What Does a Shift in Our Market Mean for You?

Minneapolis Real Estate Video Blog with Erik and Greg Winegarden

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I’ve been getting a lot of questions lately about the market and what exactly is going on right now. I’ve done a little bit of research for you and wanted to share my thoughts today.
As you all know, we’ve seen some interest rate hikes, but we haven’t seen anything too major. However, experts are forecasting approximately three more hikes in the next year that will take interest rates up by 2% to 2.5%.

When these interest rates go up, it’s going to affect affordability for homebuyers in the market. Instead of being able to purchase a $250,000 home, you’re only going to be able to afford a $225,000 home.

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Increased interest rates will reduce buyer pools and reduce home prices.

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For home sellers, this is going to reduce the buyer pool for their home. This will put downward pressure on the market and push your home value down.
That’s why if you’re considering selling at all in the next few years, it’s vital that you look at your options for selling this year before these rates increase and prices start to go down.
There’s a lot going on here. If you have any specific questions about this or about anything else related to the real estate market, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.