ROCHESTER, N.Y. (WROC) — Summer is usually the busiest time of the year in the real estate business. But with interest rates on mortgages rising, driving up total prices, things could slow down.
Typically, the housing market operates in waves with more sales going up and closing during the spring and summer. But that competitive field has not let up over the last year. Things could change going into this summer with today’s market prices driving people away and bidding wars dragging sales on.
In the past 12 months, Andrea Mascitti and her partner at ReMax Realty Group have sold 33 houses. The most annual sales she’s ever made in her career. But coming into this summer things could change with more sellers offering delayed negotiations to see who will pay the most.
“It gives you the most opportunity for people to come through the door,” Mascitti said. “And that’s where you’re seeing your bidding wars like $10,000-$50,000 over asking because everybody knows that offer is due.”
Realator.com shows that the median price for a home in the Greater Rochester Area is nearly $225,000. Spending less than two weeks available on the market. But after factoring in inflation, they’ll then have to pay about 5.8% interest on their mortgage. Driving more homebuyers away from the market.
“Last year I think it was like 3.25% and we’re really just coming back to our normal interest rates,” Mascitti said. “People are just upset maybe because they have to buy a little less of a house.”
“Inflation is a big part of it and the rates were just historically low for so long,” Real Estate agent Mark Zambito of Zambito Realtors said. “We knew that couldn’t keep up that way. I think just because it was in the 2% range for so long we kind of got accustomed to it.”
Local realtors like Andrea say the Greater Rochester Area still has about 500 fewer homes on the market than during this time last year. But even with supply not meeting demand on top of higher interest rates, buyers can still find their dream homes with patience and finding the right bank.
“Contact a realtor who can advise them with a person that they know they feel confident to steer them in the right way,” Mascitti said. “Get their credit in order and make sure their ducks are in the right row. Then they’ll be able to steer them.”
As for those trying to sell their homes, experts urge you to figure out the median price range your property is worth and set rates there. This will draw more interest from a variety of people willing to bid on higher offers to give you a bigger profit in the sale.
Even though interest rates on mortgages have jumped again with the total price of property values, many options in homebuying are still more affordable than renting in the Greater Rochester area.