It's old news, but worth repeating. This was the first rate cut since March 2020.
What does it mean for buyers and sellers, and how is this likely to affect our market?
For Buyers
- Lower mortgage rates. Now is the time to lock in a lower interest rate for your home loan, reducing your monthly payments and the overall cost of buying a home.
- Increased purchasing power. You can afford more home for your budget. It's time to explore your options.
- More options on the market. More people are choosing to sell which will increase inventory.
For Sellers
- More serious buyers in the market. More favorable rates will increase the demand for homes.
- Higher sale prices. Increased demand will create a more competitive market leading to higher prices in the short and long term.
- Attractive upgrade opportunities. Sellers who intend to purchase a new home will enjoy the lower rates, increased purchasing power and more options.
In the Manhattan market, where 2/3 of the transactions are "all cash", the rate cut will have less impact than in other markets. But, the rate cut is likely to strengthen the already robust stock market, which will most certainly affect buyer and seller sentiment and add additional fuel to the local real estate market.
Choosing to buy or sell "now" or later" is complicated. Is it better to buy or sell in the fall or wait until spring when there is generally more activity? My response: it is impossible to time or predict the market, and everyone's circumstances are different. If you're considering a move, be mindful of the market's dynamics, and consult with a broker specialist who understands its up-to-the-minute and hyper local nuances as well as your unique needs. Experienced and savvy agents will guide you through the complexities of the decision making process.
A strong agent is essential in any market, but especially in today's market with today's issues. In addition to decision making, look to your agent for expert guidance with:
- the overall deal making process,
- analyzing and valuing properties,
- advising on negotiating strategies,
- advocating on your behalf,
- presenting board worthy coop or condo application packages,
- connecting you to other trusted professionals,
- and enhancing your overall home buying / selling experience.
Please reach out with questions or comments, out of area broker referrals or any of your other real estate needs.
