One of the hot topics on the sidewalk at “The Shops” is the real estate market. Brenda Cuoco from Brenda Cuoco & Associates Real Estate Brokerage shared her thoughts on all the recent changes and we thought we would share them with you. #seeyouattheshops
Written by Brenda Cuoco (6/16/22)
Morning!
Thoughts on the Feds increasing rates again, the largest since 1994 & with the most velocity we’ve seen…
What does this mean for the market? It’s not the rates we should focus on, but rather the affordability index. When rates rise the affordability of a buyer goes down, meaning there could be less buyer demand or they drop down in the price range they were affording.
According to the National Association of Realtors, a rate increase of up to even 7% will not “crash” the housing market. As rates increase, buying demand decreases and monthly payments will increase… Home prices will then start to stabilize. This will actually limit some competition for buyers, and sellers will not see as many multiple offers and or offers well over asking price. However, it still remains a very good seller’s market.
This all goes back to the economic principle of supply and demand. While supply isn’t increasing as we expected, the increase in rates SHOULD slow down demand a bit.
All in all, even with the rate increase, homes are forecasted to appreciate 6% through this year… still almost 3x what is considered average or “healthy” appreciation…
Even better, any appreciation is not depreciation .
If you’re looking to become educated or looking for highly skilled agents with strong intellect- Call us today & you’ll be glad you DID!
Out of 2200 Agents at the Board of Realtors #teamcuoco is consistently in the TOP 10 position year over year, if that doesn’t speak volumes I don’t know what does. We love helping the community with their largest investments. You can even call our Broker/Owner Brenda Cuoco direct at 413-214-5365!!
