The Chattanooga Real Estate Monday Market report for July 25th, 2022 will discuss Chattanooga housing market, fact vs fiction. Is it a good time to buy a house? Where are the interest rates going?
Find out all this information and more in this episode of the Monday Market Report.
YouTube Video – Chattanooga Housing Market
Podcast Episode – Chattanooga Housing Market
Chattanooga Housing Market
Interest rates are going up as you have no doubt noticed.
Interest Rates Are Rising
As you notice from the graph below, interest rates have gone from 3.22% up to the mid 5’s this year and it has everyone up in a tizzy. If you look at objectively though, the interest rates are back to a normal amount. The government had used the low interest rates to pull us out of a recession and then to fight against the economy going in a slump due to the pandemic.
Builder Cancellation Rate
When people get worried about something they tend to take no action. As you can see from the graph below, the two highest points of cancellations were at the start of the pandemic where people were worried about the economy in the midst of an unprecedented time and now when people are worried about interest rates and inflation.
Mortgage Rates Predicted
Rick Sharga of market intelligence still thinks interest rates will hold for the next month even though the inflation numbers that were just released were not good.
Housing prices all boil down to supply and demand. When there is more demand than there is supply, the values rise. When there is more supply than there is demand prices go down. Although interest rates do effect the demand due to it being harder and more costly to buy a home, there are still people looking to buy and many of them coming into the market now. Due to that strong demand home values should continue to rise according to experts.
If you are a renter, your outlook is not as good. The rent rates have grown on average every month for 15 months and have become 15.5% higher than this time last year.
Across all rental types, the cost of renting has increased.
If you convert that to dollars and cents, the average two bedroom rental costs more than the average mortgage payment. Not to mention the added benefits of interest write offs, home ownership pride and rising home values, now is the time to make a purchase.
It is not hard to see that with the constant raise in home values and rise in rents, now is the time to buy a home. Even with the interest rates on the rise, now is the time. See what Dave Ramsey has to say below.
If you have any questions about the real estate market or you are thinking of buying or selling a home in the Chattanooga and North Georgia area, please feel free to reach out to us at the Nooga Team (423) 810-9474 and remember, with the Nooga Team, Your Home is Sold Guaranteed or We’ll Buy It!*
