3% Rates - You either got in, or you didn't!

[Alan Asriants]

Today's market is much different from the market we have seen in the past 3 years

Interest rates were at an all time low for too long. This gave many people the opportunity to buy in at historically low rates.

This caused prices to go up, while keeping many people in affordable payments.

Now people don't want to let go of those rates. They are holding onto their properties like golden eggs. I don't blame them!

This is causing the supply to go way down, and in some markets even though the demand is low, the supply is not keeping up with the limited demand.

Anything that is well taken care of, in a nice and desirable area is flying off the market at even higher prices than before

This is making it extremely difficult for first time home buyers and for investors who want to see their numbers works.

Throw in the 7% interest rate, and half of the deals are dead in the water, even below asking price.

This is making it difficult for people to pull the trigger on buying Real Estate.

Another aspect of it is FOMO.

Your buddy bought a 400k house with a 3% rate. It's beautiful, everything you ever dreamed of and you want one too. But now you have to pay 450k for it at a 7.125% rate.

How does that make you feel?

Probably not good...

Until people realize that 3% rates were a "either you got in or didn't get in" kind of thing, people will find it difficult to buy.

Everyone feels good about buying a house at a 3% rate.

So if you're looking to buy a house or an investment property, you have to face reality and what the market is today.

It's likely that we won't ever see those kinds of rates.

Buy the home because you love it and you can afford it.

Buy the investment for a long term hold in a strong area. Make sure it is at least covering your expenses.

Today is not yesterday! And tomorrow you might be thinking: "I wish I bought more Real Estate when rates were 7% LOL!"

Rates can only go down or up. 

If rates go down, you can refinance

If rates go up, you would've wished you took out more debt