Many of our clients are calling to ask whether now is still a good time to sell and make the move they are planning. Most of them are aware of the subtle shift we have been experiencing in our local market due to the rising interest rate environment we have found ourselves in. Indeed, the craze has slowed a bit, as payment minded buyers realize they can afford quite a bit less than they could just a few months ago. So, what can sellers expect? And is this still a good time to sell? Here are a few things to consider:
1) Low inventory: Our data points still suggest that there is a shortage of homes for the number of buyers who want to buy. This means sellers are still selling quickly, though many may not see the "5-15 offers on the first day craze" that we have experienced over the past couple of years.
2) Rising interest rates: Most buyers are payment driven and that means that when the interest rates change, their mindset changes, as well. As they look at paying substantially more (monthly) for the same house they could have paid less for (monthly) just a few short months ago, many buyers pause and reconsider the urgency with which they will submit an offer. They will also begin to expect a more move-in ready product if they are going to pay the same prices that we have seen over the recent months.
3) Price adjustment?: The big ticket question is always, "will prices come down?" Historically we have seen prices increase as interest rates increase-at first. Slowly, the market adjusts to the interest rate environment, assuming rates continue to climb, and we see prices level out. We are in a unique situation currently, as we have massive a shortage of homes, while rates are rising. As some buyers get edged out of the market, we may see inventory increase, which will continue to shift pricing in the market.
The bottom line for sellers? If you will be making a move in the near future, we should get together and make a plan to prepare the house to shine in a market where buyers are getting picky, and inventory may begin to rise. You will want your house to be the best of the best in a shifting market, and I would be happy to help you to position your home to be a "YES!" to the buyer pool that is out there looking today. Call me and let's get started-the market is still amazing for sellers who are positioned to win!
Welcome to our blog. We hope to be able to provide you with some valuable resources about selling and buying a home in the Twin Cities. We may also include a favorite recipe of ours from time to time, so check back often.