Falling Interest Rates; Great for Buyers AND Sellers

The falling interest rates this year are great news for buyers and sellers.  We love that we get to share this news and love what it will do for the real estate market here in the Valley.

Interest Rates

Fewer things affect the real estate market more than rising and falling interest rates.  When interest rates are low, mortgages become more accessible and there is an increase of buyers into the market.  Lower rates have a positive effect on home affordability and we see our buyers able to increase their target price range.  On the flip side, rising interest rates mean higher mortgage payments and the market does slow down as buyers have to look for something more affordable to fit their target budget.  With reduced borrowing power, buyers have to be careful when selecting their next home.  One thing we know for sure, buyer behavior and market trends can be determined by what is happening with interest rates.  

What Buyers Will Love

The two main struggles facing buyers today are high interest rates and low inventory.  However, most experts offer a positive outlook for 2024.  We can expect to see falling mortgage rates provide relief to the affordability issues buyers have been faced with.  In addition, an increase in supply should help home prices to stabilize.  New home construction continues to grow adding more options to the market and with the economy cooling down, the predictions for what the Fed will do suggests good news for 2024.  Buyers do not need to be afraid, there is still a great chance for success especially with an experienced agent.  

What Sellers Will Love

Sellers stand to benefit from the low inventory in the current market.  However, sellers are challenged because they will need to find a place to go once they’ve sold their current home.  That means buying something in the current market with a higher interest rate.  The majority of homeowners with a mortgage have a rate below 6%, some even as low as below 3%.  While many potential sellers are staying put for now, 2024 shows promise that this may be the year homeowners grow tired of waiting it out.  As we start to see interest rates fall, homeowners will have a hard time resisting the urge to tap into the equity they have gained on their home over the past few years thanks to the double digit home appreciation we have experienced.  Sellers have the opportunity to hit the sweet spot as demand increases in the spring and inventory is still low, making every new home on the market extremely desirable.     

Let's Talk

If you are on the search for your next dream home, The Bruske Team has the network and experience to show you all the best properties (even some off market)  that the Valley has to offer.   Sellers can rest assured as well, we guarantee we can find you the right buyer who will love your property and allow you to move on to your next great adventure.  

We know you will love working with us, and we can’t wait to get started!  Contact us today.