Derrick Guevremont, Rochester MN Homes for Sale (Counselor Realty of Rochester)

Spam prevention
Rainmaker
1,032,804
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Investors are not as concerned about interest rates as regular folk looking for a home to live in, in my opinion

Jun 20, 2022 07:26 AM
Rainmaker
801,167
Susan Laxson CRS
Premier Sotheby's International Realty - Naples, FL
Realtor in Naples & Marco Island, FL

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?

Jun 20, 2022 04:52 AM
Rainmaker
912,268
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Jun 20, 2022 05:13 AM
Rainmaker
948,829
Peter Mohylsky. BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

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. 

Jun 20, 2022 04:05 AM
Rainmaker
2,677,058
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Jun 20, 2022 06:10 AM
Rainmaker
795,680
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

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.

Jun 20, 2022 05:11 AM
Rainmaker
4,459,732
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

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!

Jun 20, 2022 04:56 AM
Rainmaker
682,189
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

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.

Jun 20, 2022 12:54 AM
Rainmaker
6,909,398
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Probably not. Investors are paying cash and many rely upon lines of credit.

Jun 20, 2022 10:47 AM
Rainer
346,949
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

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.  

Jun 20, 2022 08:55 AM
Rainmaker
1,332,331
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

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.

Jun 20, 2022 08:08 AM
Rainmaker
1,754,243
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

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?

Jun 20, 2022 07:52 AM
Ambassador
3,130,291
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Only time will tell how the rising interest rates will impact investment groups. I imagine the impact will depend on the various geographic markets. 

Jun 20, 2022 07:29 AM
Rainmaker
2,030,080
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

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.

Jun 20, 2022 06:35 AM
Rainmaker
1,419,064
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Jun 20, 2022 08:49 AM
Ambassador
2,736,128
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

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.

Jun 20, 2022 11:56 AM
Rainer
296,291
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

doesn't seem to be a problem in my market.

Jun 20, 2022 02:21 PM
Ambassador
5,653,085
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Investors generally buy different homes than most buyers I see in the mkt.

Jun 20, 2022 06:23 PM