The market is really heating up thanks to rising interest rates and the start of the new year. If you were on the fence about buying or selling, you might want to come down. Here's why.
Happy New Year! We're already getting to the point where things are picking up in the Baltimore real estate market due to rising interest rates from December and the Fed saying they will go up in the next two quarters. We were lucky to see rates below 3% as we're now approaching 4.5%, and I think we'll be in the 5% range before the end of the year.
This has already started pushing some buyers off the fence and into the market to buy a home before rates go up again. With the holidays being over, we're already starting to see more showings and sales. If you're thinking about selling, reach out to us soon to get an appointment set up. There are also many 'coming soon' houses that will be on the market this time of year, and we're expecting a very busy spring due to the rise in rates.
Basically, a 1% rate increase raises the cost of a house by 10%. If you could afford a $350,000 house and rates went up 1%, you would only be able to afford a $315,000 house. Rates don't always change based on the stock market, but rather the bond market. If you see interest rates starting to tick up, don't be surprised. It's also predicted that in 2018, we'll see two or three more increases in rates.
A 1% rate increase raises the cost of a house by 10%.
If you have any questions about the market, interest rates, or your home's value, give us a call or send us an email. We look forward to helping you.