Are home values actually on the line because of rising rates?
Homeowners and past clients alike all seem to want to know the answer to this common question: Will rising interest rates bring home prices down? The answer isn’t cut and dry, but in a market where rates are set to rise even further this year, buyer affordability could take a serious hit. To give you a better idea of if your home is poised to lose value in the coming months, allow me to explain some key factors of our changing real estate market.
Rising rates are making mortgages more expensive, and as a result, some buyers are getting priced out of the market. In turn, that reduces demand for homes. Rents will likely increase because there will be more demand from renters who were originally hoping to buy. There’s also still a national shortage of homes. Low supply is keeping prices high, but we’re not headed for a crash. The current market conditions are not the result of bad lending practices like they were back in 2008.
I’m standing by to help you with all of your real estate questions. Don’t hesitate to reach out to me by phone or email if you need any help. I hope to hear from you soon!
