Rising home prices combined with nationwide inflation and rising interest rates “can seed caution in the market,” according to 2022 ABOR President Cord Shiflet.
The fact is the housing market has officially started to turn the table on the sellers. Markets have started to feel the burn of rising interest rates. Markets within the country that do not have a balanced ratio of investors and single-family home buyers are feeling the burn first.
Austin Metro Housing Market is one of the rare exceptions, but it too will eventually feel the restrictive pressures of Feds Monetary Policy. The biggest indicator of this headwind is the fact that inventory has continued a positive trend increasing both in February and March.
How does this affect sellers?
Sellers are now starting to realize the spotlight is no longer on them but on the rising interest rates. This for the buyers “can seed caution” leading to the market adjusting.
How does this affect buyers?
Buyers throughout this housing market had to fight for their chance of the American Dream, but with rising interest rates this dream is slipping from their reach.
How does this affect investors?
Investors enter the market with the intention of positive cash flow. This fact is also getting tested with rising prices and interest rates.
