How will the rise in interest rates affect your home's value
Channel: Nick McLean Real Estate Group
Date: 2022-04-04

Everyone is calling us and asking, how are these rising interest rates going to affect my home's value in 2022? And we looked into it. A panel of economists hired by the National Association of Realtors predicts that home values will go up 5.7% in 2022. Even Zillow says home values are going to be 6.6% in 2022. 

You might be thinking, interest rates at 5.7%, is still pretty good historically. It is, but that affects your home greatly, especially the people that are thinking about putting their home on the market. 

With higher interest rates sellers can expect a rise in inventory levels. Some homes won't be selling in a day or a week or even a month. Don't expect automatic multiple offer situations and don't expect your offers to come in like they did the past few years.

Can you still get thousands of dollars over the asking price? Has that ship sailed? The window of opportunity is closing for some homeowners. It depends on what type of home you have. 

If you have a high-quality house in a great location, with the right marketing it is still possible to have a multiple offer situation.
But you'll need to target buyers not just in town but out of town also. You also need to find buyers with lots of equity or cash because they're not as affected by the rising interest rates.

Higher interest rates and more inventory mean there will be more competition, and with the additional competition, you will have to make more repairs and the buyers will have more negotiating power. 

Reach out to the Nick McLean Real Estate Group if you are interested in a no-cost, no-obligation home valuation using our marketing. So that you have the data to decide whether or not you should put your home on the marketplace this year.

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Nick McLean Real Estate Group