford to borrow and what your monthly payments will be.
If you are a seller, it is important to price your home competitively. You may also want to consider offering concessions to buyers, such as helping them with closing costs.
The impact of rising interest rates on the real estate market is still uncertain. However, it is important to be aware of the potential risks and to make informed decisions if you are thinking about buying or selling a home.
Thoughts:
In addition to the impact of rising interest rates, there are a few other factors that could affect the real estate market in the coming months.
One factor is the economy. If the economy slows down, it could lead to a decrease in demand for housing.
Another factor is job growth. If job growth slows down, it could make it more difficult for people to afford to buy a home.
It is important to note that the real estate market is cyclical. There will be times when the market is hot and times when it is slow. However, over the long term, the real estate market has always trended upwards.
If you are thinking about buying or selling a home, it is more important than ever to work with a qualified real estate agent. A good real estate agent can help you understand the market and make informed decisions.
