Higher Interest Rates: Opportunity in Disguise
The talk of the Chattanooga real estate market has been all around the recent rise of interest rates, often viewed as a market obstacle- but a closer examination of the underlying economics reveals that the current environment is significantly reducing competition, offering unique advantages for buyers and investors who are choosing to stay in the market for property.
The Impact of Higher Interest Rates from Every Angle
For Home Buyers: High interest rates are causing many would-be buyers to exit the market, leading to decreased competition amongst buyers, as the buyers who are committed to acquiring a property during this time begin to move into a position of leverage to negotiate with sellers for a new home.
For Sellers: Sure, demand might be trending downwards, but sellers can look forward to working with a new tier of buyer- one who is motivated enough to stay in this market to get the deal done, without all the noise that can come during a time of a market surge.
For Investors: The homebuying slowdown is making the rental market heat-up, making it a the perfect time to consider purchasing a rental property.
The Impact of a Drop in Interest Rates
During a time of where higher interest rates begin to deter buyers- many will choose to be on the sidelines during this time and just “wait” until the interest rates drop. While understandable, it is worth examining what would happen during the next sudden drop of interest rates:
Market Craze: It’s just the truth. A sudden drop in interest rates would cause the housing market to heat up fast, causing a surge of buyers to jump back into the market, creating a highly competitive environment amongst buyers.
Auction Effect: With an increased buyer pool, buyers can expect to be positioned against each other, as sellers take back the leverage and create an auction effect to drive the sale price of their home-up.
Price Gamble: Holding out for lower interest rates? In the long run, a high home price could hit your wallet harder than a high interest rate. That's because you can buy a house at a lower price now with a higher interest rate and later refinance to a lower rate, but you can't negotiate down the price of your home after purchasing it.
The Evergreen Property Group Advantage in this Market
Whether you are a buyer who is looking to take advantage of this time with lower competition, or someone who is committed to remain on the sidelines during this time, what we care about at Evergreen Property Group is that we empower each of our clients with the information they need to make sound decisions as we incorporate some of the following strategies during this time:
Local Know-How: We've got Chattanooga's real estate market down to a science. Trust us to listen to your needs and guide you to the exact deals that make the most sense for you.
Negotiation: During a market like this, let the Evergreen Property Group negotiate on your behalf, so you get the best deal possible.
Future-Proofing: No matter what the interest rates do, investing in the right property can set you up for a life of more stability, even if the market shifts again.
Hidden Treasures: One thing that sets the Evergreen Property Group apart is our relationships in the industry, that lead to opportunities to gain access to properties that are not listed for sale. Seen everything- and want to see something you haven’t? The Evergreen Property group is committed to helping you find deals that are not available to the general public.
In summary, the current market has more layers than meets the surface, with an environment of that offers more leverage to current buyers and fewer distractions for sellers. To learn more about the current market, and specifically how it could impact you, connect with Jeremy Parker and the Evergreen Property Group discover the potential opportunities that make the most sense for you.
