Should I Sell My House As Interest Rates Are Rising?
Considerations for Selling Your Home As Interest Rates Are Rising
If you are a homeowner in Nashville, TN, who is considering selling your home, you may be wondering how the current high-interest-rate environment will impact your sale. In recent weeks, interest rates have risen again, and this has created uncertainty in the real estate market. In this article, I will explore the impact of high-interest rates on home sales, buyers, and sellers in the Nashville market.
Should You Sell Your House When Interest Rates Rise?
If you are thinking about selling your home in Nashville, it is important to consider whether now is the right time to do so. When interest rates rise, it can make it more expensive for buyers to obtain a mortgage, which can reduce the pool of potential buyers. This is especially true the higher the price of the home as it limits the number of potential buyers in the buying pool pool. However, interest rates are just one factor that affects the real estate market. Other factors, such as the economy, job growth, and inventory, also play a role.
In Nashville, the real estate market has been strong in recent years, with a high demand for homes and a low inventory of available properties. This has driven up home prices at a fairly steady clip as compared to some markets in the United States where values have stagnated or dropped. Even with rising interest rates, there is still a high demand for homes in Nashville, and there are many buyers who are eager to purchase a property in our city.
Even with rising interest rates, there is still a high demand for homes in Nashville, and there are many buyers who are eager to purchase a property in our city.
How Do Higher Interest Rates Impact Buyers and Sellers?
Higher interest rates can impact both buyers and sellers in the real estate market. For buyers, higher interest rates mean that it is more expensive to borrow money to purchase a home. This can make it more difficult for some buyers to qualify for a mortgage, and it may also reduce the amount of money they can afford to spend on a property.
But even Dave Ramsey says it’s a good time to buy: “Well interest rates are up…Buy the house. If interest rates come back down, refinance. But don’t ‘not’ buy waiting on interest rates to come down. Just refinance the mortgage if interest rates come down. This is the best time to buy a house in the next five years.”
For sellers, higher interest rates can impact the number of potential buyers who are interested in purchasing their home. If fewer buyers are able to qualify for a mortgage, there may be fewer offers on the property, which can reduce the sale price.
Is Now a Good Time to Sell a House in Nashville?
If you are considering selling your home in Nashville, it may be a good time to do so. The real estate market here in Nashville has been strong in recent years, with a high demand for homes and a low inventory. If you are thinking about selling your home in Nashville, it is important to work with a knowledgeable Realtor who can not only provide you with information about the Nashville market, but also discuss your future plans and help you determine if now is indeed best time for you to sell.
Ultimately, the decision to sell your home in a high-interest-rate environment will depend on your individual circumstances and goals. If you are looking to downsize, relocate, or take advantage of a strong seller’s market, selling your home may be a good option for you. However, if you are comfortable staying in your current home and waiting for interest rates to potentially go down in the future, that may also be a viable option. Most experts agree, however, that the 2-3% rates of a few years ago are unlikely to come back anytime soon–and may actually not come back in our lifetimes.
No matter what you decide, it is important to stay informed about the real estate market and work with a Realtor who can guide you through the selling process. With the right information and guidance, you can make the best decision for your unique situation.
Let me know if you have questions or if I can be of help to you or anyone you might know. Also be sure to follow me on Instagram and YouTube for more Nashville real estate and real estate investing news.
Stephen Parker, Realtor® & Real Estate Investor
Buy, Sell, Invest, Relocate
Call/Text: (615) 829-6410
Greater Nashville Realtors – This is the official website for the Greater Nashville Association of Realtors. It provides information about the local real estate market, as well as resources for buyers and sellers.
Nashville Real Estate Market Report – This is a monthly report from Zillow that provides data on the Nashville real estate market, including home values, inventory, and trends. (These values are usually behind and may fluctuate wildly from week to week or month to month based on historical data. Please have a professional report run by a human in order to ascertain your property’s actual value!)
How Interest Rates Affect the Housing Market – This article from Investopedia provides an overview of how interest rates can impact the real estate market, including home prices and affordability.
Selling a Home During Inflation – This article from Forbes offers insights into how inflation can impact the real estate market, and provides tips for sellers who are considering selling their home during a period of inflation.
Nashville Business Journal – This is the website for the Nashville Business Journal, which provides news and analysis on business and economic issues in Nashville and the surrounding region.
How to Choose a Real Estate Agent – This article from U.S. News & World Report offers tips for selecting a real estate agent, including what to look for in an agent and questions to ask before hiring one.
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DISCLAIMERS & DISCLOSURES
For education & entertainment purposes only. Stephen does not provide legal, tax, or investment advice and nothing posted, linked, or referred to here should be construed as such. Please consult with your attorney, accountant, and/or tax advisor for advice concerning your particular circumstances.