ERIE, Pa. (Erie News Now) — Since the pandemic, the real estate market has changed drastically. With the Federal Reserve’s increase on interest rates, realtor for Agresti Carrie McAdams explains that home buyers are feeling the effects.
“Say last year, midsummer, you were pre-approved for 250,000 you might only be comfortable spending 175 now, with the interest that have gone [up] — I’ve seen 6.5 up to 7 now, and I think they may have been a little higher here last Friday,” McAdams said.
Along with increased interest rates, there real estate market is also seeing low inventory, which means what is on the market doesn’t stay there very long.
“Inventory though, there’s 155 single family homes in all of Erie County. There’s 47 in the city of Erie, 22 single family homes in Millcreek and 10 single family homes in Fairview. So there’s not a lot of there. So if one comes on the market, if it’s move-in ready and updated, and the big things are taken care of, it usually sells pretty quickly,” McAdams said.
McAdams says that it’s a great time to sell. Since the houses for sale are limited, its a more competitive market. Yet, realtor for Coldwell Banker, Patricia Zeigler says selling isn’t as simple as it seems.
“Usually they have to buy a house first, or find a house to put a contract on then go, continue on the sale of their home. So if there’s not much on the market for them to buy, their not able to buy their house yet, so we’re back to very limited inventory,” Zeigler said.
And with a new season around the corner, the hope is that inventory will improve.
“I’m a little nervous, but I think that hopefully in the spring things will turn around and we’ll start to get more. People are relocating, so maybe that will help us get more houses on the market,” Zeigler said.