In the current real estate market, average homes are selling for just over $100,000 more than they were just two years ago. Interest rates have been climbing steadily to help combat inflation. That has left homebuyers with the prospect of purchasing a home that will cost them substantially more per month than two years ago, but wages have not increased at the same rate so they are feeling the pinch.
There is no relief with continuing to rent either. Rental prices have soared as landlords are having to pay more in taxes as home values are reassessed and as the costs for management and maintenance have risen sharply. They pass these costs directly to renters with higher pet deposits, increased rent payments, and maintenance fees.
So, why should buyers hold out any hope? Well, right now buyers are holding all of the cards except for the high interest rates. With more homes on the market, buyers are able to set a lot of the terms of real estate transactions including getting sellers to pay closing costs, having the seller pay down their interest rates, and being able to negotiate price. Dangerous practices such as waiving inspections and appraisals are not happening anymore further protecting buyers.
Buyers who felt rushed during the height of the frenzy now have time to consider decisions instead of being rushed into what is typically the largest single financial decision you will make. High interest rates won’t be around forever so the one downside can always be remedied by refinancing a loan when conditions are more favorable.
If you want to know more about buying and selling homes in the Lake Wylie Area, call us at 803-831-8588. You can view current listings and create custom searches on our website here.
