What Do Rising Interest Rates Mean for your New York Home Sale?

During the pandemic, interest rates on mortgages and other loans hit record lows, fuelling demand for homes in New York and across the country. But as inflation worries have grown, the federal government has been steadily raising interest rates for the past several months. And most experts agree that we will continue to see them rise in 2023. Higher interest rates make it more expensive to buy a home. So what do rising interest rates mean for your New York home sale? Let’s take a closer look.

Demand has cooled

Over the last two years, the real estate market in New York has been hotter than ever. Record low interest rates encouraged buyers to flood the market. Yet sellers remained more hesitant to list their homes for sale amid the uncertainty of the pandemic. This created a market that greatly favored sellers. But now that rates have risen, demand has cooled. If you’re considering selling your New York home this year, then be prepared for fewer potential homebuyers. With less competition, buyers will have more room to negotiate both the selling price and the terms of the deal.

Listing price is more important than ever

You’ve probably noticed that home values have risen substantially in New York over the last couple of years. High demand fuelled bidding wars and many sellers received multiple offers that were above the listing price. In today’s market, it’s less likely you’ll receive dozens of offers. That makes it more important than ever to price your home correctly from the start. While sellers are still getting excellent returns on their investments, setting the right asking price will jumpstart the process and lead to a quicker sale. Research comps in your neighborhood and work closely with your agent to determine the listing price of your home.

Evaluate your offers carefully

It can be tempting to accept the highest offer on your New York home. Everyone wants to make as much money as possible from the sale. But it’s crucial that you carefully evaluate all the offers you receive. Unless a buyer will be paying all cash for your home, then they should be pre-approved for a mortgage. You’ll also want to scrutinize those pre-approvals to ensure they are current. Some buyers’ pre-approvals may be based on lower rates that no longer qualify. Confirm that the pre-approved mortgage was based on current rates. Otherwise, you may lose time working on a deal that will ultimately fall through.

Contact Keller New York today

One of the best things you can do if you’re selling your New York home in 2023 is to work with a professional real estate agent. An agent with expert knowledge of both your neighborhood and the current market conditions will help you sell your home quickly for a good price. If you’re ready to list your New York home for sale, then contact the Keller New York Bronx office at 718-697-6800 or the Eastchester – Scarsdale office at 914-713-3270. Our team has expert knowledge of New York real estate and can help you reach your home-buying goals. Contact us today!