Find out why rising interest rates don’t have a large impact on the real estate market.
Rising interest rates have everyone asking – how will this affect my ability to buy or sell a home? We are turning to the experts to find out what we may be seeing in the market.
Reviewing Past Markets with Rising Interest Rates
So let’s take a look at the past so we can have a better idea of what our future will look like. If we look back at data from October of 1993 provided by Freddie Mac, we see that there was a comparable spike in mortgage rates. At that time we saw no negative impacts on home prices and they still appreciated by 8%. However, there was a decrease of 11% in home sales that same year. So, many people were likely priced out of buying a home due to market conditions.
Reviewing Current Market Conditions
We are looking at a very different environment though because we are not expected to see the rate increase that we saw from October 93 to December 94 where it increased 2.38% to 9.2%. Overall we see about a 2% impact on home sales, whether positive or negative. If we take out the outliers of ’05 and ’06 which lead up to the housing crisis, we see that overall rising impacts don’t have a large impact on home sales. That’s what the experts are seeing!
Interest Rates Don’t Matter
If you have any questions you can always reach out to me and we can see if now is the best time for you to make a real estate move. I’m Eren Millam and remember, Extraordinary Service Delivers Extraordinary Results.
Hi, I’m Eren MIllam with Premiere Property Group, and I help sort through all the uncertainties in the market and give you facts so you can make an informed decision about your home.
Thinking of buying or selling your home in the west Lewis County area? Contact me today. I’d love to hear from you! Eren Millam – Managing Broker Premiere Property Group, LLC WA License No. 26933
Chehalis, WA 98532 Centralia, WA 98531
Call/Text: (360) 219-3616
Check us out on FB: https://www.facebook.com/erenmillamrealtor
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