Thought about selling your home? You might be thinking if you could sell, you’ll make a good profit because the housing prices over the last 2 years shot up. You might have thought about relocating to a different city, state, or even country. If you’re planning to sell because you can make a good profit, you also have to think about where you plan to live after you sell your house. Housing prices are still above where they were 3 years ago so if you sell high you’re going to have to buy high. And if you got in with a low mortgage interest, don’t expect that on your next purchase. The housing market is slowing down and many home owners are staying put.
With interest rates almost triple than what their lowest was, it makes borrowing that more expensive. The past 2 years, you could buy an expensive home and still afford it with the low interest rates. Now, that same home is going to cost you hundreds more per month because of the higher interest rates.
Home sales are slowing down. What does this mean? Home owners are still trying to get top dollar for their home but home buyers aren’t jumping in and competing with each other like they were just a year ago. While you’re seeing home prices go down slightly and interest rates going up, don’t expect to see home buyers giving bids over asking price. Home sellers will want to keep their prices as high as possible especially if they’re not in a rush to move.
What we do know is that interest rates aren’t going back down. It’s going to cost you more for your mortgage. Will interest rates continue to climb? Home sales are down because the number of homes being listed are low. Existing home owners are staying put not willing to give up their very low mortgage rate in order to buy another home with a higher interest rate even though they could make a profit on their current home. Home buyers are also staying put because the price of a home is significantly more now thanks to the rate hikes.
For the time being, you’re going to see a trend where home sales will slow down and people are just staying put where they are. Whatever situation you’re in, financially always know what you can afford and what you cannot. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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