With interest rates climbing, potential home buyers will be hoping the housing market will finally come down to an affordable level. While there has been some noticeable cuts to listing prices in recent months, buyers should be warned that the increasing rates are not having that dramatic of an effect. Due to low supply and a high cost of construction, prices are remaining on the high side and combined with higher interest rates, this will cause buyers to over pay for their home.
In today’s market, houses are going for up to 25 percent more than what they were a year ago. The low supply of housing has also forced buyers to submit offers much earlier than they would have in the past, in order to be competitive. Oftentimes, this means skipping inspections which is another danger and opens the door to even further expenses.
Andre Stewart, CEO of InvestFar, spoke with The Epoch Times recently, and advised, “It’s worth the money to get the inspection so homeowners can have a full punch list of items to be completed before they close on the property.” He continued, “During the pandemic, a lot of people were buying properties sight unseen, and they were skipping inspections. Getting a home inspection is extremely important—even with brand-new housing developments.”
Even if buyers see listing prices coming down slightly, they should take into account higher interest rates and the fact the market remains very competitive. Buyers should not be impatient, skipping inspections, and settling for a price that is not within their budget. The fourth quarter is usually slower for the housing market, due to the holidays, so we will have to wait for the new year to see what the future holds.