Having been selling real estate in Mason City and North Iowa for longer than I want to admit, I can see the beginnings of a steading climb in the short and long term interest rates. What is a bit disconcerting is that we are still not over the damage that has been done to our over-all real estate market from the crash of 2007. There are still too many homes that are in short sale status, sheriff sale status, and bank owned status. The over-all prices have slowly been improving but only in certain areas of our market. We have way too many older homes that are for sale with little turn-over. I just sold an older home today that has been on the market for over a year. There was absolutely nothing wrong with it other than it was competing with far too many other similarly priced homes.
If our rates continue to increase, the buyers who are now looking at more expensive homes will be forced to drop down into lower priced homes and likely older well cared-for residences So it looks like the interest rates will hopefully level out our market. In truth, I believe some of the younger entry level buyers need to experience the joys and sometimes sorrows of purchasing homes that need improvements. Maybe they will find it’s more rewarding than playing on the internet or sitting in front of the television. Necessity is the mother of invention, so in the race against the interest rates, if you loose the race and can’t afford your “dream home” then maybe you will have won in the end. Wouldn’t it be better to create your own equity?
