With mortgage rates on the cusp of topping 7% for the fifth year in a row, it might be time to stop waiting for lower rates to put your home on the market.
Home Sales
Home sales have cooled significantly as high rates make buyers think twice. Sales of existing homes last month were at their lowest level in more than a year. And that was before the Federal Reserve raised interest rates on Wednesday, September 23. The average 30-year fixed mortgage rate rose to 6.95% this week, Freddie Mac said Thursday.
Most sellers can no longer count on a swift sale. Buyers are quick to walk away from homes that are overpriced or in poor condition.
Of course, real estate remains local and varies often by region and price. Luxury propeties have more cash buyers and remain competitive. But middle-market and starter homes are facing rate-sensitive buyers.
What Real Estate Agents are Saying
Here’s what the agents have said.
Vanessa Leimback, a Redfin agent in Lake Stevens, Wash., said: The biggest mistake sellers are making today is thinking their home is better than the market.
Bill Kowalczuk, an agent for Christie’s International Real Estate New York tells the sellers he works with not to automatically reject an offer because it includes some sort of concession.
Ben Dixon, a Douglas Elliman agent in New York City and the Hamptons, said today he is much more willing to tell an owner to consider not selling at all.
Chris Wands, a Douglas Elliman agent in Miami, said that with higher mortgage rates, buyers have limited cash left after closing.
Allie Carr, a Berkshire Hathaway HomeServices agent in Cleveland, said it pays to make your house look meticulously maintained.
Real estate agents are changing their advice to home sellers as mortgage rates approach 7% for the fifth consecutive year. Of course, real estate remains local and varies by region and price.
Source: Material provided by Veronica Dagher and Nicholas G. Miller
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