The real estate market is undergoing a major reset, and interest rates are at the center of the shift. After years of historically low borrowing costs, rising rates are reshaping how buyers, sellers, and investors approach property deals.
For buyers, higher rates mean reduced purchasing power. A home that seemed affordable last year may now be out of reach due to larger monthly payments. This has cooled demand in many markets, leading to slower sales and more negotiation power for buyers who remain active.
For sellers, the adjustment requires strategy. Overpricing a property in today’s climate can lead to long listing times and fewer offers. Sellers are learning to price competitively and invest in improvements that make their homes stand out.
For investors, rising rates present both challenges and opportunities. While financing is more expensive, slowing competition can make it easier to acquire quality assets. Rental markets, in particular, may benefit as more people delay buying homes and continue renting.
The market reset is a reminder that real estate is cyclical. By understanding interest rate trends and adjusting strategies accordingly, buyers and investors can still find success—even in a higher-rate environment.