HOW SHORT, MEDIUM AND LONG TERM EFFECTS ON HOME SALES WHEN RATES RISE! Made Me A Better Salesperson
For many reasons, some, economic, others, related to the epidemic - related, so-called, fatigue, etc., house prices, in most cases, increased to a record amount, or, close to it! Because long artificially created, low interest rates, mortgage rates, at historic lows! Because, for most homebuyers, lower rates translate into cheaper financing, and thus, as prices generally rise, it's essential to use financing to buy! This allows qualified buyers to qualify for more money/loans, as the ratio of monthly mortgage to gross income is artificially reduced! How long will this trend continue, will it be the new normal, will the previous trend/cycle reverse, and how will price be affected in the immediate, medium and long term - all factors to consider! With that in mind, this article will attempt to explore some possibilities, ideas and understanding.
1. Short-term: Since the Federal Reserve Bank announced that they plan to raise rates three times in 2022 (of course, this is before the possible impact and impact of the Omicron version), many feel pressured to act quickly, to take advantage of today's low rates. , before they go up! The three increases would translate into at least a 0.75% higher rate, which would translate into hundreds of extra dollars per month for many mortgages. A few things to consider, and note, this rate of house price growth will likely not continue, especially, to such a large extent! How long one hopes to keep a certain house is something that should be carefully and wisely considered before proceeding!
2. Intermediate-term: However, many believe, the exact timing of any projected rate-of-growth is uncertain! While the Fed has changed its strategy and approach in the past, and/or has changed, in the medium term, potential inflationary pressures, how long economic conditions, and unknown factors related to the pandemic will determine, essentially, what this episode may bring. ! In addition, the attitude, and perceptions of buyers, and their beliefs, etc., this real estate market has a lot of influence!
3. Long term: In the long term, will things recover, as we have seen, often in the past, in what is a periodic cycle between seller, buyer and neutral markets? Possibilities include: a continued large increase; One more - slowly, but steadily - one; some stratification; And/or, we will see, at least, in certain areas, for a while, some kind of falling prices.
Because, no one has the crystal ball to fully know and understand the wisdom, potential, impact and implication! Will you learn as much as possible, so that you can move forward, be wiser and better prepared?
For many reasons, some, economic, others, related to the epidemic - related, so-called, fatigue, etc., house prices, in most cases, increased to a record amount, or, close to it! This allows qualified buyers to qualify for more money/loans, as the ratio of monthly mortgage to gross income is artificially reduced! How long will this trend continue, will it be the new normal, will the previous trend/cycle reverse, and how will price be affected in the immediate, medium and long term - all factors to consider! Short-term: Since the Federal Reserve Bank announced that they plan to raise rates three times in 2022 (of course, this is before the possible impact and impact of the Omicron version), many feel pressured to act quickly, to take advantage of today's low rates., before they go up! A few things to consider, and note, this rate of house price growth will likely not continue, especially, to such a large extent! How long one hopes to keep a certain house is something that should be carefully and wisely considered before proceeding! 2. While the Fed has changed its strategy and approach in the past, and/or has changed, in the medium term, potential inflationary pressures, how long economic conditions, and unknown factors related to the pandemic will determine, essentially, what this episode may bring.! In addition, the attitude, and perceptions of buyers, and their beliefs, etc., this real estate market has a lot of influence! 3. Long term: In the long term, will things recover, as we have seen, often in the past, in what is a periodic cycle between seller, buyer and neutral markets? Because, no one has the crystal ball to fully know and understand the wisdom, potential, impact and implication!
Because, no one has the crystal ball to fully know and understand the wisdom, potential, impact and implication! Long term: In the long term, will things recover, as we have seen, often in the past, in what is a periodic cycle between seller, buyer and neutral markets? How long will this trend continue, will it be the new normal, will the previous trend/cycle reverse, and how will price be affected in the immediate, medium and long term - all factors to consider! How long one hopes to keep a certain house is something that should be carefully and wisely considered before proceeding! This allows qualified buyers to qualify for more money/loans, as the ratio of monthly mortgage to gross income is artificially reduced!
