Founder | Alta Real Estate | Unparalleled Experience in select luxury and commercial trades
Dear Friends, Today's Fed announcement at 2PM EST will be one of the most watched government addresses in many years. Experts predict that the Federal Reserve will reduce interest rates anywhere from a quarter of a point, to a half a point. This will be the first interest rate cut since the Covid interest rate increases which were used to cool inflation and spending. Now that we are in the "soft landing" phase, the government does not want the economy to slow so much that we tip into recession. Its a tricky game, and so far its worked out, with employment strong and inflation back in the 2.5% range which is back to a normal pre-covid range. How will this effect the Real Estate Market? As the cost of money gets cheaper, we fully expect a lot of consumers to reenter the market for larger ticket items like housing, vehicles, and even new business loans. Since this is likely going to be just the first in a series of interest rate cuts (assuming inflation stays low), we expect a number of things to change positively for both buyers and sellers over the coming months: _ Increase in the number of buyers _ More competition for homes _ More sales inventory _ Easing of Rental Prices _ Possible home price increases As today will usher in a new market, we will be updating you periodically on how the new market conditions are effecting inventory, prices, and negotiations in the real estate market and how you might be able to use these changes to your benefit. If you have any specific questions on your likelihood of trading and at what interest level, please feel free to call me directly at (917) 204-6577 or email me here. Happy Wednesday!