Interest Rates and Home Prices
Last week the Fed Chairman, Jerome Powell, announced that, “The time has come for policy to adjust.” However, we’ll still have to wait for the actual rate cut until the next Federal Reserve meeting, which is scheduled for September 17-18.
Interest rates are projected to continue to slightly decrease over the coming year. In light of the rate adjustments, home sales are expected to increase in the coming year.
The market should see an increase in both the supply of available homes on the market, as well as a rise in demand, as more buyers and sellers who have been sitting on the sidelines choose to make a move. That’s one reason experts are projecting an increase in home sales next year.
While slightly lower mortgage rates are not expected to bring a flock of buyers and sellers back to the market, they certainly will get more people moving. That means more homes available for sale and competition among buyers who want to purchase them.
This should put continued upward pressure on prices. Experts forecast home prices will continue to increase moderately next year at a slower, more normal rate. But keep in mind, prices will always vary by local market.
If you would like a market valuation of your home or homesite, give us a call and we will be pleased to assist you.
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Johnny & Jeff
