Categories Baytown

Interest Rate Changes in the Housing Market

interest rate changes in the housing market

Mortgage interest rates are now over 7% for a 30-year fixed mortgage. That means fewer home buyers on the market. Increasing rates means placing mortgages and mortgage payments out of reach for the average home buyer.

Yet sellers are less active this year as well, and investors continue to search for homes. Many sellers are worried about the state of the economy and whether they’ll be able to keep their jobs. Nobody wants to buy a house just to foreclose a year later. 

That means housing price values have held here in Houston, despite catastrophic projections promising that home values would drop. 

One reason is that the inventory is still inadequate to meet the demand. This means there’s still plenty of room for someone who wants to sell their home to do so. It just means you’re going to have to wait a lot longer to do so if you want to sell your home in the traditional way. 

What should you do, as a Houston home seller, in light of this information?

Evaluate Your Timeline and Needs

The steps you should take depends on what your needs are.

If you have time, and the means to keep paying the expenses associated with your home, and can afford to repair your home, then there’s nothing wrong with getting a real estate agent. 

You’ll have a long wait ahead of you, but you’ll sell the house for a higher price. In the current market, the wait could be 2 to 5 months. Keep in mind that many buyers are waiting for lower prices, so you might not get as much as you would have gotten in markets with lower interest rates. 

If you need to sell a house faster, then Houston house buyers like us might be your best bet. While you’ll get less money for the house, you’ll sell it a lot faster. You won’t have to put your money into fixing the house, either. You won’t have to worry about bank approval abruptly ending the deal. 

When you run the numbers, you might well find that you come out ahead. Don’t forget to evaluate any reductions in price you might need to make. 

Get Cash for Your Home

If you don’t want to wait months to sell your house, reach out to Gulf State Homebuyers. We’ll give you a fair offer on your home, and buy it for cash! 

Categories Baytown

Last Quarter of 2022: What it Looks Like for Sellers & Buyers

last quarter of 2022 what it looks like for sellers buyers

The housing market hasn’t gotten any easier for anyone. Q4 of 2022 is looking like a tough market for both sellers and buyers. Mortgage interest rates are at 7% now, and inflation continues to be an issue for the entire country. 

Here’s what you need to know. 

For Buyers

Many buyers will struggle to find affordable housing in Houston. Inventories have remained low, prices have remained stable, and mortgage interest rates have gone up.

Higher interest rates mean higher closing costs, higher mortgage payments, and a need to produce a higher down payment

Many of the buyers who intend to use and live in a home are nervous about buying because the economy seems so uncertain. Avoiding foreclosure remains a major concern. 

For Sellers

Many sellers will have to hold on to their houses a lot longer. The national medium time on market is 50 days. That means paying for the home a lot longer. The higher interest rates could increase the chance that deals will fall through due to banks.  

In addition, cautious buyers are once again expecting fully repaired homes and reasonable prices. The era of getting dozens of offers in less than a week is over. So is the era of selling homes without an inspection, getting off scott free without having to make any repairs. 

If you need to sell fast waiting on an owner occupier to buy the house might not be your best bet. A service like ours, that buys houses for cash and does it fast, might well be the way to go, especially if you can’t afford to hold on to the house for months. That way you can get cash in hand without making repairs or waiting for months. 

Get Help Today 

When you work with us, you can sell your house and close in as little as seven days. You’ll pay $0 in commissions or fees, and you’ll receive a quick, fair cash offer. It’s a risk-free, hassle-free process.

In some cases, we even pay moving expenses! We’re here to help you take the stress out of selling your home. 

Not sure whether selling your home to us is the right move for you? Why not get an offer from us and find out? Work the numbers and see how they add up. You might find out you come out ahead.