How Will Higher Interest Rates Affect The Real Estate Market?

/ Serve Realty/

Well 2022 is here and while 2021 saw record low rates, 2022 will see those rates start to go up. How will those rise in rates affect 2022?

So we have known for months now that a rate hike has been long overdue and the Federal Reserve made it very known that rate hikes were in the future. Well 2022 is the future, so now what?

My straight forward response is it will slow things down, but the market will continue to be strong. Maybe not record setting numbers but still strong. Why? The economy overall continues to be strong in the US and especially here in the North Texas area. With that comes very strong buyer demand, and the inventory shortage continues. So with those two items at hand I see the market being able to absorb the hikes to come out strong.

But please know, prices will not rise as quickly, less buyer demand and maybe inventory that is on the market longer than before. Please know these past few years have been beyond strong, and that trend just can not continue. However just know just because the market slows just a bit doesn't mean it is slow by any means, it just means it may still be strong but not record breaking. We will still be VERY far from a normal market.

With the heart of a teacher I look to educate my clients about the process of buying, selling or renting real estate. I strongly feel an informed and educated consumer will be more confident & make better decisions. Have questions about this or other topics, do not hesitate to contact me.

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Luis Cuevas, Broker/Realtor®

Serve Realty

(214) 783-0535

Luis@ServeRealtyTx.com

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