In Q1 in Temple, inventory has been incredibly low, prices increased, and interest rates went up. Our market is on fire, and things are changing rapidly. However, could outside factors like the war in Ukraine affect our local market? They may affect it more than you think.
How can a war on the other side of the world affect our market? In case you don’t know, the Federal Reserve has been raising interest rates to combat increasing inflation. Your interest rate is a huge factor in determining your monthly mortgage payment, so when rates increase, it has a big impact on our market. However, I think the Fed might hold off on further rate increases due to the war. I don’t believe the Fed will stop raising rates, but they might slow down their pace while the war goes on.
“Historically, war tends to slow down real estate markets.”
What does this mean for you? If you’re looking to buy a home, you have a little window to lock in a low interest rate before they rise further. Right now, there’s a lot of uncertainty in markets around the world. Historically, war tends to slow down real estate markets across the country, so this could be your last chance to take advantage of how hot things have been recently.
For sellers, I don’t see prices dropping anytime soon. However, demand might start to decline as interest rates increase. If you want to sell your home for top dollar and make a move, now might be the time to act.
I know this topic was a little outside of the box, so if you have any questions, please call or email me. I am always willing to help!
