High tide or low tide?
Have you heard the saying, “A rising tide lifts all ships”? Well, does it? On the water, yes. How about real estate? Rising property values may raise home equity and may tempt more to sell, hoping to pocket this potential equity. The Spokane market has “lifted” a lot recently, including a lift in mortgage interest rates. Does this “rising tide” still lift all? Not really. Rising interest rates lower a buyer’s purchasing power. Low inventory has created a seller’s market, but if mortgage rates keep rising, fewer buyers can afford a home. If this trend continues, we may see the market begin to rebalance. With fewer buyers in the market, sellers may no longer enjoy multiple offers above the listing price. 2018 may still be a good year for Spokane real estate, but it may not keep pace with 2017. Depending on whether you’re buying or selling this year, or both, be sure to know what the market is doing, and have a solid plan in place on how to accomplish your real estate goals.