Real Estate Market Update – October 2018

​Interest rates rose a quarter percent again at the Fed’s September 26th meeting.  This is the eighth such interest rate hike since late September 2016. The Fed also indicated that more interest rates would be forthcoming. According to the latest US economics data from Capital Economics, rising interest rates are expected to slow consumption and investment growth in remaining 2018 and 2019. Capital Economics also anticipates more rate hikes in 2018 and two more in 2019.

So what does this mean for our local market?  Buyers are still out in full force.  Despite seller’s thinking that now is a bad time to sell because of the season.  Buyers are out there because we still have low inventory in our area.  So if you are thinking about selling now is an ideal time.  Competition is extremely low and there are plenty of buyers.  The combination of both equals a high demand!  More demand equals a higher sales price.  Consider selling before the market changes.  

If you are buyer, consider purchasing now before interest rates rise again.  A small change in interest rates can drastically affect your monthly payment.  I can sit down with you and review the numbers as well as conduct a needs analysis to help you determine the best criteria for your home search.  So you are prepared and educated to purchase when the time comes.