Rising interest rates impact Columbus' robust housing market
Homes in central Ohio continue to sell at a record pace. Experts say it took just 12 days to sell a home in May. They say despite the Federal Reserve's historic interest rate hike, home sellers are not lowering their prices, but potential home buyers are being a little more cautious.
The Federal Reserve raised interest rates by three-quarters of a percentage point last week and Sue Woerkom, President of Columbus Realtors, believes that will sideline some buyers.
"I've seen more calls from sellers who want to get their house on the market right now. And I've received a lot of calls from buyers who are readjusting their goggles. You know, they're looking at different price ranges. Now, because of the interest rates, they're considering going a little bit lower than they were a few months ago because the interest rates change their payments,“ said Woerkom.
Homes on the market from the $215,000 to $350,000 range are getting the most attention right now as many first-time buyers flock to buy a home in the Columbus area. But Woerkom said last week's record rate hike has dramatically changed the game.
“I think as a seller what you might expect are fewer offers, and we need to keep that in mind, we need to price your house the way it is competitive on the market. This is not the time to push the market, let the market push you,“ said Woerkom, who has been a realtor for twenty-five years.
The typical interest rate right now is hovering around 6% whereas just a few of months ago it was sitting around 3%.
“Our listings are now sitting a little bit longer. We may still go into multiple offers in niche markets, but the number of offers you're receiving has decreased dramatically,“ she said.