The Advantages of our Rising Rate Market for Home Buyers in Tacoma

Home Loan Interest Rates are on the Rise

In the past six months, home loan interest rates have risen by approximately 2%. The fact is— If you are considering buying a house and using a home loan, what this means is that you may qualify for less than you would have a few months ago, and your current monthly payment may have gone up. While rates may be higher than the rock bottom they have hovered at over the past few years, if you consider them over a longer 10-20 year perspective, they are still historically quite normal, and there are considerable advantages to this time as well!

The downsides of the Strong “Sellers Market”

While a lot of buyers are focusing on the negative, what you might not be considering is the positive aspects of this market change. For the past few years, the market has been a record setting “Sellers Market”, the likes of which have never been seen. If you were shopping or you had family or friends who have purchased, you have probably heard horror stories about crazy bidding wars, dozens of offers, waived inspections, and paying 50-100 thousand dollars over list price. All of which often amounts to a lot of heartache- and high payments. I have represented many buyers throughout this time and while I was quite successful in helping them find a home, the market conditions presented a difficult and stressful time for them.

How This Creates Opportunity for Buyers in the Tacoma Real Estate Market

Because the rates are on the rise, we’ve finally seen a swing in the market- a swing towards normalcy, and a more balanced market between sellers and buyers. These past few weeks have been the FIRST TIME in years that there has been opportunity for buyers in our market. The rise in rates has caused a cooling in buying, and also an uptick in listings, all of which can be a huge benefit for those who qualify to buy currently. I have represented several Tacoma home buyers in the last month and the market change has been a major positive in their house buying journey. Houses that we are seeing that have been listed for over two weeks, are probably going to be a lot more excited for our offer at list price. Sellers are also more open to things like allowing inspections, paying closing costs, and negotiating for fixes after those inspections; All of which was basically unheard of in the past few years. 

Why This Matters if you are Interested in Buying a House

To summarize, yes it's true-  if you are applying for a home loan, and shopping for a house right now you will be locked in at a higher rate. BUT the good news is that you are much more likely to get the house you want, much more likely to be able to negotiate for terms that work for you (if you have a good agent- wink wink), and you are likely able to get it at a much less inflated price due to more inventory, lower overall competition and less bidding wars. Additionally, rates don’t have to be forever, it’s always possible to refinance later when rates go down as they are projected to next year. If you’re looking to move to Tacoma or buy your first home in Tacoma, now is your opportunity. Click HERE to shoot me an email if you want to learn more or start shopping for your new home