High Interest Rates Impacting the Buying Power of Bend Homebuyers
Although the 30 year interest rate has moderated a bit from its high of 7.08% hit November 10, 2022, the rapid increase in mortgage interest rates we have seen since the beginning of 2022 has greatly impacted our buyer's purchasing power. Many buyers are regretting that they didn't buy several months ago before rates rose to the levels they are now. But is it really cheaper to buy a Bend home today than it was six months ago? Let's look at the true difference between these two markets and see what the numbers actually say.
In April, we were still living under high demand for Bend homes and a $500,000 property hitting the market would often generate multiple offers, pushing the price up; a final price of $550,000 was common. Today, a $500,000 Bend home can remain on market for a while and serious sellers are entertaining offers, often willing to sell for less than asking price; a final price of $475,000 is not uncommon. When we figure the difference between the two scenarios, with 10% down in each case, the monthly payment is the same, despite the increase in mortgage interest rates. In today's market, sellers who need to sell are willing to entertain offers, negotiate repairs, and take less than asking price. Another positive for buyers, the type of property hitting the market today at $500,000 typically has more features and is what we would consider a more desirable home than that which hit the market six months ago. The overall asking price of Bend homes has been declining since earlier this year in response to our changing market. For Bend homebuyers, this creates great opportunities to buy and negotiate the sales price, despite higher interest rates. When interest rates drop in the future, Bend homeowners who have purchased with high rates can refinance and obtain a better monthly payment.
If you have considered purchasing Bend real estate, but have questioned doing this with the current market, give us a call at 541-323-2779 or connect directly with your Bend Premier Real Estate broker. You may be surprised to find what you can afford to purchase.
