After Fed increases interest rates, all eyes will be on housing market

As mortgage rates rise, the cost of purchasing a home has risen and buyers continue to feel inflation’s sting.

The sign that the red-hot real estate market has cooled is that home sellers are cutting their asking price.

Are rising mortgage rates a sign that the housing market will be restructured?

A month ago, Hollywood homeowners listed their homes for sale asking for $2 million. The asking price was lowered by $100,000 on Wednesday by the sellers.

Although the Southern California realty market was hot a few months back, it appears to be cooling.

“If you’re selling your house right now, you are already seeing a reduction in the number of showings, and if you’ve been on the market for anything longer than 14 days, you’re reducing your price,”Khaled Yatim, a local realtor.

Many people, who believed they were ready to purchase, are now priced out by mortgage rates that are more than twice what they were six months ago and rising inflation.

“It’s unprecedented, you’ve never seen a run up in rates this quickly in history,”Yatim spoke. “People that once were so close to owning a home, making offers, a lot of them are trying to decide if they can even manage the payment any more.”

Multiple offers and waiver inspections are the selling frenzy ‘no contingencies’It appears that the time is over.

A homeowner named Joel told KTLA he can’t find a buyer for his property, and now his adjustable rate mortgage is going up.

“We’re worried that now our condo is going to sit on the market and we are going to lose two, three months of vacancy and that’s really going to put us behind,”Joel said.

Agents say they don’t expect housing prices to drop significantly, but with fewer buyers, it could force the market into a standstill.

Yatim also suggests that buyers considering buying a home in the future might consider it a good time to do so, as rates are expected to rise again.

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