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An Interesting Side Effect Of Buyers Being Slightly Pickier Given Higher Mortgage Interest Rates |
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 OK, see if you can follow me on this one... When mortgage interest rates were low (below 4% for a while) buyers could afford most houses they wanted to pursue, competition amongst buyers was fierce, and buyers were willing to compromise on some of the ways in which any given house wasn't quite the perfect house. If it was good enough, they would very likely make an offer. With mortgage interest rates now being quite a big higher (above 6%) buyers can't afford as many houses, and they are often (reasonably) being a bit pickier about how well a particular house fits their needs and desires. If they're going to spend *that much* on a house payment, they want it to be a pretty darn good fit for what they want in a house. Here's an interesting side effect of this shift... Before... most or all houses would rapidly have offers, and often have multiple offers. Now... some houses aren't getting many offers at all, and some are getting a TON of offers. The houses that are the most widely appealing to buyers are feeling "just right" to so may buyers that they are generating lots of offers. The houses that are mostly appealing to buyers but have some "flaws" or some "not quite right" features in the eyes of some or many buyers are seeing fewer offers, or slower offers, or no offers. I understand a buyer's logic in this type of a situation... monthly mortgage payments are high right now given higher home prices and higher mortgage interest rates... so you want to love the house you intend to buy. Recent Articles:
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
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