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The Race to Buy A Home Before Interest Rates Rise

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Across the US the consensus is low housing inventory, rising sales, and more buyers than sellers.  And it's not just housing sales.  The housing rental market is also constrained.  

Homes for rent are far and few between so tenants with low credit scores and challenges on their credit history can challenge a tenant in finding an accepting landlord. 

So how long is this sustainable?  How long before the number of buyers equals the number of sellers?  

Part of that answer lies in the mortgage interest rates charged for loans.  If interest rates rise, some buyers may be priced out of the market, as mortage payments increase.  Rising prices have eliminated some buyers already, but when rates dipped into the 2% range, the number of refinances and buyes escalated. 

 

Another part of that answer is multiple offers by multiple buyers.  Since it's so difficult to get a contract accepted for those with low down payments, some of them are making multiple offers on more than one property at a time.  So the true number of buyers in the market may be skewed.   Just the other day, an agent reported hearing of 52 offers on one listing in Gilbert, Arizona, one of the hottest areas in the Phoenix Metro Area. 

 

February 2021 Year over Year Housing Snapshot

 

These results are for the entire Phoenix area, Maricopa County, population over 4.6 million people.  This snapshot is dated February 9, 2021.  As of March 3, 2021, our inventory of all types of residential property (single family homes, condos, townhomes, mobile homes and lofts) is 3,992!  Our record high in 2011 was over 56,000 properties.   

 

A realtor friend of mind shared a pun "I'm thinking of buying a house.  How's the market?"  The realtor answers, "Remember back in April when you were trying to find toilet paper?  It's kinda like that! "

If you're looking for a realtor that works tirelessly for buyers and sellers, contact me!

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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

The real issue is that people need to buy a home when they are ready to buy a home and this is kind of secondary but still very necessary, like you said

Mar 03, 2021 09:29 PM
Steven Nickens
Hawaii Life Real Estate Brokers - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

On Maui we also have low inventory, with high demand to purchase homes.

Mar 03, 2021 09:42 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

I agree Jan Green the potential rise is a motivating factor for many buyers. However, we are still close to record lows at 3% when it was not too long ago that 5% looked great. There is something in our makeup that makes many of us to find and buy our own home. Jeff 😎

Mar 03, 2021 09:58 PM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jan,

What a wondefully informative post.  I hope you are profiting and thriving as a result of this phenomena.  Wishing you a wonderful Thursday.  A

Mar 04, 2021 05:03 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Jan Green yes, race season has begun. To score the victory before the rates go up.

Mar 04, 2021 06:34 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Jan Green - It is amazing how low the inventory is during our hottest selling season. I am shocked at how fast these homes are selling. 

Mar 04, 2021 04:49 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

The mortgage rates are definitely driving a lot of buyers into the market.  It's unreal the demand we have in our market right now.

Mar 04, 2021 06:46 PM