Real Estate Broker and realtor Patrice Henderson discusses the market trends from the first quarter of 2022 going into the second quarter. People looking to buy should buy before interest rates continue to increase and sellers should sell before interest rates continue to increase.
Hi everyone. I hope everyone is doing well today. As we’re into the second quarter of 2022, I want to give you another real estate market update on what we are seeing in the market. And that way, if you’re looking to buy, sale, build a home, or if you have any questions or concerns, you’re free to reach but I like you to have information that I know most people are interested in.
So last time I let you know back in February that it was still a seller’s market, we’re expecting the interest rates to go up and for that to impact the strong seller’s market because that would mean that buyers’ purchasing power is going to change. And the interest rates I quoted then were more like going up to 3.8%, maybe 3.7%. But now we’re seeing that they are about 5%, depending on the mortgage and your credit score and all that kind of stuff. And we could even see a potential 6% for the interest rates increase, too.
And so what does that mean for you as a buyer or a seller? Well, if you’re buying a home, what that means is you definitely want to consider that as the interest rates increase, that’s going to impact what you’re going to be able to buy. For example, if you’re looking to purchase a home for about $300,000, that may mean that the $300,000 home that you’re looking at now, may for the same mortgage rate now be 325 or 350, depending on what the interest rate will be for you at that time. And so if you’re looking right now, I would just say you may want to focus on just getting a home and winning that house versus finding the perfect home. If you’re very serious about finding a home and getting a home a certain time frame, because as time goes on, you’re going to have to adjust to what you were looking at before.
So let’s say you found that home for $300,000 last week, and then next month your interest rate has gone up. Well now you have to look for something else. You may have to look for a home that is now only worth $275k, because that’s where your mortgage payment is going to be in line with your purchasing power is. And then if you’re looking to sell a home, I would say ideally, you want to have your home on the market sooner than later, because as interest rates go up, that’s going to affect the kind of offers you’re going to get and how many offers you’re going to get. For example, right now there may be a home on the market that has a line out the door.
You may have 10, 15, 25 offers on that one house. But as interest rates continue to go up, that could change where you no longer have that many offers, you may only get five, you may only get ten. And just because you have more offers doesn’t mean you have better offers but you have the potential to have better offers and stronger offers because people know the more competition, the stronger offer has to be in order to beat the next person’s offer and it could affect how smooth that transaction is going to be for you.
So the sooner you get your home on the market, the sooner the potential you have to get more money for your home, close on time, have very fewer issues and move on from there. So just to wrap up here, if you are selling a home, you want to get your home on the market as soon as you can so you can maximize on your profits and have the best transaction possible and then if you’re buying a home you want to be under contract and lock into an interest rate so that way you don’t have to change gears on the kind of home that you’re looking to buy because of the interest rates. Now they are talking about adjustable rates coming back. I don’t have all the details on that soon but that could impact things as well but yeah, this is pretty much where the market is.
It’s still a seller’s market. It might still be a seller’s market all the way to the end of the year but as interest rates go up it’s going to impact the buyer’s purchasing power and so there may be some kind of correctness in the market where these homes may not keep increasing but the prices may not increase but as the interest rates increase that’s going to balance things out. So that’s essentially all I have for you today. If you have any questions feel free to comment inbox me. You can visit my website at DesignedLivingRe.com, you can email me at [email protected] or text or call me at 248-780-2521. Thank you and I hope you have a good day.
Bye.”
For more video content, check out her YouTube channel here.