By Sandra Kilgore, GRI, ABR, SFR –
Sales of new and existing homes are down, bidding wars are disappearing, and the affordability crisis continues to worsen as interest rates increase.
These factors can impact both Sellers and Buyers in a direct or indirect way. Sellers are affected by the increase of days on market and the possibility of lower prices due to increased inventory.
Buyers, on the other hand, are affected by higher interest rates. Ultimately, the increase of inventory is a positive for buyers, especially those who have been unable to realize homeownership.
The volatility in the stock market and increased interest rates has impacted many buyers. First-time home buyers are greatly impacted by the rise of interest rates due to affordability. Higher interest rates reduces the amount of home they can afford. That is huge when considering the prices of homes in Asheville.
Additionally, many retirees, who make up a large percentage of buyers, are delaying decisions on purchasing that second home due to the instability of the overall economy.
Although the market is not as hot as it has been, local market surveyors state that the county is still experiencing moderate growth. Due to the changes in the market, educating sellers and buyers is extremely important.
Sellers need to understand the importance of realistic pricing in order to get ahead of a declining market. Buyers must also realize the importance of acting sooner rather than later to get ahead of the projected rate increase. With that in mind, this is a great time for Buyers to enter the market.
Sandra Kilgore GRI, ABR, SFR