MELANIE KISHK
THE RECENT SPIKE IN INTEREST RATES CAUSES SOME SELLERS AND BUYERS TO PANIC AND SOME TO SHRUG. AS A RESULT, MANY PEOPLE OUTSIDE THE REAL ESTATE INDUSTRY, WHO MAY NOT BE BUYING AND SELLING PROPERTIES DAILY, START ASKING WHETHER NOW IS STILL AN EXCELLENT TIME TO BUY OR SELL A PROPERTY. WITH SOME MINIMAL QUALIFICATIONS, THE ANSWER IS STILL A RESOUNDING “YES!”
When it costs more to borrow money, buyers get nervous, which is understandable. No one wants to find out their mortgage payment has suddenly jumped up before they even find a house. But, at the same time, anyone buying a home should expect some market fluctuation during their search. Sometimes it works more in favor of sellers, sometimes buyers. There is, however, good news for patient buyers.
Inventory remains relatively low, but sellers cannot expect to be inundated with multiple offers the day their house hits the market. In addition, buyers faced with increased interest rates are more discerning when homes become available, particularly those buyers able to pay in cash or substantially reduce their borrowed amount. As a result, houses may remain on the market for longer than they would have at the market’s peak, but buyers still need to act with deliberate speed when they find the right property.
Sellers have reason to be optimistic, too. The number of houses on the market is still historically low, so buyers will not wait forever before making an offer. In addition, sellers willing to keep a listing updated and be realistic about their asking price are still in the catbird seat. No one wants to wait to pounce on a great house once it hits the market, because they know it won’t last long.
So, what’s the bottom line for buyers and sellers? There is no need to feel caught between paralysis and panic, even with interest rates creeping upwards. Whether in the market for a new home or selling a house you’ve loved for a long time, take a breath and step back. Work with your trusted realtor and ask for his/her advice. You’ll find the right house or the right buyer before you know it.
Century 21’s Melanie Kishk is a full-time Broker/Owner. Her team consists of top performing real estate agents serving Brooklyn, New York and the surrounding communities.
