What do Rising Mortgage Rates Mean for Sellers?
Real estate has been a seller’s market for many months now, and homeowners who have taken advantage of that are crowing about their record prices. With interest rates historically low, home buyers had more buying power which helped drive up home prices. Now mortgage rates are rising again, and those who are ready to sell are worried about what that means. Will the market swing back, putting sellers at a disadvantage?
Look at the Big Picture
Mortgage rates are rising, but rates don’t rise overnight. Overall, in 2022, rates will rise about 1%, from 3% at the beginning of the year to about 4% at the end of the calendar year. Home buyers will still want to buy homes, and the inventory is still low in many desirable areas. While you may not have multiple buyers in a bidding war, the market will not change so drastically as to stop buyers from purchasing. Don’t allow the slight rise in rates to scare you off from listing your home. Prices are still great for sellers, just at much more reasonable rates for buyers. Now, instead of selling your home fast for a ridiculous price, then struggling to find a place to live while you waited to find a home to buy that wasn’t a ridiculous price, you can have a much more stable experience through your own selling and buying process.
The Market Will Get Less Competitive
The market has been wild for sellers recently. Many sellers have begun to anticipate multiple above-asking price offers, all-cash offers, and bidding wars, and they haven’t had to do a thing to market their home besides listing it. This chaotic process is on its way out – but that’s not a terrible thing. Less competition isn’t always bad news. In fact, it can work in your favor. Presumably, if you are selling a home, you need to move into a new one. Taking the stress out of buying a new home can help you focus on setting yourself apart as a seller and getting a good and fair price for your home, rather than an outlandish offer that you’ll then have to use to make an outlandish offer yourself on a new home for your own family.
Demand Will Still Be High
Rates are up, but they are still relatively low, and many first-time home buyers who were priced out of the market in the past few years may be able to start the process. These buyers are eager to purchase a home in a calmer market, and sellers who are listing now can reap those benefits. You may need to put more effort into staging and marketing your home, but with the right listing agent, you can still get an excellent price, which will put you in an excellent position to buy your next home.
Rising mortgage rates shouldn’t scare you away from listing your home if you are ready to make a move. Even with the rising rates, you have likely gained enough equity in your home to take advantage of the home prices that are still on the high side to make selling a smart financial strategy, especially with the ability to get yourself into a new home more quickly and for a reasonable price. Real estate is a wave, and riding the wave through the ups and downs while focusing on the big picture, is the best outlook for sellers. Having an excellent agent to help you navigate that wave will make the outlook even better. If you’re ready to sell your home and find something new, contact Amberwood Real Estate. Our team of local real estate experts will help you sell and buy for a great price.