A recent report on home sales and prices reflected a statewide tightening of inventories but an economist says the flip side of the coin could put more people looking for homes.
David Clark is an economist with Wisconsin Realtors Association. He says the Federal Reserve has been inching up interest rates to stave off inflation. Potential home buyers enjoyed some of the lowest interest rates in on home loans following the Great Recession. But Clark says people thinking about buying a home soon might make the plunge.
He says buyers might be thinking if the rates go up to far they might be priced out of a home...
".....one of the things that happened is sellers and buyers recognize that this is a market that is moving quickly. Buyers are recognizing that this is an inconvenient time to buy a home, but it might increase our chances of getting into a home..."
Clark thinks that might be one reason why there were more interested buyers this winter than last winter as the prospect of higher interest rates might be moving people to jump into the market now. Wisconsin Realtors Association statistics find nearly 800 homes sold in the 18 county northern region in January and February with an average price of $146,000.
