Will Increased Rates Cause Prices To Plummet?

Depending on your situation, it’s still a fantastic time to buy.

Lately, many people have come to me with concerns about home prices plummeting due to rising interest rates. Does this mean the market will crash? The answers aren't cut and dry, and while I don't have a crystal ball, today I’ll provide you with a little perspective on our current market.

"Supply and demand are driving the market."

Interest rates are still historically low. Loan payments are a little more expensive now, which is shrinking the buying pool. Since some buyers have been priced out of the market, sellers need to be strategic with pricing. We see fewer multiple offers, but homes are still selling quickly. Supply and demand still drive the market despite inflation, rising rates, and increased home prices.

Even with higher prices and rates, demand is very high, and inventory is extremely low. As of June, inventory decreased 40% compared to last year, which was already a low-inventory market. Keep in mind that rent is high as well, and renting means you're paying 100% interest. It's a good time to buy as long as you plan to live in your property for a while.

If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.