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        <title>DFW Real Estate Blog</title>
        <link>http://www.texasnewhomerebates.com/blog/tags/sell-your-dfw-home/</link>
        <description>Dallas-Fort Worth New Homes, Find DFW home builder sales promotions, price reductions, and housing news.</description>
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        <author>mike@askinsrealtygroup.com (Mike Askins)</author>
        <title>Interest Rates are Rising | Will Housing Market Soon Correct?</title>
    <description> <![CDATA[ 



Of course, I dont hold tomorrows economic headlines in my hands, but on a historical basis, the U.S economy isnbsp;long overdue for a correction, and who knows what this so-called RESET will do. Then the 2020 pandemic triggered a pronounced wave of extraordinary inflationnbsp;and an unprecedentednbsp;dislocation of the worlds critical supply chains that still haunt our markets. 


Huge government bailouts and emergency spending soon followed adding helicopter money to an economy whose factories were ordered to curtail operations and that triggered todays crisis of inflation caused by too much currency chasing too few goods. How come our so-called experts suddenly seem to be anything but experts? 


Will Sentiment Change from Easy to a Tighter Moneynbsp;Supply? Will Housing Market Soon Freeze-Out?


Last fall, while still in the depths of a COVID emergency, the Fed began signaling they would start raising borrowing rates and stop bond purchases. I am not 100 convinced this will work without serious repercussions. Still, the market bias on mortgage rates is up a noticeable half to three-quarters of a point and rising sincenbsp;that announcement, but the Fed has yet to act on raising its benchmark interest rate officially as it watches financial markets speculate higher based on Fed-talk. 


Just recently, the Fed has signaled an even more aggressive posture with rate hikes, but will they act officially, and if so, just how high will rates need to go to effectively stop and maybe reverse some of the damage caused by inflation? Keep in mind during the 1970s and early 80s shock, interest rates hit 20, home prices declined for a period, and home sizes became smaller to accommodate the sizeable monthly interest payments going to the banks. Once markets stabilized, rates fell, resuming a measured annual inflation rate, and home prices once again began to gradually rise as a result. 


Historically, rising interest rates trigger recessions, whichnbsp;is bad for employment, stocks, businesses, housing, government debt repayment, and in 2022, a much-needed supply chain recovery. I am not sure the Fed will have the stomach for the economic conundrum high rates can trigger, not to mention a probable government default. Still, with so many unknowns just ahead, selling now might be your last opportunity to sell at what may be a market top. 


Whether 2022 turns out to be the quiet before the storm, or another step on the inflation ladder of rising home values. January MLS data shows that home prices are still rising (find out your homes value), supply has fallen, and demand is white-hot. At this moment in time, one just needs to be aware that rising rates could soften demand and home values as inventories increase.












The key concern for sellers is this; once the housing market enters a correction, no amount of Realtor marketing, open-houses, or yesterdays COMP Reports will help sellers capture yesterdays prices.nbsp;


Getnbsp;Traditional Full-Servicenbsp;Listing Experience @ REDUCED Commission Rates YOU Retain the MOST Equity Possible When Younbsp;SELL With Us


In 2021 ARG helped our listing clients earn many tens of thousands of dollars over our MLS asking price. Early 2022 continues this trend, but with interest rates set to rise during the year, markets will come under increasing pricing pressures. Its never easy to sell, it is a lot of work, but if youre looking to capitalize on todays higher prices, listing and selling sooner, stands to help you capture top dollar.


 If youre interested in selling while conditions remain favorable for sellers? Call Mike at  for additional information or fill out the contact form below and well contact you.nbsp;nbsp;





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    <pubDate>Mon, 10 Jan 2022 14:57:00 -0600</pubDate>
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