Do rising interest rates affect home values on the Wasatch Front? The answer might surprise you.
Many people are wondering whether they should sell now or wait until the spring season arrives. Here’s something to think about if you are asking yourself that question: when interest rates increase, the purchasing power of buyers decreases. In fact, if interest rates increase by 1%, the market loses the bottom 18% of first-time home buyers.
In addition to those changes, a 1% rise in interest rates makes your home 10% more expensive to the next buyer. Just recently, the Fed has decided to keep rates where they are, but Janet Yellen has made it clear that rates will slowly start creeping up soon. As it is, low interest rates are keeping buyers in the market, and sellers often sell their homes for more money and in less time.
If you’re looking for certainty in the marketplace and want your best chance at getting top dollar for your home, now is the time to make your move. If you have any questions about how to take advantage of current market conditions, don’t hesitate to reach out to us. We would love to help you make the most of this market!