RISING TO THE CHALLENGE….
Principal Broker Brandy Harp at Jon Underhill Real Estate and the company of experienced real estate experts can help navigate the volatility of the housing market with ease and confidence. She shares some insight for what to expect in the coming months…
Let’s talk the rising interest rates!
You may have noticed increasing interest rates. Interest rates have increased over 100% from this time last year. Rates are trending over 7% for a 30-year conventional mortgage. This rise is intended to curb inflation and stabilize the economy, which is the root cause of the real estate market “softening.”
What does this mean to you?
In Central Arkansas, we are typically insulated by the national housing market extremes (highs and lows) due to a consistent market place of selling and buying homes. It is still a great time to sell or buy a home. We are experiencing a well-balanced market for sellers and buyers. This means it will likely take a little longer to sell a home – as buyers do not want to risk owning two homes. It also means that refinancing will be an option in a few years if and when rates recede.
Wondering if we’ll experience a recession similar 2007 and 2008?
We believe today is much different. In 2007 and 2008, the real estate bubble was a result of over aggressive lending practices combined with high inventory. These contributing factors created the housing bubble that brought us into a recession.