Charlottesville, VA (CVILLE RIGHT NOW) – The housing market continues to navigate a complex landscape influenced by fluctuating interest rates and rising construction costs. Michael Guthrie, President Emeritus of Howard Hanna Roy Wheeler Realty joined WINA Morning News to discuss the market. While demand remains steady, affordability concerns have grown as potential buyers face higher borrowing costs and supply chain disruptions impact home prices. Industry experts are closely monitoring these trends, looking for signs of stabilization in the coming months.

Interest rates have become a focal point for both buyers and sellers. Guthrie explained, “Bad news in the economy usually means good for interest rates… we’re in a stagnant place.” With rates hovering around the high sixes, some prospective buyers are hoping for a drop before finalizing purchases. However, Guthrie cautioned that significant reductions may not be on the horizon, impacting affordability for many.

Another pressing concern is the rising cost of building materials due to tariffs. “A lot of people don’t realize how much lumber comes out of Canada for construction in our country as well as metal,” Guthrie said, adding that price increases are already being passed on to consumers. A recent regional housing summit addressed these affordability challenges, bringing together counties, private businesses, and nonprofits to discuss solutions. As market pressures persist, industry leaders stress the need for long-term strategies to ensure sustainable housing access.

Listen here for the full conversation: