Homebuyers... You Can Come Back Outsude!
By Quantella Simmons-Kinard posted December 16, 2021
The Market is SHIFTING!
LET'S FACE IT - MARCH 2020 WAS A START TO SOME VERY TOUGH TIMES! STIMULUS CHECKS AND LOWER INTEREST RATES WERE MEANT TO HELP TO KEEP THE ECONOMY MOVING.....
AND MOVE IT DID... REAL ESTATE INVENTORY COULD NOT KEEP UP WITH THE DEMAND. AND ALONG CAM THE HOUSING "CRISIS" OF 2021 AND SOME OF 2022...
BUYERS HAD TO DEAL WITH MULTIPLE OFFERS, ALL CASH NO CONTINGENCIES, NO CLOSING COST, AND AS MUCH AS 20% OR MORE OVER ASKING PRICE. IT WAS DISCOURAGING AND MADE OWNERSHIP SEEM ALMOST IMPOSSIBLE FOR SOME.
NOW WE ARE HEADED TOWARDS THE END OF THE 4TH QUARTER OF 2022 AND THE MARKET IS FINALLY SLOWING DOWN AND STABILIZING.
WHAT CAUSED THE MARKET TO SLOW DOWN ONE MAY ASK?
HIGHER INTEREST RATES!
BUT DON'T FEAR ALTHOUGH INTEREST RATES ARE HIGHER THAN THE HISTORICAL LOWS WE SAW LAST YEAR- THEY ARE STILL NOT HISTORICALLY HIGH!
CHECK OUT THIS TABLE OF A 30 YEAR HISTORY OF INTEREST RATES
For some perspective on today's mortgage interest rates, here's how average 30-year rates have changed from year to year over the past five decades.
Source: Freddie Mac
FEEL BETTER YET?
WE UNDERSTAND IF YOU DON'T! THAT'S WHY IT'S SO IMPORTANT TO HAVE SOMEONE WHO IS KNOWLEDGEABLE ABOUT THE MARKET, TRENDS, AND MORE - ON YOUR SIDE!
TOP 3 THINGS TO REMEMBER:
1. YOU ARE NOT MARRIED TO YOUR INTEREST RATE! WHEN RATES COME DOWN YOU CAN REFINANCE INTO A LOWER RATE
2. YOU ARE BUILDING EQUITY- INTEREST RATES MAY BE AROUND 5% BUT RENTING IS ALWAYS 100%
3.SOME BUYERS HAVE EXITED THE MARKET- IT'S A GOOD TIME TO GET CLOSING COST AND
