Will rising mortgage rates change the real estate market for buyers?

Rising mortgage rates have been the talk of the housing industry in recent months, but is it really changing a market that has long favored sellers?

In the latest episode of “You Have Real Estate with Justin Clark,” Orlando-area realtor Jack Luiz and tax accountant Brian Fay join Clark to discuss the latest industry trends.

Below are some highlights that were discussed.

For the full discussion, watch the video above.

Is the market starting to favor buyers with higher mortgage rates?

Luiz said there has been a slight change from the bidding wars and conditions favoring sellers that have dominated the market.

The main reason is that buyers facing higher rates are unable to afford as much for a home as they previously could with lower rates.

“Longer days on the market and multiple price drops,” Luiz said. “It’s actually good for the agent and the buyer. This gives the agent more time to really market the property and do more open houses, and for the buyer it gives them a chance to actually see these properties before they are repossessed.

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What are higher gas prices doing to the real estate market?

Luiz said those who prefer to live in rural areas away from busy metropolitan areas must now consider higher gas prices.

While living in rural areas can often mean nothing to worry about, having to pay more at the pump now makes up for it.

“Gas is factored into this monthly payment,” Luiz said.

What about taxes for the sale of a house?

While sellers who have a lot of equity in homes are excited about the money they get from a sale, those profits can often be gobbled up by the IRS if they’re not careful.

Fay said there are several factors involved in the amount of money that would be owed, such as whether a house is a primary residence or if there are liens on the house.

“With real estate transactions like this, you definitely want to hire a professional,” Fay said.

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