Rise in Interest Rates Has Some Benefits for Home Buyers
The rise in interest rates has slowed home sales in the St. Cloud area. That according to Craig Erlichman from Premier Real Estate Services in St. Cloud. He explains the rise in interest rates from as low at 2% to near 7% on a 30 year fixed mortgage has created what he calls a "correction" to the market. He says homes just weren't staying on the market long enough before with competition for most homes that sometimes resulted in bidding wars.
Erlichman indicates the benefits of the slowed market, due to the rise in interest rates, does have some benefits for buyers which include inventory levels are building which allows for inspections on houses, gives buyers an opportunity to negotiate, and gives the buyer time to be selective.
Home values are not coming down according to Erlichman despite interest rates going up. He says it is possible we could see some values decrease with negotiations likely to occur now. Erlichman indicates homes are still selling at 90 to 100% of their list price. He says the amount of time a home is typically on the market now is estimated at 28 days.
Renovations that can improve a value of a home include finishing your basement, (if it is unfinished), adding square footage to the home, renovating kitchens and bathrooms and just adding some curb appeal.
If you'd like to listen to my conversation with Craig it is available below.