The housing market is still competitive, but this fall hasn’t seen the buying and selling frenzy of last year. Rising interest rates are one of the main reasons for this change in the market. The following real estate marketing tips can help you explain the effects of rising interest rates to your sellers and buyers.
Thank you for reading this post, don't forget to subscribe!Encourage buyers to adjust expectations
Rising interest rates on mortgages can have a significant impact on home buyers. Depending on the rate they get, they may need to adjust their expectations when looking for homes. Having a higher interest rate on a mortgage means higher mortgage payments. If your buyers are looking at a certain price point, they may need to lower it to accommodate those higher interest rates.
Talk to sellers about listing prices
For sellers, the increase in mortgage rates can affect how much they are able to get for their home. Your seller may be willing to list your home at a certain price. However, they may have a hard time finding buyers who would be able to afford it. As interest rates on mortgages continue to rise, sellers may need to wait longer to find the right buyer at their price point or lower their listing price.
What to expect from rising interest rates
If interest rates continue to rise, the housing market will experience a downturn as homes become less affordable to buyers. However, a strong economy can lead to a healthy housing market if wages keep up with rising interest rates.
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