BRYAN, Texas — The ups and downs of the housing market seem to have settled on a low, as buyers are more and more hesitant of taking out mortgages with interest rates higher than 8%.
- Buying and selling homes have both stagnated and neither buyers nor sellers are in a winning position.
- Buyers are looking into other options, like new construction, for a more economic outlook.
- Experts say the only way out of this market rut is to lower interest rates.
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Being a first time homeowner is a big milestone.
"Like a weight has been lifted off your shoulders," Courtney Ravilla said.
Ravilla and her husband bought their first home in September. It wasn't an easy process. They were searching for the perfect home for more than a year.
“We decided at the beginning that we really would like a lived in home. But that seemed to be what everyone else liked as well. And so we went through several houses that we just absolutely loved, but we would put in an offer and then there would be like 10 to 12 other offers at the same time,” Ravilla said of their buying experience.
But that is not the case now.
“Now that we're seeing interest rates creep up and this past year they hit 8%, that seemed to be the point at which buyers were really starting to give a pause,” Wendy Flynn said.
Flynn is a realtor with Keller Williams Realty in Bryan-College Station.
She said this increase in interest rates creates a surplus of homes on the market.
“And because there's an increase in the number of homes available, that's more choices for the buyers,” Flynn said.
But those choices come at a cost: a higher interest rate.
Still, buyers have options.
“New construction is a great area of opportunity for buyers, because builders have partnerships with lenders and they can offer incentives that a traditional home seller cannot offer,” Flynn said.
So, if you're in the market for a house, remember the market works in cycles.
Just a few months ago, the Ravillas were fighting for a house. Now, homes are sitting on the market without a buyer.
So, whether you decide to wait it out or look for options like new construction or low down payment options now, the market is always changing.