Is the real estate community getting use to the higher interest rates of todays market?
Yeah, for the most part, the real estate community is adjusting to higher interest rates, but it’s definitely still a factor in deal-making. Buyers, sellers, and agents have had to shift their expectations. Here’s what I’m seeing:
- Buyers Are More Rate-Sensitive – Many are hesitant, especially those who got used to 3% rates. They’re either looking for seller concessions, negotiating harder, or sitting on the sidelines hoping for a drop.
- Sellers Are Finally Accepting Reality – Some still have "golden handcuffs" with low-rate mortgages and don’t want to sell, but those who need to move are pricing more realistically.
- More Creative Financing – Adjustable-rate mortgages (ARMs), seller financing, and rate buydowns are more common now. Some sellers are offering credits toward interest rate reductions to get deals done.
- Investors Are Recalculating – Cap rates have adjusted, and many investors are waiting for better deals. But land buyers, especially those playing the long game, are still active if the numbers make sense.
- New Construction is Winning – Builders are offering rate buydowns and incentives that make new homes more attractive than resales.
Are you seeing buyers in your market adjusting, or is the hesitation still strong?
Is the real estate community getting use to the higher interest rates of todays market?
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