The latest real estate stats and a great tip for the market in January.
People ask me all the time, “What are your current thoughts on interest rates?” This is a hot topic for real estate right now, so let me share just a couple of thoughts.
The first thought is that when we look at historical data, rates are still at a great level. So there have been times in the past when I remember seeing rates at 18%. This is back before I was in real estate. But historically, there have been times when they were incredibly high. If we look at just the last few years, yes, rates are higher now, but they’re still historically at a pretty low level.
“When we look at historical data, rates are still at a great level.”
The second thing is that when we look at what the future holds, what do we anticipate happening? There are three key numbers that we’re looking at. We’re looking at the unemployment rate, the GDP, and the inflation level. Right now, inflation is high. As a result, the Federal Reserve is raising interest rates to combat inflation.
So how can you still buy and sell real estate despite rising interest rates? One great tip is to do a seller buydown, where a seller actually credits the buyer money that they can then use to buy down their interest rate to reduce their payment. It’s a very creative strategy. We have done that in the past. We haven’t done that in a while, but it’s that time again when that may be a good option.
As always, if you have any real estate questions or needs, please feel free to reach out via phone or email. I am always available.