Three reasons why people are concerned about entering the market.

Some buyers and sellers are on the fence and are wondering if now is the right time to make a move. Here are the top three concerns that are causing people to hesitate:

1. Home prices are too high. Some think the market is appreciating too quickly, and they want to wait for prices to come down. Home values have increased quite rapidly over the last few years. As you can see from the chart at 1:00 in the video above, that increase is catching us up from the fall of home values in the early 2000s. Prices will continue to rise, just not as quickly as they have over the last few years. If you buy today, the value of the home you purchase will continue to rise. Waiting to buy will only cost you more due to rising rates.

2. They think the market is going to crash. Some fear that the housing market will crash like it did in the early 2000s. However, our current market is completely different. Today there are much stricter guidelines for borrowers. Back then, many homeowners had low or no equity because they used that equity to buy things. There was also an oversupply of homes. Today there's historically low inventory, and homeowners have more equity in their homes than ever.

“Rising interest rates impact both sellers and buyers.”

3. They are waiting for home prices to decrease. There's no crystal ball to tell us the right time to buy or sell a home. Depending on what media you listen to, it can be confusing to understand what is happening in real estate. We know that home values are continuing to increase and that a housing crash is unlikely.

Rising interest rates impact both sellers and buyers. Higher rates may lower purchasing power and force a buyer who could have bought your home a few months ago to now look at houses much lower in price. Buying power will be reduced by at least 10% for every 1% increase in interest rates. At 2:50 in the video above, you can see how interest rates will impact your affordability by hundreds of dollars per month.

Now is the time to look at the opportunities in the market before interest rates continue to climb. Call, text, or email us to discuss what your buying or selling strategy can look like for your particular needs.