Don’t Wait for Lower Rates To Buy a Home in Arkansas

By Kerry Ellison

Over the past 30 years, Kerry has proven herself time and time again by remaining in the top tier of Central Arkansas real estate. As her business grew, Kerry saw the need to start a team to continue providing clients with the best experience possible.

What impact will interest rates have on the market? Buyers and sellers often tell me they want to wait to purchase a home until rates drop. Everyone seems to be waiting in anticipation of what’s going to happen.

The Fed meeting is scheduled for September 15, but it’s not like we’re going to wake up and see a magical drop in interest rates. At most, we might see a half-point decrease or maybe even just a quarter, but that small change won’t do a lot to lower your monthly payment.

The impact of rate drops. What a decrease will do is bring a flood of buyers back into the market. Right now, there’s a shadow group of buyers and sellers waiting for any piece of economic news to tell them it’s time to move. Once rates dip, they’ll all jump back in.

Risks of waiting. For buyers, that means acceleration clauses, paying over asking price, and losing out on concessions. For sellers, yes, you may be able to sell your home for more, but then where are you going to go? Buying your next home in that environment becomes much more difficult.

For move-up buyers, this is actually a great time to buy. And if you’re a seller planning to move, it’s a good time because you can negotiate pricing on homes.

If you’ve thought about making a move in this market, I’d recommend acting sooner rather than later. Waiting on the Fed to cut rates could cost you more in the long run. Don’t hesitate to call me at 501-725-1227 or send an email to info@theellisongroup.com. Let me know how I can help.