Across North Carolina, the median home value has steadily risen year over year and the market is red-hot, with not enough supply to meet buyer demand. But with rising interest rates looming, can buyers expect the market to slow down? Join Eric as he discusses the potential effects of rising interest rates.
Speaker 1: What type of impact does the interest rates have on property in Chatham county?
Speaker 2: So far, nothing. It hasn’t affected me yet. Now it is certainly going to affect the buyer. I mean, the amount of house you can buy or forward, if the interest rate is three and a quarter versus six and a quarter, I mean, it’s a huge difference. And in the beginning of your mortgage, the vast majority of the payment is just the interest and very little is principle. They’ve jumped up so fast here, I think we’re in a wait and see situation right now. This is kind of like when we were talking about inflation. This is impacting the first time home buyers and the home buyers that would be in the 150, 250, 350 range. And unfortunately we just don’t have that product right now. So, and then we got, we have so much California money, West Coast money, Northeast money coming that we’re in the residential market right now, we’re at 36% that are cash buyers.
So if you’re a cash buyer, I mean, interest rates really don’t matter. And of course in our land game, we’re almost always cash buyer. So it really hasn’t had an impact. I do think, I mean, I think there’s a lot of people that are like locked to lower rates right now. And so there’s still, and we are seeing a little bit of a slow down right now. So maybe the interest rates will have an impact, but gosh, you look at the volatility of the stock market right now. I mean, where’s a good place to put your money? I mean, real estate’s a good place to put money. So as of now, one of the things that happens with these YouTube videos is that, they have a long shelf life and everything. I got cussed out by a lady that said, I said it was $3,500 to get her land cleared per acre. And she called, and it was $4,700 per acre. I was like, okay, but that video was eight years old.
Speaker 1: [So, you I].
Speaker 2: I mean, and so I can sit here now and say, hey, interest rates are not having that much of an impact. This video might not have good shelf life in 2023, because it could have an.