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

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Rising mortgage rates have garnered a lot of talk in the real estate industry in recent months, but are they really changing a market that has favored sellers for so long?

On 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 trends in the industry.

Below are some highlight points that were talked about.

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 shift from the bidding wars and conditions favoring sellers that have dominated the market.

The main reason is that buyers who are facing higher rates aren’t able to offer 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. It 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 view these properties before they are scooped up.”

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

Luiz said those who favor living in rural areas away from busy metropolitan areas are now having to take into consideration the higher gas prices.

While living in rural areas can often mean no HOA’s to worry about, having to pay more at the pump now is offsetting that.

“The gas is factored into that monthly payment,” Luiz said.

What about taxes for selling a home?

While sellers who have a lot of equity in homes are excited about the money they obtain during a sale, those profits can often be eaten up by the IRS if they aren’t careful.

Fay said there are several factors involved regarding how much money would be owed, such as whether a home is a primary residence or if there are any liens on the home.

“With real estate transactions like that, you certainly want to use a professional,” Fay said.