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Writer's pictureJen Herron-Underwood

Are Rising Interest Rates & Gas Prices Slowing the Real Estate Market?

Everyday this past week I have met with sellers that are asking this exact question? They are wondering if now, is still a good time to sell their home? It is true interest rates have increased. In fact, they have increased about 1.5% since the beginning of 2022. For a buyer this means their monthly payment will be increasing and in some cases this affects their buying power. Traditionally as rates rise typically home values go down. However, this isn’t the case so far this year. In addition, gas prices have been rising as well. Economists feel that if a buyer’s monthly expenses are going up that they may decide to spend less money on their monthly home payment. They may decide to find a home closer to their job to shorten their commute.

Eventually this may hold true, but at this point these two items are not impacting our local real estate markets yet. The past two years have led to a housing shortage. There are buyers that are living in temporary housing, apartments, rentals, and even have moved back in with their parents to take advantage of the amazing real estate market. When you couple the lack of inventory with the pent -up demand of buyers and their changing housing needs after the pandemic we are still experiencing a shortage. NOW IS A GREAT TIME TO SELL YOUR HOUSE!


This is the type of real estate market where you list your home for sale and it may sell in a weekend to a week depending upon where you live. It is the type of real estate market where you may get multiple offers on your home. This means that 2 people are bidding against each other. I have even had 10 offers or more on some properties.


It is very important in this market to choose a professional Realtor that knows and understands the market. Although it is a strong seller’s market there are still challenges with appraisals and financing and these items can negatively affect the sale or even cause a sale to fall apart. It is also important to have a Realtor with a strategy and a way to handle multiple offer situations.


Finally, consider finding a Realtor who loves technology but doesn’t use technology to replace face to face meetings to help you decide on an offer. Its one thing if you aren’t local, then the technology can come in handy. However if you are local putting an actual pen to paper is not only a great feeling but allows you to have easy access to your contract without hunting through your email to find it. If you are looking for a local Realtor that excels in these things as well as provides personal service and attention then give Jen Herron-Underwood a call today at 440-371-2862.

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