Q: I need to move for a better job, and I am having trouble selling my home for what it is worth. I am concerned about finding a new home, especially with the rising interest rates. Do you have any advice? – Anne
A: The housing market is in a bit of a tough place right now. Several factors have contributed to this, such as quickly rising interest rates, seller expectations because of recent price increases, and buyers who have gotten used to record low interest rates. We are in the painful process of switching from a strong seller’s market to a weak buyer’s one. There has been a pause in homebuying as people are trying to get used to the new conditions, which has caused housing inventory to swell. Higher mortgage interest rates restrict buyers’ monthly housing budget, as more spent on interest means less on housing. All these factors mean that the market will continue to soften in the short term, which is bad news for everyone. It is never easy to stand on shifting sands.
That said, sellers still need to sell, even if it means moderating their price expectations. Buyers need to buy despite the higher rates. Eventually, what buyers can afford to pay will meet what sellers will accept for their homes. Even in a slower market, there are still plenty of homes for sale and buyers out there looking.
I advise you to accept the new reality and roll with the changes. What you thought your house was worth a few months ago may no longer be the case. Take a fresh look at your asking price and adjust it as necessary. Buyers can now afford to be pickier, so make sure your house shows well. If need be, spruce it up to make it more attractive than the other homes selling in your area. Also, start looking for your new home earlier than you may have planned. Make sure your financing is solid, so you will be ready to buy when you find a new home that suits you that has a seller with reasonable expectations.
