We’ve been experiencing historically low interests rates, but that’s going to change moving forward in 2017. The Federal Reserve has already announced that they will raise interest rates this year by 0.5% to 0.75%. For every quarter of a percent rise in interest rates, that decreases a buyer’s ability to buy a mortgage by $25,000. This means we could see buyers losing purchasing power by $50,000 to $75,000 in the upcoming year.
For you as a seller, this means that as the year progresses and interest rates rise, you’ll find buyers who have less ability to buy. For some people, it will make the difference between being able to afford a single-family home versus a townhouse.
If you’ve had any thoughts of selling, 2017 is the year to do it, and you should put your home on the market as soon as possible. Buyers want to take advantage of these interest rates, and because we’re also experiencing a depletion of inventory, they don’t have much to choose from. That means there’s a significant chance that your home will generate multiple offers, which almost always translates into more money in your pocket.
If you’re interested in putting your home on the market or have any other questions, please don’t hesitate to give me a call. My team and I would be happy to help!