There are three things that that dictate the Real Estate Market right now:
3. Interest Rate
Interest Rates are currently above 5%, and they are going to stay above 5% for a long time.
Perhaps, by the end of the year, they're going to be in the 6%'s.
What are Interest Rates doing right now? Chasing Inflation.
The only way to tame inflation at present is to continue to raise interest rates across the board.
Mortgage rates just happen to be affected by the Federal Reserve, by the Bonds, and by what the Fed is doing with the Interest Rates.
There is an increase in Inventory, however, we're not seeing a spike. We're not building any new houses, although there are some small developments coming in. These developments are not as massive as those down South. This is why the inventory is not going to keep up with the demand of the market. Inventory is not going to get into a level that will start bringing prices down.
Values may not go up as the same rapid rate that they increased over the past two months, yet we're seeing values continue to climb.
What We Buyers Need to Focus On
Marie Kondo once said, "Joy is a very personal feeling. My clients keep items because simply having them and observing them in their home is a source of happiness. They also keep items because of their practicality."
According to a report by the National Association of Realtors or NAR, owning a home that you can freely remodel or style can help bring lots of joy. In fact, many homeowners who were able to do the home upgrades that they dream of have received high "Joy Scores":
The truth is, WE DON'T WAIT TO BUY REAL ESTATE. WE BUY REAL ESTATE AND WAIT.
What you want to do is get off the couch, get pre-approved for that loan, and get yourself into a home before it becomes unaffordable. The greater sense of happiness and excitement can be yours sooner if you focus and invest wisely.
What We Sellers Need to Focus On
You want to get your home on the market before these buyers jump ship and leave Long Island (or whichever city you may be at) and no longer have the capital to buy. Focus on what you can achieve now rather than waiting and losing later.
Check out these 2 videos:
First Video: Kyle Kelly, a Realtor® and Team Leader of The Island Wide Team at eXp Realty talks about the 3 I's
Second Video: Kyle Kelly invites experts from different fields to talk further about the 3 I's affecting the Real Estate market today:
Looking to purchase, sell a home, relocate, or be part of our team? You may also reach us through:
Call or Text: 631-831-0912
FB Messenger: m.me/KKellyNY
Personal Email: KKellyNY@gmail.com
Team Email: email@example.com
YouTube: The Island Wide Team
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