You may have noticed that interest rates recently jumped again, making it more expensive to borrow money for just about anything – including a house.
This has some implications for you if you’re thinking about selling your property in Winston-Salem.
Let’s talk about what rising interest rates mean for selling your home, versus renting it out.
Interest Rates and the Winston-Salem Sales Market
Higher interest rates aren’t always bad news for sellers. You’re not the one applying for a mortgage, after all.
However, those rising rates do have an impact because it means there may be fewer buyers looking for homes. It also means they won’t necessarily be willing to pay as much as you’re asking because they know their home loans will be more expensive.
Plenty of cash buyers are still looking for well-maintained homes in desirable locations. Investors are not always concerned with mortgage rates. You can still sell, you should simply prepare for a longer wait time and a potentially lower price point.
Renting Your Winston-Salem Property
Renting may offer you more profitable outcomes.
While the sales market begins to peak and settle, the rental market in Winston-Salem remains red-hot. Rents are on the rise, tenants are staying in place longer, and the pool of potential renters is only growing. You don’t have a lot to worry about when it comes to vacancy and turnover costs.
With homeownership more expensive thanks to interest rates and higher home values, more people are continuing to rent in the Winston-Salem market. This drives up demand for properties, even while inventory is still pinched.
If you have a property to rent out, now is a great time to do it. You’ll find there are a lot of well-qualified tenants, and the rents you earn will set you up for some great cash flow in the short term and some impressive appreciation in the long term. Even if you only rent your home out for a year or two, you have tenants paying down your mortgage and contributing to your expenses even while you retain one of the most valuable assets you could own.
Property Management Services in Winston-Salem
Not sure about renting out your home because you don’t exactly see yourself as a landlord?
Don’t worry. You can partner with local professionals who can lease, manage, and maintain your property while it’s a rental. If you’re thinking about selling in the future, look for experts who also provide Winston-Salem real estate services. That way, you can talk about strategy as your property transitions into a rental and then becomes a home you want to sell later on down the road.
At Capstone Realty, we can help you make sense of the current market, the rising interest rates, and the best options for you and your Winston-Salem home. Leverage our experience and resources, and we’ll find a solution that fits your needs and your property.
Whether you want to sell or rent out your home, contact our team at Capstone Realty Consultants. We’ll deliver a pleasant and profitable experience.