It seems like home buyers and real estate professionals are in the same boat sailing and in unchartered waters. I refer to it as the “double whammy”.
You’d have to be living under a rock to not know what has happened to mortgage interest rates – they’ve just about doubled. Simply put, a home buyer can buy much less house than they could a year or more ago. Paying more for less doesn’t feel good to anybody and many, many buyers have halted their house hunting.
Those buyers who are still in the market have fewer home choices. Many potential sellers have 30 year mortgages in the 3% range. Instead of moving up, home owners are staying put. Why sell and buy a lesser home at twice the interest rate?
Double whammy: Lack of affordability and lack of inventory.
If you are thinking of selling, I’d suggest that you hire a real estate professional you feel comfortable with and don’t over price your home. There are fewer buyers and some folks are cash, thus making interest rates a non-issue.
If you are considering buying, I’d suggest you work with an agent you like and be patient. Expect bumps in the road like being beaten out on offers or sellers unwilling to negotiate repairs. The rewards of home ownership are worth it.
Olympia Real Estate Blog 