NORTHAMPTON, Mass. (WWLP) – Housing prices have been continually on the increase and sales have been down, all while interest rates have been rising.
It seems nothing not even the highest mortgage rates in nearly 23 years can stop the continued climb of home prices. 22News spoke to Murphy’s Realtors to find out how this is impacting both buyers and sellers right now, “The big issue across the board is we don’t have the inventory forcing the competition, forcing prices to continue to go up in spite of the interest rates.”
The continued increase in interest rates has reduced the volume of inventory but not the price of homes. Right now there’s so little inventory that people still have to compete.
“The inventory is down because a lot of people might like to move but they are sitting on 3.5 percent interest rates and they don’t want to double their interest rates. So they are making do with their current house which means that house hasn’t come on the market so there’s no inventory,”
Murphy says that there’s usually this regular churn in the market and people want bigger houses or they want to downsize but now they don’t want to move around and give up the low-interest rates and risk paying more for something that’s smaller.
This demand for houses has caused a demand for rental properties as well. “The demand for rentals is up. It’s very hard to find a decent apartment right now that’s affordable because people can’t move into houses because there aren’t houses to buy.”
Murphy says that for those looking to buy a house to stay in the market as long as they can, get a loan at a rate you’re comfortable with, and it’s better than staying at a rental property.