Montgomery’s housing market continues despite rising interest rates.

MONTGOMERY, Ala. (WSFA) – Anyone who has bought a home in the past few years has experienced the housing market frenzy. But with the Fed raising interest rates again, sales appear to have slowed.

The Federal Reserve raised interest rates by 0.75% again on Wednesday. This means that everything from car loans to home loans will cost you more.

Ryan Beasley has been a Realtor for 19 years and currently serves as Secretary of the Montgomery Area Association of Realtors. There is only one way to describe the housing market from 2020 to the first half of 2022.

“As realtors, we call it the Wild Wild West,” Beasley said.

With high demand and low inventory, he said, it wasn’t unusual for multiple offers to come in a few hours after the home was listed.

“You’ve seen a lot of things you’ve never seen before.” said Beasley.

But he says the red hot house market is starting to stabilize as interest rates rise. After several years of low borrowing costs, mortgage rates have doubled in the past year. That affects how much home buyers can afford.

“A buyer who could afford a $250,000 home is now looking at a $210,000 or $200,000 home. So their purchasing power is reduced,” Beasley said.

That’s keeping some buyers from buying a home for the time being. Beasley adds that homes are taking a while to sell, but demand is strong.

“In the last 30 to 45 days, when interest rates started to rise, I noticed that days on market started to increase. But there’s still not a lot of inventory,” Beasley said.

With low competition, buyers who lose an auction may get a second chance at homes that have recently been on the market. If you are prepared to face rising interest rates.

The chairman of the Federal Reserve said on Wednesday that the Federal Reserve has an obligation to reduce inflation. He said another increase in interest rates could still be on the table.

Copyright 2022 WSFA 12 News. all rights reserved.

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