Federal Reserve Raised Interest Rates
The Federal Reserve has raised interested rates .25% and expects to raise them two more times in 2017 for a total of 1%.
They will most likely stay level for 2018 and hopefully we won't see a recession after that but only time will tell. For now we
deal with the rates we have and what that just did for our real estate market.
For buyers, it's time to buy but the market is moving so fast that inventory is next to nothing. So, get out there, get qualified
and get under contract and locked in before the rate goes up again. When we get to that 1% mark here is what it is going
to happen to a buyer's bottom line.
A 1% increase for a $300,000 loan is a payment increase of $250 per month or $50,000 LESS IN QUALIFYING!
So a $350,000 buyer will become a $300,00 buyer this year.
A $200,000 buyer will only be able to buy $165,000.
A $150,000 buyer will only be able to buy $120,000.
For sellers, it's time to sell. Losing a group of potential buyers will keep houses on the market longer in some higher priced
subdivisions. For some neighborhoods, especially those under $300,000 the inventory will be so low that buyers will be in
bidding wars for properties. If you are thinking about selling now is the time.
First and foremost have a professional analyze (appraise) your property to price is correctly and get as many people in to
see it in the first few days. The professional will guide you to choose the best qualified buyer to insure that the sale will go
through. The contract needs to be followed by dates for inspections and bank appraisal and proper legal disclosures have
to be made. A successful transaction is not just closing but also being protected from future legal action from an unsatisfied
For more information on real estate sales, rentals or property management contact me.
Let my 20 years of experience work for you. 321-458-8352
|Elisabeth "Liz" Logan
919 Brookview Lane
Rockledge, FL 32955