Rising interest rates are making a big impact on the market. With additional rate increases projected, both buyers and sellers who plan to move in the near future would do well to move sooner rather than later.


1. Interest Rates are Lower
Since most buyers finance home purchases, the price a buyer can pay for a home is generally limited by the amount of their monthly mortgage payment. A small movement in interest rate affects a buyer’s purchasing power the same as a large increase in price.

The historically low-interest rates we’ve enjoyed over the past several years may be a thing of the past. Rates have been rising and are expected to continue going up into 2019. As they rise, affordability declines. Buying sooner rather than waiting will enable a buyer to purchase a nicer home now than they will qualify for later.

2. Seasonal Inventory Up
Annual cycles ran late this year. In most areas and price ranges, inventory levels just recently passed their peak for this year. There are still plenty of good homes available to purchase.

3. Year-End Deals
Most sellers who had a reason to sell earlier in the year still want or need to move. Many also realize that this is a good time for them to purchase their next home before prices and interest rates get any higher. Look for ways to create win-win deals. If you can’t find what you want in your price range, bump your search price up a little. You may find a nice home with a seller willing to work with a lower price you can afford.


1. Interest rates are Lower
Interest rates are projected to increase through the balance of this year and into next. Because most buyers finance their homes, higher interest rates reduce the amount buyers can afford to pay. Within any price range, more buyers can afford a home with today’s lower rates, raising the odds of a seller receiving an acceptable offer.

2. Buyers are Still Looking
There is large pool of buyers who either didn’t find what they were looking for this year or failed to win in a bidding battle. Many of these buyers still need a home and are ready to pull the trigger. They are hoping to make a deal before interest rates further limit their purchase power.

This time of year, corporate relocations have an additional group of motivated year-end buyers coming into the market. They will need to find something fast.

3. Opportunity for Nice New Listings to Shine
Although inventory is high for this time of the year, many of the best properties sold earlier in the year. During the next few months, inventory levels and seller competition will be lower than it will be in the spring. The relative shortage of available move-in-ready homes combined with a pool of waiting buyers makes this a good time to sell.