The combination of rising interest rates and low inventory is creating a high-urgency market, and quick action from potential home buyers.
However, home sellers should take caution, over-valuing or raising the price of your home may have the opposite of the desired effect. Stone Ridge Properties owner Jennifer Germain reminds sellers “with the threat of rising interest rates a properly priced home will always sell.”
Owner Cathy Toomey agrees and adds, “I think the increase in inventory should allow buyers better choices while acknowledging that properties properly priced will still move quickly.”
If your home, or a home you have had your eye on has been sitting on the market for a while, usually that means the price should be reconsidered. “A home that’s priced correctly in Newburyport shouldn’t have any trouble selling, if your home isn’t getting much activity or any offers - you have to look at the price” says Stone Ridge Owner, Sean Perkins.
What else should home sellers and home buyers consider heading into Fall?
Potential home sellers:
- Rising interest rates tends to ignite a sense of urgency in potential home buyers, as interest rates steadily increase, home buyers that were hesitating to buy may jump in with offers.
- If your home isn’t selling quickly, speak to your REALTOR®. It is likely the price may need an adjustment.
Potential home buyers:
- It may be in your best interest to act quickly because it is likely the rates will continue to increase through the end of the year and will unlikely return to the historic lows we have been seeing since 2014 (Forbes)
- Remember there will always be highs and lows in this market, and if you wait for the initial rush of buyers to die down, home prices will level off as the interest rates continue to go up.