Across the real estate world, there’s a lot of talk and focus on high (and rising – or are they?) interest rates and the subsequent cooling of the real estate market. We talked to some of our recent buyers and they had some really interesting perspective on why they were buying in today’s market DESPITE the high sale prices and interest rates. 

 

They bought because they needed a home. They didn’t want to rent (whether moving back or relocating to Grays Harbor). And, most importantly, they wanted to build wealth through America’s #1 wealth building tool – real estate ownership. 

 

In owning real estate, time is on your side. Sure, buying at a higher price and/or higher interest rate can make your payments much larger than you want – at least at first – but by controlling (aka owning) the real estate you can do several things:

Numbers 1-3 above can’t be done if you rent. Simple as that!

 

 

You and “everyone else” who’s thinking the same way. That means, when they do go down, sure, dollar for dollar things will be more affordable EXCEPT demand (that is, more buyers) will push prices up, therefore you will pay more which likely negates any savings in via lowered interest rate. 

 

If possible, instead of waiting for your dream or perfectly-sized home to be affordable enough (via price/interest rate) and renting in the meantime, consider instead to buy something a little smaller and therefore more affordable. While knowingly temporary, you get to still benefit from numbers 1-3 above, likely giving you that much-needed down payment in the near future on your dream home! 

 

Aren’t we all? On the very rare chance that that happens, everyone else will be eager to jump on those massively discounted prices. People who have owned real estate, built equity, pulled it out and are waiting for those good deals to hit the market. Gone are the days of 35-60k houses throughout Grays Harbor. But in the off chance that they return, the competition will be so, so fierce and you’ll still need to get off the sidelines and do something – in a market with massive bidding wars, which will also be discouraging to many – just like the prices and interest rates are today.