Inflation impacting the housing market
SIOUX FALLS, S.D. (Dakota News Now) -Many factors contribute to home sales, whether that be inflation or the general market. Those involved in the process say recently home sales could be shifting.
Even with high interest rates, Ashley Bartholomaus, a realtor for Keller Williams Realty, says the shift could actually make it a friendlier buyers’ market for those looking to purchase a home.
“It’s a great time to buy a home really anytime as long as you have a good plan and right now it makes a lot of sense because even though the rates are higher than they were in January and February they are historically lower than they have been,” said Ashley Bartholomaus, realtor for Keller Williams Realty.
While the housing market has been red-hot for a while, she says there are several factors contributing to the market levelling off: among those are inflation, an economic slowdown, and consumer confidence.
“There is a combination of the highest costs for housing that people have ever seen with rates slightly increasing that slowed the market a bit the last couple of months. However, we’re still seeing a lot of people who want to buy,” said Bartholomaus.
Devin Malmgren is a mortgage banker at Plains Commerce Bank. He says inflation is a contributing factor to rising interest rates.
“Anytime we have negative data come out from an inflationary perspective it’s going to drive down rates or raise rates. So, we’re extremely volatile right now. Rates are up and down,” said Devin Malmgren, mortgage banker at Plains Commerce Bank.
Even with the uncertainty, he says interest rates should not be the deciding factor when looking to buy or sell a home.
“I wouldn’t necessarily focus on interest rates; I would focus on it from an affordability perspective. If you and your family can afford the home, I wouldn’t forgo home ownership,” said Malmgren.
Malmgren wants to advise people looking to buy or sell a home to first do research and work with a realtor or banker for guidance in the process.
Copyright 2022 Dakota News Now. All rights reserved.