The nation is coming to grips with the fact that the period of ridiculously low interest rates may soon be reaching the end. The question I get asked most often is, “But what does this mean to me? Did I miss the boat?”
Valid fears and concerns, yes you did miss the “Rock Bottom Pricing” we had earlier this year but now is still an excellent time to buy. No one knows when exactly rock bottom is going to hit and when the rebound will begin, now that we see home prices increasing as well as interest rates it could be disheartening, but let me give you a few insights to consider.
#1 More sellers will be able to sell their homes as the prices stabilize, so those who could afford to manage to hold on will now be looking to sell those homes.
#2 Mortgage rates are still at a Historic Low, Take it from someone who saw 18%, you are still getting a GREAT deal if you buy today.
#3 We are not done with the foreclosure market, there will still be plenty of those out there, just remember the commitment to purchase a short sale or foreclosure home is NOT for the weak of heart, this can take a lot of twists and turns and can be delayed many times in the process.
#4 Today, the national average for a 30-year fixed mortgage reached 4.35 percent, according to Bankrate.com, which, in the grand scheme of things, is still well below historical norms.
The Bad news?
The home you might be qualified for today might be less of the home you were qualified for earlier this year.
Zillow Economist states, “At some point, with both increasing (Prices and Interest rates), consumers will find themselves in a position where they notice homes are more expensive than what they’re used to, and potentially priced out of the market”
In appears that it has been mostly the home prices that have driven the buyers back to the market and will continue to do so despite the increasing interest rates. Buyers will continue to purchase they simply may have to purchase a home that is less expensive than they first anticipated.
Buyers who were trolling for “The Deal of the Century” might have to re-establish what they want and acknowledge that buyers have more options then they had in years past, the sometimes ferocious buyer mind set might also have to shift a bit in future negotiations.
All in all it is a great time to buy or sell real estate, if played well it can be a Win-Win for all parties involved.