Inadequate Inventory and Rising Rates


Data Derivatives…

On its surface, the idea of data analysis is fairly dull. Pouring over lines of numbers and percentages in an Excel spreadsheet doesn’t send too many people’s hearts aflutter. That said, the value of data and what can be derived from it is only becoming more valuable. Predictive analytics from big data analysis is driving not only how companies do business and the government functions, but also how people research, analyze, and decide to buy different products and services.

The Interest of Interest Rates…

So why should you care and what does this have to do with real estate? Glad you asked. If you are gearing up to look for a new home this spring, you may want to start earlier than you think! Low home inventory coupled with climbing interest rates is leading to an early spring market.

Source: FRED Economic Data
The National Association of Realtors is estimating that the 30-year fixed-rate mortgage – which is often used as the gold standard to track home loan interest rates – will be near 4.5% by the end of 2018. This will fuel more people to look for a home earlier in the year, which may lead to even less inventory and more bidding wars between buyers. Not exactly a comfortable place to be, especially if you are looking for your first home.

Passionate Patriots…

While this story may sound familiar – high home prices, fast sales, and meager inventory – your team at Patriot Realty is passionate about this information and ready to help guide you through the buying or selling process. Please reach out if you have any questions, and we look forward to serving you!