For the last few months we all have been waiting with batted breathe to see how the interest rates increase will impact the real estate market. It has been a bit bumpy since the start of the Fed raising rates but overall we still saw a small increase in prices. However, this last rate hike coupled with a end of summer and kids going back to school seemed to have slowed the market down. Last week we saw 38.5% of homes on the market making a price reduction. We even saw a jump in how much seller’s were reducing their price to 6.6% (it was 1.3% the week before). I am a firm believer there is really no “bad” market, just different opportunities. Does that get anyone else excited? No? Just me?
As we see this shift in the market, who may benefit?
Buyers that have lost out previously but still want to buy. The last few years have been so brutally hard for buyers as they competed for homes against many other buyers, including investors. With the rise in interest rates, many investors have had to sit on the sidelines, eliminating then from competition. Buyers are able to get rate buy downs, inspection items and/or concessions from sellers currently.
Cash buyers: Hey! Who cares about interest rates when you have cash. Go negotiate a deal!
First time home buyers: This is a segment of buyers that really had a hard time over the last few years and now is a great opportunity to buy your first home. The benefits to home ownership are plentiful and there is far less competition now that even 3 months ago.
House Hackers:Â Rent out a room or rooms in your new home to offset your expenses. or buy a duplex/triplex/quadplex and live in one while renting out the other side(s) and utilizing an interest for a primary home.
Interest rates may be higher but a slower market offers opportunity to buyers. More inspection items are being completed by sellers, sellers offering to buy down buyers loans and concessions. These are all items that we have not seen a lot of in the last decade as buyers fought for a home and it is exciting to see more opportunities for buyer’s to purchase a home.
Reach out to Liz to start your home search. Liz is  broker and owner of Liz Daigle Realty.
