Mortgage interest rates have surpassed 5%. More people are in the market to buy homes, but fewer people are willing to list their properties. So, how are folks making do in the meantime? Here are insights on the realities of real estate from Jim Pettit of RE/MAX in Wilmington.
What’s the most competitive range in the home market?
Listings in the $300,000 to $400,000 [range] are especially desirable because they are more affordable and are drawing multiple offers, often selling in a day or two.
Why are so few homes on the market?
Most homeowners either bought their homes at 3% interest or less, or refinanced to that rate. They don’t want to give that up for a mortgage on a new home that would be twice that rate.
How are mortgage rates impacting house payments?
Someone with a $1,000 a month payment at 3% is looking at $1,500 a month at 6%. That means the family that wants to move up from a $300,000 house to a $450,000 house might not be able to afford it.
How are would-be buyers coping?
They are building great credit because that can help them get a slightly lower mortgage rate. They are willing to move quickly because they know a great home sells fast. Some, but not many, are willing to make updates to homes that aren’t in great shape. Others are staying put and fixing up their homes because they can’t find a new one.