SEBASTIAN – Whether you live in Sebastian or Vero Beach, here’s how a Federal rate hike will affect real estate and mortgages in Indian River County.
Homebuyers have been insensitive to interest rate hikes because of the low-rate environment, and some real estate analysts expect housing prices to go up 3.6% in 2017 even as interest rates rise, according to Zillow estimates.
But is now a good time to buy a home? How will the rate hike impact buyers?
“Any rate changes will affect the buying power of someone who is financing a home. The projected rate increases will make a monthly payment change of approximately $57 based on the Median sales price in Indian River County as of December 1. That amount should not prevent many people from qualifying,” said Sean Prescott of RE/MAX Crown Realty in Sebastian.
Prescott also says the rate increase may prompt people who have been waiting to make a purchase to start actively looking for a home.
While in a market of low-interest rates, a lot of people still used cash to buy their homes in Sebastian. That buying power isn’t expected to decline in 2017.
Experts predict that housing prices will continue to rise in many markets, including Sebastian and Vero Beach, next year even as mortgage rates rise.
Market watchers expect the Fed to hike rates several times next year if the economy stays on its current course. But that small increase is unlikely to reduce demand for housing as prices have continued to rebound this year.
Some homeowners sold their larger homes for profit and downsized by paying cash. The low-interest environment has been good for both sellers and buyers.
All signs still point to a strong Florida real estate market in 2017.