@natale_realtors This won’t end well if rates keep going up Well home prices will go down big time, right? Not necessarily. If rates keep going up, it will most likely be because there’s a continuous “labor problem.” A problem that means too many people are employed. Crazy, right? But that’s the world we live in. A crazy one. If people aren’t forced to sell, like banks were forced to sell foreclosures in 2008-2010, it’s hard to see why anyone would fire sale their home if they don’t have to move. This will limit inventory even more since those in the market to sell will most likely be those who have either unfortunately passed away (estate sales) or those moving for jobs (relocation). With WFH culture, it’s hard to even see the latter. Otherwise it will just take longer to sell, not necessarily for less, since many sellers will wait for buyers who need to buy rather than cut their price. You’ll see further lenders come up with products that help navigate the higher rates even more. Sellers may even start to offer to pay for points on a buyer’s mortgage. There’s all sorts of things that can come from even higher rates. None of them will be good other than many will have a job, but it means inflation will only get worse than it already is. If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help. #realestate #realtor #realestatebroker #natale ♬ original sound – Natale Realtors
This won’t end well if rates keep going up
Well home prices will go down big time, right? Not necessarily. If rates keep going up, it will most likely be because there’s a continuous “labor problem.” A problem that means too many people are employed. Crazy, right? But that’s the world we live in. A crazy one. If people aren’t forced to sell, like banks were forced to sell foreclosures in 2008-2010, it’s hard to see why anyone would fire sale their home if they don’t have to move. This will limit inventory even more since those in the market to sell will most likely be those who have either unfortunately passed away (estate sales) or those moving for jobs (relocation). With WFH culture, it’s hard to even see the latter. Otherwise it will just take longer to sell, not necessarily for less, since many sellers will wait for buyers who need to buy rather than cut their price.
You’ll see further lenders come up with products that help navigate the higher rates even more. Sellers may even start to offer to pay for points on a buyer’s mortgage. There’s all sorts of things that can come from even higher rates. None of them will be good other than many will have a job, but it means inflation will only get worse than it already is.
If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help.