NASHVILLE, Tenn. (WKRN) – Rising interest rates are having a big effect on housing.
Nashville is in the top five housing markets when it comes to inventory and new listings.
Jeff Checko, the director of relocation at The Ashton Real Estate Group, said first-time homebuyers and middle-income borrowers have been hit hardest by rising interest rates.
“It’s created a little bit of a shock wave that we have to see what happens when that settles a little bit,” Checko said.
A new RE/MAX national housing report has Nashville listed as No. 2 in the country for active listings, 148% higher than last year. And when it comes to cities with the biggest increase in new listings, Nashville is No. 5, up 7% from last year.
Checko said he’s getting this question from anxious sellers. “‘Hey, Jeff, did we miss the boat on the best time to sell?’ And the reality is that, it depends. It depends on if you’re moving out of market. Then yes, you’re going to sell for less than somebody would have six months ago,” said Checko. “But, if you’re going to stay with an in-market move, then you might have to sell for a little bit less, but you have more of an opportunity to have choice as a buyer and an opportunity to capture savings as a buyer.”
Taylor Brasel is a senior mortgage banker and assistant vice president with Ameriprise in Franklin. For buyers priced out, she encourages them to consider an adjustable rate mortgage to lower the monthly payment, or use points.
“One point is equal to 1% of your loan amount. So generally, one point will buy down the interest rate about a quarter percent,” she said.
Gone are the days of 2% interest rates, 15 showings a day and waiving inspection fees. Realtors say they are on bated breath to see what happens next with housing.
“There’s definitely less urgency on behalf of the buyer base now and they’re a lot more fickle. So these are signs that things are changing,” Checko said.
Experts predict this freeze on housing will last through the holidays, and they hope to return to interest rates around 5% and a more active market by spring.