Interest rates are slowly rising. However, local experts said this is not the biggest factor impacting those buying and selling homes.
Here’s more on the issues affecting the local housing market.
One local realtor said that right now the main concern is the lack of inventory in the housing market.
Homeowners and buyers are facing rising mortgage interest rates.
One expert and Allegheny College Professor, Chris Allison, said that interest rates are expected to rise within the next year while going up a quarter at a time.
Allison said that despite this increase, the interest rates are still relatively low and people are interested in buying homes.
“Unemployment rates are at record lows. GDP is very high. Productivity is very high. The monkey wrench in the economic picture is inflation. People are getting jobs, getting bonuses, they’re getting higher wages, mortgages are cheap, they’re going to buy homes,” said Chris Allison, Professor, Allegheny College.
Allison said the point of increasing interest rates is to slow the economy down and curb inflation. He said that there is one large factor contributing to inflation.
“What’s effecting it is the supply chain. It’s a simple supply and demand issue. We’ve still got bottle necks with respect to the supply chain from COVID,” said Allison.
One local realtor, Marsha Marsh, said the housing market is busy right now, meaning people are interested in buying a home.
“The biggest problem is the lack of inventory. That’s all over the country, not just in Erie. Yesterday, I showed a property in Fairview. There were numerous appointments and if you don’t go in and buy right now then you won’t be able to get the house,” said Marsha Marsh, Owner, Marsha Marsh Real Estate Services.
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Marsh said that typically there are about 1,000 listings. She said right now there are about 200 listings.