I spoke with a homeowner the other day. In response to our recommended price for selling their home in today’s market, he and his wife said they thought they wanted to wait for the spring time to put their home on the market.
They weren’t in any hurry. “So you’d rather wait to see how much higher the interest rates are going to go up? And you want to compete with more homes on the market?” I explained to this couple that putting their home on the market is better to do it now rather than even a few months down the road.
Interest rates are going up. Interest rates are still at a phenomenal low rate now in comparison to years past, but the predictions out on the horizon are stating that interest rates could go up to the 4’s by the end of the year. The other key component to think about is the lack of homes on the market. We have agents in our office who have buyers who want to buy, but the lack of inventory is prohibiting them from finding the right home.
There’s talk of appreciation of homes slowing down this year. The experts are predicting single digit appreciation as compared to the double digit appreciation we have seen in the last year and a half. Do I think we are in a real estate bubble? Absolutely not, because I do think that Prescott, AZ is a somewhat sheltered real estate market.
If you have any questions or want to talk about the market value of your home, please call us, Yamauchi Real Estate, 928-771-1111.