NASHVILLE, Tenn. (WKRN) — Interest rates jumped again recently, and with inflation not under control, they could keep going up. Realtors believe that unknown is creating uncertainty in the home market.
“Really watch the rates because they can change overnight right now,” said Jeff Checko, relocation director with the Ashton Real Estate Group of RE/MAX Advantage.
Checko said that rates jumping up to about 6.75% in the last two weeks threw a wrench in the home market.
“At our firm at RE/MAX Advantage, we have seen a sort of direct reaction to that in terms of slowing momentum and volume of transactions.”
📧 Have breaking come to you: Subscribe to News 2 email alerts →
Take a look at greater Nashville year-over-year, according to new numbers in the RE/MAX National Housing Report:
- Home sales are down 29.7%
- The average home sells in 42 days — 71% longer than last year
- And for new listings, we are second highest in the country — up 45.2%.
Checko’s advice for buyers right now is to keep tabs on the interest rate changes.
“Keep an eye. If they drop half a point or a point, as they seem to go in both directions pretty quickly, that may be the right time for you to strike and you could miss it.”
As for sellers, Checko said to think carefully about selling and losing that historically low interest rate you might have — and don’t be afraid to cut your list price.
“There are situations where sellers are getting bad advice from professionals that just want to earn their business, setting the wrong expectations, and then they have a problem because their house is sitting there and not selling,” said Checko. “If you’re selling a little bit lower, you’re buying a little bit lower, and that can balance out.”