“What’s going on with interest rates?” I receive this question almost every day. In case you haven’t been paying attention, the Federal Reserve has been raising rates to combat inflation. What impact will this have on our housing market?
As mortgage interest rates rise, buyers’ purchasing power is negatively impacted. As a result, inventory is increasing, and our market has slowed down, which was exactly the Fed’s intention. What does this mean for buyers and sellers?
Sellers shouldn’t panic just yet. You may have to put more effort into your marketing and preparation before listing your home, but you can still secure a great deal. Meanwhile, more inventory is great news for buyers. You’ll have less competition for great homes moving forward.
One thing to keep in mind is that inventory is still incredibly low around Atlanta. Our area only has a 1.1-month supply of inventory right now. Supply is rising, but it won’t be enough to tank prices or cause a crash.
If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!