Here is how low interest rates are impacting our market.
Why are interest rates so low?
To tell you the truth, we don’t know, so the real question is this: Is it a good time to buy or sell real estate?
Along with interest rates, inventory is still low across the board. If you’re looking anywhere under $200,000, good luck. Between $200,000 and $350,000, there’s a little inventory available. From $350,000 to $500,000, there’s some available as well. Above that, there’s some too, but not a lot.
When interest rates are low, buyers’ purchasing power increases and so do prices. In certain parts of Charlotte, you have to be careful about your next purchase if you want to take advantage of these low interest rates.
If you’re not looking to stay in your next house for at least five years, it might not be the best time to buy. With prices sneaking up, interest rates may creep up over the next few years to level out the market. If you do plan on staying in your next home a minimum of five years, you should put at least 10% down to play it safe and keep your mortgage payment low in case the market shifts.
If you’re thinking of selling, 2020 could be your year. Even if buyers aren’t “in the market,” they’re still watching what’s happening. If the right house comes on the market, it’ll be gone the next day.
As always, if you have questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d love to help you.