Rising interest rates have everyone asking – how will this affect my ability to buy or sell a home? We are turning to the experts to find out what we may be seeing in the market. Hi, I’m Tanja Odzak, Our East Bay Home brokered by eXp Realty and I help sort through all the uncertainties in the market and give you facts so you can make an informed decision about your home.
So let’s take a look at the past so we can have a better idea of what our future will look like. If we look back at data from when mortgage rates rose by more than 1%, from October of 1993 provided by Freddie Mac, we see that there was a comparable spike in mortgage rates. At that time we saw no negative impacts on home prices and they still appreciated by 3% that year, though an average of 8% over the six times that this happened. BUT, there was a decrease of 11% in home sales that same year. So many people were likely priced out of buying a home due to market conditions. We are looking at a very different environment though because we are not expected to see the rate increase that we saw from October 93 to December 94 where it went from 2.38% to 9.2%. Generally speaking, we see that overall rising impacts don’t have a large impact on home sales. That’s what the experts are seeing! If you have any questions you can always reach out to me and we can see if now is the best time for you to make a real estate move.
And ask me about my tiered home selling plans where you get to pick which real estate services you want and the fee you pay offering you simplified and transparent choices! Tanja Odzak, Our East Bay Home AND eXp Realty and I’m always here to help. Reach out anytime even if you’ve just got questions.
I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
Why not check out one of my no-obligation, online, On-Demand, virtual Real Estate Seminars?