Georgia House Price Index All Transactions House Price Index

(Data from Federal Reserve Bank of St. Louis and the US Federal Housing Finance Agency)

“All those that were able to get 3% loans, pre-pandemic and through most of the pandemic, they’re very reluctant to let that go, and I don’t blame them, I’d hold onto that price too. Because if they put that house back on the market, and it sells, then they have to re-buy, then they may be talking about 7% interest.” She reiterated that, ordinarily, prices should come down as rates rise.

While higher rates may be deterring people from selling their homes, and things may be difficult for first-time home buyers, the demand is still there, in part locally to the influx of new busi- nesses and industry to Bainbridge. “It can affect qualifications maybe,” Staples said of the rates, “but it hasn’t deterred people from buying homes, especially if they’re moving here. They’ve gotta have a home.” With new housing projects being built, such as Southgate off Tallahassee Highway, there are efforts to add inventory to match the demand, though Simpson was skeptical if this would be enough to lower prices.

“I think it’s gonna keep them where they are, they’re not gonna continue to go down,” she said. “I don’t think we’re gonna have so much supply that it’s gonna mess the mix up, I think we’re maybe just gonna need more housing at that point.”

That said, Simpson wanted to reassure prospective buyers about their options. “I don’t think buyers should let 6-7% scare them to death on a rate, we’ve seen them a lot higher than that,” she said. “The best thing you can do is buy a home, that’s the American dream... It’s still worth buying a home if you can secure that loan.”

For those looking to buy a house, Simpson encouraged them to be mindful of their credit. “Keep that credit score clean, that’s gonna be one of the number one things that’s gonna affect their ability to buy. No slow or late payments for 12 months, lenders do not like to see slow or late payments within a 12-month period. And of course, income’s always in the mix.”

Staples admonished those looking at taking out a loan to, “Be mindful of what you’re purchasing. Let’s make sure we’re not paying way, way over price.” He further emphasized being able to pay back a loan: “Higher interest rate causes higher payments.”

Again, buying a house is a significant decision. Between inter- est rates, demand and inventory, and the regional housing market around Bainbridge, there are a lot of factors potential buyers need to keep track of. Fortunately, there are more than enough local bankers, realtors and financial advisors in the community like Staples and Simpson that are willing to make such a daunting task, much easier to understand.