DELMARVA– Interest rates are around 5 to 6%, almost double from a few months ago.
Marco Smith of Long & Foster’s Maryland & Delaware group says buyers don’t face much competition despite a low supply of available homes.
He says that while there are plenty of buyers, their budgets vary widely, so people in their price range aren’t as important as you might think.
“There aren’t a lot of people in that price range looking,” Smith said. “So it’s not as competitive whereas at the beginning of the year the rates were still very low and people were buying a lot. Now the rates are still low compared to what they were in the past, but people are afraid of what they buy”. I saw because we were a little spoiled with this interest rate of 3 to 4%.
Despite rapidly changing interest rates, house prices remain high.
April Green-Kastor of RE/MAX in Rehoboth Beach says homes are staying for sale longer, but the market is still hot.
“Houses are much more seated than they were six months ago,” Green-Kastor said. “But in our area, we really don’t see any price impact. And we still see multiple supply situations depending on the location of the house and its condition.”
Reid Sterrett’s company, Expert Homebuyers, buys and sells homes that aren’t on the market, often turnarounds.
He says that despite high interest he would buy a house in the area now and it’s a safe bet.
“The reason I think it’s a great investment here is because we always have an influx of people from New York, New Jersey, Philadelphia,” Sterrett said. “When they look at the prices here on the shore, they are still much lower than the prices they pay in their home towns.
Interest rates are expected to continue to rise at least until the end of July. So if you find a home you’re looking for, real estate agents advise you to meet with a lender and see what the payments will be like and see if you can afford it.