It wasn’t that long ago that buying a house was a food frenzy. The seller’s market brought on by low interest rates and the pandemic has left many buyers out in the cold.
“We couldn’t keep listings on the market for very long and we had very disappointed buyers when they couldn’t get it,” said Annette Dardeno Givens of The Charles Realty.
She said people were bidding, not just buying.
“It was just a matter of how much more you asked to pay and there would always be someone else who could pay more.”
Interest rate hikes put the kibosh. A 30-year fixed mortgage in September 2021 was 2.88%. By mid-March 2022, it had increased by more than 4%. Three months later, the rate had risen to 5.75% and is now at 6.29%.
“Rates have more than doubled in the last six months, which has basically slowed refinancing to almost zero,” explained avi Pahuja of the Mortgage Network.
But, he said, it also normalized the real estate market.
“There are opportunities now. Maybe people who couldn’t buy a year or two ago will now be better able to be more proactive and get their offer accepted.”
Dardeno Givens said it was good.
“I was worried about the next generation coming in if it kept happening. That they wouldn’t be able to afford to buy.”