Q. Interest rates are rising now, and I'm concerned. What's going to happen to my home value now?
At Williams Realty Partners, we’ve been anticipating this market shift for quite awhile, and preparing our clients for it. A correction is absolutely necessary, and will help to stabilize runaway home values. But a long-range perspective is crucial at these junctures, especially when all you read are panicked headlines like “biggest hike in interest rates since ‘87!!”
Over the long term, real estate averages a 4% increase in value per year. That appreciation in value won’t stop.
In York county, median home sales have experienced a whopping 35+% increase since 2019. Any correction will not erase gains like that.
There is still a low inventory of homes for sale. Your house will still be in demand.
As an example of the above numbers in real life, let’s say you had a house in Kittery or York that you could have sold for $415K in 2019. You decided not to sell then, and in early 2022 you could have put it on the market for around $565K. Not a bad gain for a little over 3 years!
Now a correction comes - with a correction defined as the loss of 10% or more of an asset. Early 2023 rolls around and a great new job means now you're definitely moving. Rest assured that your house isn’t going back to 2019 pricing. You’ll still be over $500K and - bonus - because of the market correction and rise in interest rates, you won’t be paying $1000 for a dozen eggs due to inflation!
So don’t panic - headlines get people to read, and the scarier they are, the better. All real estate is cyclical, and prices will not be dropping off a cliff. Our housing shortage won’t be fixed in the near term, so any house in our area will continue to hold a strong value.
Troy Williams has been the #1 agent in York county since 2012. His work ethic and unmatched expertise and knowledge of the local real estate market keep him consistently one of the top realtors in Maine. His office can be reached at 1-207-351-8188.
"Ask Troy" and other articles focused on New Hampshire and Maine real estate and area information are featured monthly in the Williams Realty Partners newsletter Connect; if you'd like to receive the newsletter please email jenna@williamsrealtypartners.