The Feds are raising interest rates once more next week, which means if you’re a seller in our market, the time to act is now.
Today I want to share a quick market update with you.
As you know, the Feds have announced they will raise interest rates again. They’re predicted to raise them next week, and the margin is predicted to be 0.25%. Right now, rates are at about 4.25%, which means after next week they’ll settle at 4.5% for the time being. In the middle of last December, they were at 3.88%.
What does this mean to you if you’re thinking about selling your home? When interest rates go up, prices drop. The average sale price in the Anchorage/Eagle River/Girdwood area has dropped from $366,000 at the beginning of the year to $341,000. That’s a drop of about 6.7%, one of the largest we’ve seen in a long time.
Keep in mind that we’re also in the slow quarter, so some of this is a result of the time of year. Hopefully, that will level out as the year progresses. If you’re thinking about selling your house, don’t wait. Do it before these interest rates rise again and values go down.
If you have any questions or are thinking about putting your home on the market, please feel free to give me a call. I’d be happy to help you!