ANKENY, Iowa — Over the last two years the housing market has been in a frenzy with buyers and sellers trying to take advantage of the timing.
This summer the Federal Reserve raised interest rates and now they are close to 6 percent. The rise of interest rates is something one real estate agent believes has frozen up buyers for the time being.
“I would say the interest rates have definitely impacted people. Their buying power is a lot less,” said Tim Scheib, a realtor with Scheib Real Estate. “I haven’t personally had anybody not buy a home because interest rates went up. But I have had people maybe change their price by just $10,00.”
Real estate agents in the metro have said that the month of August was slower in comparison to the last two years. Some fear that with rising interest rates and high prices of goods that there is a recession looming, but Scheib views the slow August as completely normal in years past.
“Typically in August we have a slow down and then usually mid-September things pick back up. But this last August it’s been a little bit slower I think the interests rates shocked people,” said Scheib.
Another agent agrees with Scheib’s sentiment about August and she believes that the slow month is actually a good sign.
“I think I like to use the word correction because for two years we haven’t had that correction and now we’re correcting the market,” said Pennie Carroll, a realtor with Pennie Carroll & Associates. “Our brokerage here I take the facts and figures from this year and compare them to 2019, we’re blowing it out of the water.”
The inventory of homes in the metro area is a lot less than normal. Carroll said that there are around 2,500 homes listed and brokerages typically like to see that number around 4,000 homes.
Both realtors hoped that the next few months prove to be the market correction that is needed because if it is the demand will shoot up in their opinion. And that means new home listings will follow.