The Washington Post published on article online tonight about the impact higher interest rates and rising home values are having on the real estate industry. Renae Stucki Realtor team is here to share some insight into this article and help shed some light on how this affects our market and specifically, how it will affect home buyers in Southern Utah. You can read the article HERE and then come back and read our opinion to follow.
It’s true the housing market is one of the areas leading to the recession and it’s also been an area of growth during the recovery. It’s also true many different things are converging on the industry to create a perfect storm of halting the progress the housing market has made.
It’s true that interest rates have increased this year and it’s also true that in recent weeks, they’ve decreased as well. But most economic analysts agree it’s unlikely they’ll drop back to the record levels of last year and early this year. Part of the problem is the Fed’s suggestion they will eventually wind down the economic easing they’ve been participating in. These decisions create tension in the market and further drive prices and interest rates. Even the rumor of the winding down of these policies is enough to cause rises.
But what does that mean for buyers in this market? Essentially, it means now is the time to make your move. If you’ve been waiting for interest rates to go down a bit or home values to slacken off a little, you’re in for a nasty surprise just months down the road. Many first time and low income home buyers are going to find themselves priced out of the market very quickly if they don’t move now.
It’s vital you take the time to call Renae Stucki today and let her help you make a move while there’s still time. She can help you get pre-qualified for a loan and find the perfect property! Call today.
