When people start to see news articles like this one in the Washington Post, they start to ask questions about the real estate market and where it will be in a few months as some of the changes that the Federal Reserve Chairperson is announcing start to take effect. While it is common for people to want to know what is coming next, here are a few things to keep in mind.
- No one knows what exactly will happen. There are many factors in determining the market's course and it is impossible to accurately predict the precise moves that it will make. If it could be done the person who COULD do it would be wealthy indeed.
- Since interest rates are at Ultra-low rates now, we can surmise that eventually at some point they will rise to a point higher than they are today.
- Interest rates potentially climbing typically means that buying or selling now versus then could be advantageous (although your situation may vary and you need to seek the advice of a professional to help you with that decision).
- The Fed interest rate rising does not DIRECTLY impact the mortgage rates that people pay immediately, but it does set the stage for that type of movement indirectly. One does not correlate with other perfectly.
- Potential interest rate climbs and tightening of the support that the Fed has been dumping into the financial markets are a sign that the economy is improving.
And now for the most important part to keep in mind. Real Estate is local. This means that the real estate market in Greenville and the surrounding area is far more impacted positively and negatively by the local jobs market, local business shifts, and local trends than it is by a move in mortgage rates. This also means that the market varies from neighborhood to neighborhood and city to city.
We want to keep you informed of anything that impacts the real estate market. Have a question? Want to know what the market value of your home is? Want to find out about opportunities to move up (or to downsize)? We are here to help guide you through the process. Give us a call today and let's discuss the Greenville real estate market and more importantly your personal situation.