How will current interest rates affect the real estate market? It looks like the Feds are going to raise the 30 year loan to 6.38%. They were saying that it most likely will not becoming down any time soon. So the window for low interest rates looks like they are over. The reason the Federal Reserve Chairman gave for the increase rate is to cut off inflation. So how will this affect an already slow real estate market? To compensate for higher rates I believe we will see a lowering of house values if real estate is going to sell.
Sellers are going to have to be on the money in pricing their homes. Also an option is agreement of sales or Purchase Money Mortgage might come into play. I think we will see more incentives from developers to move all ready built out inventories. It is a crazy market place we are in and what we are looking at is adjusting to the way we are use to doing business. We will need to be more creative in the market place. Change is not a bad thing. It is only a bad thing if we don't read the writing on the wall and change the way we do business. Some will adjust and survive and be stronger when the market turns and others will die on the vine and are already looking for other ways to make a living.
Aloha,
Steve
Comments(7)