We have seen a large change of interest rate since the the deep discounted rates over the past 2 years. How is this affecting the market? Well there are 2 factors affecting the market. We still have apparent high demand for housing which is keeping prices steady for the moment. The second factor that is pushing the pricing down is the cost of borrowing. We will see the pricing fluctuate with the above factors as the year continues. We are seeing more listings coming up over the past week which will give more variety and push pricing down a bit. With the higher interest rates we are seeing properties coming to the market where the seller is in financial trouble. Either in a power of sale, foreclosure or just a lower price sale compelled by poor a financial situation. These properties generally come to market in a less than ideal state. This is where an imagination comes in on the part of the buyer. These properties aren't staged or clean for that matter so one needs to have a vision of what the property could be. They are generally sold as is so there are no warranties on appliances or systems. Again this is a bit of a gamble for the buyer but hopefully we make up for that risk in the purchase price.
What will the Summer and Fall Market look like? In short. We will need to be careful and analyze properties before making a purchase.
Research is key! As a Realtor I can show you the sales history of a prospective property and ensure you make the best decision possible.
Where are rates going?
There is a strong rumour that there will be another rate hike in July. We don't know yet however it is a possibility. There is however strong indications that there won't be rate decreases until next year. This will be a big factor in the overall market.
With the fluctuation of market pricing and rates we can get lost in the long range picture of what our real estate goals are. The goal is to stop paying a landlord or building your real estate portfolio. The most important factor here is that Real Estate is a long term investment.
What am I saying? Am i trying to convince you to buy? Not in the least!
The most important thing to keep in mind is that research is vital in your search now more than ever.