If you’ve been thinking of selling your house, it may be because you’re hearing that home prices have been on the rise, listings are going fast, and sellers are getting multiple offers on their homes, and most OVER their asking price. But why are conditions so good for sellers right now? What can we expect to see in the near future and will this seller’s market last?
The answer is simple. It’s the same concept as “supply and demand”. There are many more buyers looking for houses right now than there are houses for sale resulting in multiple offers and bidding wars in the sellers’ favor. But will this last? Experts are saying that the housing market is facing an inflection due to rising mortgage interest rates. Rates have steadily increased week after week since December, 2021 from 3.05% for a 30-year fixed-rate mortgage to 5.0% on April 18, 2022, according to Freddie Mac’s Primary Mortgage Market Survey®.
No one has a crystal ball but indicators show that interest rate will continue to rise forcing more buyers out of the running. Once the demand for homes decreases, so shall the listing prices. If you are considering listing your home for sale it may be wise to do so sooner, rather than later.