The housing market is still competitive, but this summer hasn’t seen the same buying and selling frenzy as 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 increasing interest rates to your sellers and buyers.
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 might need to adjust their expectations when looking for homes. Having a higher interest rate on a mortgage means having a higher mortgage payment. If your buyers are looking at a certain price point, they might need to lower it in order to accommodate those higher interest rates.
Talk to Sellers About Listing Prices
For sellers, rising mortgage rates can affect how much they’re able to get for their home. Your sellers might have their hearts set on listing their home at a certain price. However, they might have a harder time finding buyers who are able to afford it. As interest rates on mortgages continue to rise, sellers might need to wait longer to find the right buyer at their price point or lower their listing price.
What to Expect with Rising Interest Rates
If interest rates keep going up, the housing market might experience a slowdown as homes become less affordable for buyers. However, a strong economy could lead to a healthy housing market if wages keep up with rising interest rates.
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