Redfin, released a new survey regarding how rising interest rates are affecting buyers in the real estate market. Many in the industry feel that it will deter buyers from moving forward creating a substantial decrease in the progress the housing market has made from 2012 to 2013, which more than doubled in buyer activity year over year.
The poll taken showed that 47% of people expressed concern that the rising interest rates would decrease buyer demand. 32% expressed little concern, if any, about rising interest rates.
However, Redfin revealed that 45% of potential buyers still feel it is a great time to buy. The surprising part is that this is an increase to last quarter, 2Q2013 of 44%.
Additionally, 48% of sellers still think that it is a good time to sell, which increased 3% from the 2Q2013 of 45%.
Los Angeles Redfin agent, Eric Tan stated, "Of course home sellers are worried about interest rates, but the reality is that many buyers believe that rates will continue to go up. They know if they don't move now, they might be kicking themselves all over again in three months."
In the same survey, Redfin found that 85% of people feel that home prices will continue to rise in their area. Likewise, 17% of those people felt that home prices will substantially rise from 2Q2013, to the 3Q2013.
Ellen Haberle, an economist for Redfin added that, "Results from our seller survey point to growing confidence in the US economy, and recognition that broad economic gains could erode sellers' advantages in the housing market as mortgage rates rise."
http://www.pahroo.com/Rising+Interest+Rates+%e2%80%93+Not+So+Much+Concern%3f
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