Rising rates + a slowing market = opportunities

Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

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!

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland

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Comments (13)

Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Andrea Bedard I cannot agree with you more. Wonderful points on why this is a much better market to buy and sell in .

Sep 30, 2022 02:22 PM
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

I especially like the fact that instead of the seller taking a price reduction, sell at full price and buy down the interest rate! A win-win for both!

Sep 30, 2022 02:40 PM
Andrea Bedard

I like win-win situations Eva B. Liland Century 21 Doug Anderson! That's another great scenario.. thank you for adding it to the list! 

Oct 02, 2022 10:32 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Andrea - time may reveal opportunities as well as silver linings.  Perspective can make possibilities too.    

Sep 30, 2022 03:17 PM
Andrea Bedard

It's all about perspective Michael Jacobs. I am not a doom & gloom person, there are opportunities in every market! I'd rather focus on how to make things happen than on all the things that may make it more difficult. 

Oct 02, 2022 10:36 AM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Broker | Realtor | Serving Santa Fe & Northern NM

Hmm... so true Andrea Bedard more normal markets have opportunities for solutions and your post highlights them all. 

Sep 30, 2022 03:57 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Andrea- well said. If you look, it's easy to see the opportunities even in this market. I love that buyers don't have to feel pressured to act before they have a chance to think!!

Sep 30, 2022 06:09 PM
Andrea Bedard

I LOVE having the time to go back for second looks Kathy Streib and more time to research thoroughly. Sellers know that the buyer who chooses to write after carefully considering it, is a very serious one. Things are less likely to fall apart! 

Oct 02, 2022 10:39 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Andrea,

Excellent points! I definitely agree with your post. You are right "Whether you are on the buying or listing side, there's a buyer for every house and a house for every buyer."

Sep 30, 2022 07:36 PM
Andrea Bedard

Thanks Dorie Dillard Austin TX! People need shelter no matter the market conditions. We cannot change external forces, but we can focus on how to make deals happen and get people into the just-right-for-them home. 

Oct 02, 2022 10:41 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Real estate markets constantly change. In many locations, now is a better time for both buyer and seller. Opportunities do indeed exist.

Oct 01, 2022 06:03 AM
Andrea Bedard

I much favor the balance this market provides Kat Palmiotti. A bit of breathing room is not a bad thing.  

Oct 02, 2022 10:42 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Oct 01, 2022 07:55 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Andrea - for sure every cloud has a silver lining.  There are many reasons to welcome a balanced market and rate were unrealistically low for a long time.

Oct 02, 2022 05:01 AM
Andrea Bedard

I do hope they won't climb much higher Grant Schneider if we want to stay in a more balanced market. But people always need homes not matter what happens. We'll adapt and innovate.  

Oct 02, 2022 10:44 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude


Well said! Changes in the housing always bring different opportunities - one just has to look for them, understand their impact, and depending on your personal and financial circumstance, act on them.


Oct 02, 2022 02:33 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC

All wonderful points, Andrea! I'm with you, there's a buyer for every home - and a home for every buyer too. We just have to put on our match-making hats and make it happen!

Oct 02, 2022 05:53 PM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Selling the Main Line & Chester County

A positive and good view on the changing market. I appreciate your positivity to begin this week. 

Oct 03, 2022 06:22 AM
Ed (Edward) Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The realization for buyers that they have to look at homes a lot smaller than they originally hoped is there, but as you point out, patience will be rewarded.

Oct 03, 2022 10:32 AM