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How Will The Rise In Interest Rates Affect Your Home’s Value?

How will the rise in interest rates affect your home’s value?

Everyone is calling us and asking, how are these rising interest rates affecting my home’s value in 2022? And we looked into it. A panel of economists hired by the National Association of Realtors predicts that home values will go up 5.7% in 2022. Even Zillow says home values are going to be 6.6% in 2022.

You might be thinking, interest rates at 5.7% are still pretty good historically. It is, but that affects your home significantly, especially the people thinking about putting their home on the market.

With higher interest rates, sellers can expect a rise in inventory levels. Some homes won’t be selling in a day or a week, or even a month. Don’t expect automatic multiple offer situations, and don’t expect your offers to come in like they did the past few years.

Can you still get thousands of dollars over the asking price? Has that ship sailed? The window of opportunity is closing for some homeowners. It depends on what type of home you have.

If you have a high-quality house in a great location, it is still possible to have a multiple offer situation with the proper marketing.
But you’ll need to target buyers not just in town but out of town also. It would help if you also found buyers with lots of equity or cash because they’re not as affected by the rising interest rates.

Higher interest rates and more inventory mean there will be more competition. You will have to make more repairs with the additional round, and the buyers will have more negotiating power.

Reach out to the Nick McLean Real Estate Group if you are interested in a no-cost, no-obligation home valuation using our marketing so that you have the data to decide whether or not you should put your home in the marketplace this year.

Talk to a real person call now 509.255.8070

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