1,196,588
Investors are not as concerned about interest rates as regular folk looking for a home to live in, in my opinion
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Greg Large
Grove City, OH
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Bob "RealMan" Timm
Minot, ND
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
823,579
Where I live, the rising costs of rentals has scared away the service workers and now everyone is complaining that they can't find people to work in every service industry here. A big problem when you live in a vacation destination and seasonal second home area! With the price of gas, who wants to drive to a job 30+ miles away that pays minimum wage?
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Lyn Sims
Schaumburg, IL
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Doug Dawes
Topsfield, MA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Carla Freund
Raleigh, NC
921,504
There was little competition between the cash investor and the FHA buyer.
Sellers PREFER fast and easy.
Still, I see very little desire of most FHA buyers to consider a fixer upper. They want the PROM QUEEN.
But they can not afford the PROM QUEEN.
At this moment I not terribly sympathetic to the low end home buyer.
Rising interest rates do not create fast and easy making investors a better option for many home sellers.
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Wanda Kubat-Nerdin - W...
St. George, UT
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Lyn Sims
Schaumburg, IL
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
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Bob "RealMan" Timm
Minot, ND
1,196,912
Complex question with many facets. I think pushback on rising rental rates will help balance the market.
I live in resort area. It is not inexpensive to live here. the bar keep moving up and the price of living here changes rapidly.
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Doug Dawes
Topsfield, MA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Peter Mohylsky, Beach ...
Miramar Beach, FL
2,781,013
Fellow agent had three sales two of which dropped out of escrow because of rising rates. The other sale is going through. The rates rising have the power to influence. To stop? Who can say? If you use Real Estate for a long-term investment, the end result is always profitable. Savvy investors know they can always refinance too thus there is always purchasing taking place
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Wanda Kubat-Nerdin - W...
St. George, UT
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
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Bob "RealMan" Timm
Minot, ND
901,187
Yes. I think so in some cases. The people I see having the most difficult time getting a house now are first time homebuyers and those who aren't as financially secure. So, instead of saving to get into a house, they're scraping by to pay rising rent costs. This lowers their chances of building wealth or having a home that is paid in full when they retire. Some of these people will be more dependent on the government to get by.
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
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Bob "RealMan" Timm
Minot, ND
5,215,388
Investment groups are driven by cash flow and future appreciation. So some areas will see a slow down before others. Those who can't buy may fee forced out of the local rental market. And the cycle goes on!
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
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Bob "RealMan" Timm
Minot, ND
763,783
Rising interest rates will lead to many price reductions. The higher priced homes will ultimately suffer the most as move up buyers won't be able to afford these homes as readily.
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Derrick Guevremont
Rochester, MN
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Jim Patton
Modesto, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Doug Dawes
Topsfield, MA
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Bob "RealMan" Timm
Minot, ND
7,834,945
Probably not. Investors are paying cash and many rely upon lines of credit.
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Derrick Guevremont
Rochester, MN
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Bob "RealMan" Timm
Minot, ND
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Jim Patton
Modesto, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
417,071
Corporate and institutional investors don't use the same loans as individual borrowers and mom and pop non owner investors. Corporate investors are still buying with cash but haggling more. The buyer preapproved to purchase a $300000 home now faces a $265000 house and they are unhappy, many say they are waiting for Godot. The market shifted. The market lowered competition.
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Derrick Guevremont
Rochester, MN
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Bob "RealMan" Timm
Minot, ND
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Wanda Kubat-Nerdin - W...
St. George, UT
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Candice A. Donofrio
Fort Mohave, AZ
1,543,225
We do not often accept escalation clauses, we frequently tell them to grow a pair and pick a price. Most of my sellers care about price, but legacy too. They prefer (but are not limited to) families or at least principle owners over investors, unless they themselves are selling an investment property.
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Thomas J. Nelson, REAL...
La Jolla, CA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
1,844,171
I think that the investors are going to pull back & wait & see what happens.
I'm assuming that your buyers are loosing out. Why? Is it the cash or the price?
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Derrick Guevremont
Rochester, MN
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Jim Patton
Modesto, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Candice A. Donofrio
Fort Mohave, AZ
3,344,906
Only time will tell how the rising interest rates will impact investment groups. I imagine the impact will depend on the various geographic markets.
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Jim Patton
Modesto, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Bob "RealMan" Timm
Minot, ND
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Kathleen Daniels, Prob...
San Jose, CA
2,390,010
Great question Derrick Guevremont . I would guess so but I do not think it will keep families from buying. I think families will seek alternatives such as finding less popular neighborhoods.
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Derrick Guevremont
Rochester, MN
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Wanda Kubat-Nerdin - W...
St. George, UT
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Kathleen Daniels, Prob...
San Jose, CA
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Doug Dawes
Topsfield, MA
1,502,848
No, investors are immune from interest rates, especially the ones in your example. If they are paying cash, there is no interest to worry about. The higher rates will push REGULAR BUYERS out and make it almost easier for investors who may be able to pay closer to list now instead of far above.
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Jim Patton
Modesto, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Candice A. Donofrio
Fort Mohave, AZ
3,125,255
Buyers who require mortgages may have to decrease the 'up to' purchase with rising rates, it depends how high they will continue to trend upward. Investors have cash and tend to buy real estate in any market situation.
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Bob "RealMan" Timm
Minot, ND
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Jim Patton
Modesto, CA
378,367
doesn't seem to be a problem in my market.
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Derrick Guevremont
Rochester, MN
6,392,889
Investors generally buy different homes than most buyers I see in the mkt.