2013 saw the housing market slow greatly because of increased interest rates. Are we following the same trends today?
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The 2018 housing market started off much like how the market started five years ago. In 2013, the Federal Reserve saw the real estate market booming and pushed interest rates up to slow down the economy.
Currently we are seeing the same inflation in terms of values and prices as we did in 2013. I believe that the federal government is going to once again slow down the economy and the real estate market by raising the rates again. In fact, they have already raised them twice.
What this means to you, if you are selling, is that you want to get your house on the market immediately.
In 2013, rates started the year at 3.75%. By September of that year, they had risen to almost 4.75%. We sold an incredible amount of homes and had record-breaking sales in the first half of the year, and then the market came to a stop.
You can expect to see the same results this year. So far, we have already seen a huge influx of buyers and sales in the first quarter of 2018. The housing market is booming right now, we’re seeing the best prices in years, and we are seeing interest rates increase.
Interest rates have already jumped by almost 0.5% within the last six months. For the second quarter, they will continue to go up probably 0.25%.
By July, most buyers who are looking will have bought a home. After that, there will be an increase in inventory for the second half of the year, which will slow down the housing market and bring prices down.
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So, if you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low. You want to be on the market before the summer months when a huge increase in inventory comes on the market and values come down.
If you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low.
”If you have any questions about this or want to list your home, please don’t hesitate to contact me. I look forward to speaking with you soon.
