The rising interest rates are making the market easier for buyers.

I received a lot of questions about the rise in interest rates and the market shift that’s happening as a result. This will mostly affect buyers, but it is starting to impact sellers, too. With interest rates climbing, many buyers are focusing on that increase. However, 5.5% is still a great rate historically speaking. If you’re thinking about buying a home, I want to bring up a few things you might not have thought of.

For one, these increased interest rates mean that you have less competition. You may not see as many multiple-offer situations. I’ve had a few buyers who’ve gotten their offers accepted recently because of this reduced competition.

“The market is still competitive, but not as much as it was a few months ago.”

Along with multiple offers comes higher prices. In the past few months, I’ve seen offers of $10,000 to $30,000 over the list price. That’s starting to cool down, so you are paying more in interest, but you’re not paying as much on the purchase price. If interest rates drop in a couple of years, you could refinance and get a great deal.

There aren’t as many waived inspections; sellers are starting to accept offers with an inspection contingency. The market used to be so competitive that buyers couldn’t get their offer accepted if they didn’t waive the contingency. It’s still competitive, but not as much as it was.

There are a lot of details that I wish I could get into, so if you have any questions, call, email, or text me. I would love to talk about our market more with you.