On the heels of a record-breaking year for many in the real estate industry, there is a lot of speculation on what buyers and sellers should expect for the Spring market and beyond. As is usually the case, numerous analysts are looking no further than interest rates when predicting how the market will behave in the coming months. While interest rates may seem like a simple way to forecast future market conditions, the many factors currently shaping those rates are seemingly more complex than they have ever been.
In a recent article published by Inman News, Windermere Chief Economist Matthew Gardner examines the effect current events such as the Russian invasion of Ukraine and inflation in the United States could have on interest rates throughout the rest of 2022. Click HERE to read the full article (subscription required).
In summary, Mr. Gardner projects interest rates to continue to rise but not to a point that would create significant problems for those looking to buy or sell this year. While it’s unrealistic to think that the record-low rates of late 2020 / early 2021 will return, it’s important to remember that even modest increases from the high 2%’s will yield rates that from a historical context, are still appealing to buyers taking into account the recent rapid rise in property values.
Interested in buying / selling real estate in Northwest Vermont or wondering how this may affect your investment property or portfolio? For the most up-to-date information on current market trends, advanced analytics and in-depth local insight give us a call at (802) 846-8800 or email us at Team@LipkinAudette.com.