In the current real estate market, both buyers and sellers express concerns. The substantial increase in interest rates from 3.5% in 2020 to the current 6.9% has raised anxiety. The next anticipated Fed announcement for this month further fuels this unease. Personally, I perceive subtle yet steady changes unfolding before us. Five years ago many buyers held back their purchases, anticipating a market crash. However, the pandemic altered the landscape, reducing interest rates. Following the pandemic, interest rates escalated, and today, despite the high rates, homes receive an average of four offers, benefitting sellers who often sell above the asking price. Conversely, this poses challenges for potential buyers, forcing them to continue renting. The issue of renting itself presents additional hurdles, such as exorbitant prices, and very strict criteria to qualify for the rental. It appears that the scarcity of homes and the effort to combat inflation, thereby avoiding recession, contribute to these challenges. While I am not an expert, I recall reading once that when the FED raises rates their aim is to discourage borrowing (by making it expensive) and mitigate inflation. However, in my limited understanding, this strategy does not seem to be effectively curbing inflation within the real estate market as we witness soaring rents, high-interest rates, and limited housing inventory. https://www.onepremierhomes.com/