This week our monthly residential real estate updates continue with a new piece from Kay Bates, residential real estate broker, about not listening to all the negativity.
Don't Buy In!
I’m grateful that I get to write this column and I’m grateful for every person that reads it. Your time is valuable. Now let us dive in.
What’s all that chatter? Let’s think about what words we have heard circling… “The Market is crashing"... “It’s not a good time to invest”... Don’t buy into all the negativity!
Let’s also take a moment to breathe. One thing in life that we cannot outrun is change, it’s inevitable. The real estate market in particular is cyclical and ever changing. There is no reason to be scared. The conversation should be “What does this mean” and “How can I take advantage of this change?”
The reality is Mortgage Rates are climbing and will be raised again in November when the Federal Reserve meets again.
When we look around everything has gone up, right? Gas, groceries, restaurant bills, clothing, shoes and so much more. I believe as consumers we do not need the Federal Reserve to tell us that there is inflation, WE ALL know it!
As The Federal Reserve increases interest rates, it has created a slowdown in home purchasing. Prices are high and interest rates are higher than they have been in years. This combination, at a glance, appears detrimental for buyers and sellers. The market has definitely slowed down builders and investors, but this change gives buyers more power and flexibility in the marketplace.
Change brings opportunity. New opportunities for buyers and sellers in transition. This market may appeal to buyers who are paying a high rental amount (BTW rents probably will not be going down anytime soon either). If you are a potential buyer willing to really look at the numbers… then it could make sense for you.
Let’s also take a moment to appreciate the fact that the market isn’t where it once was! Earlier this year as a buyer, you would have been 1 out of 20 offers, offering considerably higher than the asking price, disregard your contingencies and accept the home as is, with no repairs. That was a crazy time for buyers and agents as well!
However, if that was your situation, don’t worry because in time you will have equity in the home you love so much and fought for!
Just remember, every situation is different. Do not let the negative rhetoric in the Media scare you out of this current market. Acknowledge the change and let’s embrace it. I am excited for the new opportunities that are ahead!
Buyers you can buy, and sellers you can sell!