Tuesday, March 21, 2023

Whether you’re buying or selling a home, higher interest rates are slowing things down


WEST HARTFORD, Conn. (WFSB) – When interest rates were lower, homes were selling for a lot more. With higher rates some sellers have come down but not much as you would think.

“We are still seeing prices go over asking, we still have a lot of buyers out there looking,” said Dawn Gagliardi of Caldwell Banker Realty.

Just a few months ago, if you didn’t bid quickly and high, those looking for a home were out of luck, but Dawn says inventory remains limited and demand is high.

When asked how interest rates have changed the market, Dawn explains “well they were 2% to 2.5% a year or two ago, so that really made buyers incentivized to look. Now we are at 4.5%-5.5% to sometimes up to 6.5%, so it is really making buyers take a second look.”

“Things have normalized as we like to say now to levels that are what people are used to, although they don’t like it much because they were spoiled,” said Betty Feigenbaum of First World Mortgage.

Mortgage brokers say rates are currently hovering around 5.5% and these rates seem to be here to stay.

There is some very good news for first time home buyers, a new state program gives up to 50 thousand dollars as long as you’ve lived in the state for 3 years and live in your new home at least ten years.

It also doesn’t necessarily have to be the very first home. If you sold your home three years ago and are looking to buy again, you may be able to qualify.

Where you’re looking is important. In areas in West Hartford, at one time sellers were asking as much as 20% or higher and now its about 5%.

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