- Buyers who are looking during the holiday season tend to be a more serious buyer.
- There may be some tax advantages that will help to motivate buyers to close the sale by year end.
- Some buyers may be looking to relocate prior to the start of the next school semester.
- Buyers will tend to have more time to look for homes over the holidays.
But what if I am a buyer????? My concern is the interest rates. This point is going to become dated depending on what happens with interest rates on mortgages in 2019.
Last fall of 2017, Buyers will still able to get an interest rate around 4%. But now interest rates are around 5%. Historically 5% is still a great rate. But this increase has translated into a 18-22% decrease in purchasing power…ouch.
My concern is will rates continue to rise again on 2019? That 1% rise over the last 12 months may “sound small” and that there should not be a major effect on the market. But when the loan officers are calculating income to debt ratios, that rise in interest rates had a significant effect on purchasing power.
At ever price point, there is less buyers available because of this increase in the interest rates.
I always look forward to questions on the market or real estate. Please call/text me at 916-257-0893 or email firstname.lastname@example.org