The rise in interest rates has been dramatic. There's no sugar coating it. The sticker shock buyers are experiencing is two-fold: sales price and monthly payment.
If one qualified for a 700K house a few months ago, that same monthly payment now only buys a home in the 400s. That is a dramatic difference.
But - there is always a but - there is a silver lining.
While we did not yet see much of a slowdown in August (inventory level dropped to less than a month), we are beginning to clearly see it now.
Rising rates + a slowing market = opportunities!
What are the advantages of buying during these times?
Less competition to no competition!
⇒ not having to sell an organ to score a house
⇒ having the time to return for a second look
⇒ no cash (or a lot less) over appraisal
⇒ little to no escalation clauses
⇒ the return of the closing help
⇒ inspection contingencies with the right to negotiate
The market is shifting. Where to and for how long, only time will tell. But if you want to or need to buy a home, consider the above advantages. Instead of paying cash over the appraisal, you may be able to pay down the rate or increase your down-payment. We may even get you some seller subsidy to help with that!
It's not all bad news for sellers either!
⇒ there are still more buyers than listings
⇒ buyers shopping right now are serious buyers, less lookers
⇒ a slower pace means more time to think, consider, qualify buyer and buyer's agent
⇒ this market is more favorable for home of choice contingencies
⇒ assumable loans (especially the ones with a two point something or three percent rate) are hot!
Whether you are on the buying or listing side, there's a buyer for every house and a house for every buyer. It may just take a little longer to make a perfect match!
Ready to find yours? Call me, Andrea Bedard at 240.593.2860!
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