According to Michael Sally, President of the Carolina Trident Association of Realtors, “the historically low level of inventory will continue to impact our market as we move toward the typically busy Spring buying season; inventory has steadily declined since May of last year.” In Mount Pleasant, things are even tighter.
This is valuable information for prospective buyers and sellers, especially in light of the increase to the Federal Funds Rate this past December.
Worries about Increasing Mortgages
With the Fed hike come understandable anxieties that mortgage rates will increase as well, and there is speculation that there could be as many as three more increases before the end of the year. This news has implications for both buyer and seller.
Buyers: Time to Act
Although no one can say for sure, there is a good chance that mortgage rates will rise over the course of the year. This is a great time to invest in a home, especially in a community that has grown consistently and is part of a wider metro area that has attracted national attention for several years now.
Rent prices in Mount Pleasant have only continued to go up, even surpassing mortgage payments in some cases. Because inventory is low, you may not have found your dream house; but it’s a great time to get pre-qualified for a mortgage before rates start increasing.
Sellers: The Ball’s in Your Court
If your mortgage isn’t fixed, you run the risk of dealing with increased payments if rates do increase. Are you prepared for this? Your best advantage is leveraging the small inventory in your neighborhood to get maximum price for your house now.
You may want to ask yourself this important question, “Would I be content to profit on the sale of this house and move to another neighborhood simply because of high demand?”
The one thing we know for certain is that housing markets are never guaranteed. You have options, but because of the special quality of our community, you have the potential to win big this year.
Some experts maintain there won’t be much change in mortgage rates in 2016. The Fed does not dictate these rates after all; this is Wall Street’s job. But, you would be wise not to ignore what happened in December. Whether you’re a buyer or a seller, now could be a great time to make a change.