Things are changing. We are currently undergoing a shift in the market but what exactly does that mean?
Days on market is getting a little bit longer and we're starting to see less buyer activity but that doesn't mean that less transactions are happening.
A lot of the tire kickers out there that have been "thinking" about buying a home have allowed interest rates to scare them way. Interest rates have risen. Just a year ago, you could have gotten an interest rate maybe in the 2s.
If we look historically at where interest rates have been, you'll discover that they've been as high as 18%. Ask anybody with a little bit of grey hair what their first interest rate was and you're going to feel good about the situation you're in right now.
The good news is... There is still a high demand for housing. Most of what we see when people are reaching out to us is people moving from other parts of the country saying, "hey California is getting crazy. Up North is getting crazy. I can't afford to live there anymore and I want to move to Tennessee." We're almost insulated in Chattanooga in the sense that we have the opportunity to see housing grow as a result of the high demand.
So if you're thinking about making a move, I would not wait because interest rates might continue to creep up. And guess what? Even if they happen to drop, you always have the opportunity to refinance your home and lock in that lower rate.
Days on Market - the total number of days the listing is on the active market before either an offer is accepted or the agreement between real estate broker and seller ends.
Refinance - Refinancing a home loan involves replacing your existing mortgage with a new one, typically to obtain terms that are more favorable or that fit your financial goals
- Doug Edrington, CEO of Berkshire Hathaway HomeServices J Douglas Properties