Oct. 12, 2018
As the leaves begin to change, weather shifts to cold, and cloudy, our local real estate market experiences its usual fluctuations. As you may infer, real estate activity slows heading into the Winter months, adversely decreasing prices, and stunting the market. However, once over, the market quickly regains it's strength, and plows full-force throughout the Spring and early Summer. If you are looking for a home, this current downward trend can be quite encouraging, as prices are slowly falling. Although the market is less competitive now, than in the Spring, one disheartening factor remains; interest rates.
After speaking with my preferred lender, Kelly Naff of Guild Mortgage in Newberg, Oregon, we concluded that interest rates are hovering around five percent. This hypothesis is shared by all, and feared by many. Personally, I have experience my clients decline opportunities in their local market due to, 'high' interest rates. Little to they realize these rates will only continue to rise. It is common though that conventional, and governmental rates will reach six percent by next year. When this occurs, buying power will be significantly affected.
Overall, it is about finding that happy medium, wherein prices are better, and interest rates are manageable. I believe that will take place this Fall and Winter. Rates are continually rising, and prices are often being adjusted downward. If you find a home you like, purchase it.