As you’ve probably heard, interest rates are the lowest we have seen in over a year and a half. This has caused the Central Texas real estate market to shift in favor of buyers and gives them more purchasing power. Many sellers see low interest rates as a disadvantage, making them hesitant to list their homes; however, low interest rates can also benefit sellers.
Let’s dive in!
Benefits For Buyers
Affordability
The most significant benefit of low interest rates is the increased affordability they provide. Lower interest rates mean lower monthly mortgage payments for buyers, which leads to increased affordability and the ability for buyers to afford a more expensive or larger home than they could have been able to afford before.
Accessibility
With high interest rates, many buyers often stay on the sidelines either because they’re unable to afford a home or because they’re hoping rates will go down. Low interest rates motivate more buyers to come back and look for homes, making homeownership more accessible for buyers who might have previously been unable to afford a home.
Benefits For Sellers
Demand
Lower rates bring more buyers into the buyer pool, leading to higher demand and a more competitive market for sellers. The more buyers that are looking for homes, the better chance sellers have of multiple offers and better negotiations. High demand means it’s less likely that homes will sit on the market long, leading to quicker sales and less time on the market.
Profit
Since homes aren’t sitting on the market nearly as long, sellers don’t have to make many (or any) price reductions, leading to higher sale prices. In addition, high demand can often lead to bidding wars, which means more options for sellers to choose from.
If you’re looking to buy or sell, the time is now! If you have questions about the market and if now is the right time for you to jump in, reach out to us at Prism Realty! We would love to help you navigate the current market and answer any questions you have!
