MIAMI VALLEY – The Miami Valley continues to see increased demand for housing alongside record inventory.
On Wednesday, for the first time since 2018, the Federal Reserve announced it would raise interest rates by a quarter of a percent.
Despite rising interest rates, Remaxx real estate broker Tyler Morton said it was still a great time to buy and an even better time to sell.
“Interest rates are rising, but stocks are still very low,” Morton said.
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Morton told News Center 7’s Candace Price that in a typical market, they’d have about 1,000 homes actively for sale. Currently, he said, they are seeing about 700 to 725.
He said the Federal Reserve’s interest rate hike should help.
“The buyer’s purchasing power has gone down,” Morton said.
According to Morton, purchasing power has dropped about $70 for every $100,000 due to rising interest rates.
“You’re looking at a $200,000 house, your mortgage payment is now about $140 more than it would have been in December or January,” he said.
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Morton said that doesn’t mean it’s a bad time to buy.
“With interest rates as low as they are, it’s still a great time to buy,” he said.
The current market, Morton said, is also good for sellers.
“Sellers are getting the maximum price for their home,” he said. “We always receive several offers.”
The Federal Reserve is planning seven hikes that would take its short-term rate to around 2% by the end of 2022.
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