Real estate news is big this week as the FED’s have agreed that they are done
raising the rate for the immediate future, and there may be some very small
adjustments moving rates down in the first quarter of 2024. This should be good for our
Hopes are high to see some major adjustments, but that is very unlikely. Stability
is coming, and everyone is ready for it, it just will unlikely meet the hopes of consumers.
I feel very strongly that if you can get a loan and your interest rate is anywhere from
5.5% to 6% you are in a good position. Consider that if the going rate is 6.5% you may
need to buy down your rate to get to 5.5% and that is the wisest way to combat the
Just this seemingly minor adjustment changes most mortgage payments a
couple hundred bucks a month! That’s a big budget saver and will provide a lot of relief
to our wallets.
In other local real estate news, rent rates are dropping. This is likely due to
tenants renewing current leases and staying put, causing a large surplus of homes
available for rent. Additionally, most renters turn into buyers, so the higher rates affect
As a landlord, you may have to reduce rent and offer some credits to application
fees or waive other expenses to find a tenant to occupy your rental. Also be prepared for
some possible vacancy dates, something that we generally never see here in Augusta.
If you are in the market to buy or sell, it's time to reassess your expectations for
how quickly a home will sell. Our market is still stable, but it is taking 30-75 days to sell
instead of the hours it was taking in the past few years.
This brings us to a more balanced market. As a seller, you will need to be more
diligent getting your house ready to sell and be willing to price lower than you may have
anticipated. Buyers are looking for and expecting a deal, since the rates have increased
so rapidly, and that's who you will need to appeal to when you sell. For most price
points, we have a 2 - 3 month supply of homes available today. As spring approaches, I
expect that to jump, and if the interest rates have not been corrected yet, plan to wait on
a buyer OR price below all your competition.
It feels like we are waiting on the groundhog?! If the anticipated rate drops come early in the year, expect to see a ton of movement, but buyer and seller beware, if the rates stay until the summer, it will be a long and miserable spring.