Near record low interest rates heating up local real estate market

Posted at 5:09 PM, Aug 05, 2016
and last updated 2016-08-05 18:40:05-04

Right now the real estate market appears to be a win, win for sellers and in some cases buyers, because of dropping interest rates.

Near record lows of 3.43 percent on a 30-year fixed mortgage are attracting more buyers.

Rocky River Remax realtor Pat Patterson said if you’re considering selling, “now is the time”, because there are more buyers than sellers. Put another way, it’s supply and demand.

"Lots of buyers looking for homes, we just don't have enough inventory,” Patterson.

The market is so hot in Northeast Ohio, in places like Rocky River for instance, some houses are selling the same day they hit the market, and some sellers are getting more than their asking price as buyers compete for the same house, creating bidding wars.

Some houses are selling even before the for sale sign goes up, because real estate agents have a waiting list of buyers, many of whom are looking for low interest rates and good school systems.

“The real estate market is hot in some cities, homes are selling prior to being put on the market,” Patterson said.

Patterson it’s also a good time to refinance with rates a half percent lower than last year.

In some cases, a half percent drop on a $150,000 house can lower your monthly payment, saving you $1,200 dollars a year, Patterson said.

But you also have to figure in closing costs to make sure refinancing is for you.

Patterson also said with the low interest rates it’s a good time to do an addition.