Don’t Assume Lower Rates Will Raise Your Home Value

By Monique Walker

Monique Walker has 21 years of experience successfully buying and selling homes in the Phoenix market. She knows the neighborhoods, schools, and the local economy. Monique and her team do all the leg work, keeping you up-to-date with new listings and conditions as they impact the market.

Everyone gets excited when interest rates drop. It feels like a golden opportunity, with more buyers, faster sales, and higher prices. But here’s the reality: lower rates don’t automatically mean your home will sell for more money.

This is a common misconception I run into, and it’s why buyer demand, seller competition, and timing all deserve a closer look.

Buyer demand can increase before appreciation takes place. Lower rates do increase the number of buyers who can afford to purchase a home. That’s positive news for the market. But just because more buyers can buy doesn’t mean your home’s value will immediately rise. Appreciation of the actual increase in home prices takes time.

More sellers enter the market when rates drop. What also happens when rates go down is that more homeowners may decide it’s a good time to sell. Sellers get excited, too, and want to upgrade, which adds more homes to the market. With more options available, buyers have more homes to choose from, which can limit the short-term impact of lower rates on your home’s sale price.

Every market is different, and real estate is super hyper-local. That’s why it’s important to look at what’s happening specifically in your area. If you want clarity on your local market, reach out anytime (602) 413-8195 or email Monique@MoniqueSells.com. I’d be glad to explain what it means for you.