Welp, it's confirmed, buyer demand is back. The question is for how long? Interested buyers flooded my open house this past weekend and we've received six offers in 5 days. I expected to see this, but interest rates are not playing along as of now. As I type this, my lenders have already sent me their rate updates hovering around 6.5%. I am typing on Monday, and the CPI report is coming out early Tuesday. The results of that will most likely affect rates for better or worse. If CPI surprises higher and takes interest rates with it, how long can buyers withstand that pressure? Of course the opposite could happen and we get a positive reaction sending rates lower a smidge...or more? In my opinion, rates will need to hover below 6.5%, and more ideally breaking and holding under 6% to maintain momentum. Interest rates are key, but the real story is homeowners simply are not interested in selling. Understandably so, I am not interested in exchanging my 2.75% for 6.5%. However, if there is someone out there looking to take advantage of that equity, or need to sell for any variety of reasons, or want to sell, now is a great time in terms of incredibly low supply, and clear buyer interest even at these higher rates. The article of the week below can help explain a little bit more my thoughts written here, probably in a more articulate manner. Whose ready for baseball season!? What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
