Here’s the impact that rising interest rates will have on home prices.
“Are home values going to drop?” We receive this question almost every day from clients. Rising interest rates have a lot of people worried, but we don’t believe prices will drop. Today we want to share a few reasons why.
As interest rates rise, buyers may have to look at homes priced lower than before since rising rates hurt buyers’ purchasing power. At the same time, rents are increasing due to more buyers being priced out of our market.
Homes are taking longer to sell, but supply is still scarce in our area. Plus, people continue to move here from all over the country. Due to these factors, it doesn’t look like home prices will crash any time soon. Our market is a result of supply and demand, not bad lending practices like in 2008.
Now here’s our fun fact for the day: In Northeast Oklahoma City, there’s a dirt road that leads to a 5,000-square-foot home from 1930. This was best known as the “haunted house” restaurant until it closed in 2015. This restaurant is special to us because one of our favorite dates was at this place. It’s a unique place that will always be a part of OKC’s history.
If you have questions about today’s topic or anything else, please call or email us. We’ll look forward to hearing from you!