Interest rates have finally been cut for the first time since March of 2020, what exactly does this mean for real estate? It’s an interest dynamic for buyers and sellers that we are going to explore in this article. As a real estate agent, we’ve been hearing about this anticipated cuts for several months now, and the weeks leading up to it have been very interesting.
These last weeks, I’ve personally noticed houses in my area staying on the market slightly longer than usual, with price cuts more prevalent than I’ve seen all year. As an investor, we were able to purchase an investment property for $105,000 under asking during this time, why would this be? In my opinion I think buyers have been sitting on the sideline in anticipation of this rate cut, and now it’s finally here, So what changes now? Well, you all of a sudden have a larger buyer pool qualified to bid on homes, but have we built more homes yet? More than likely we have not, if you’ve read my previous articles, I’ve mentioned before that there would be a lag time between when rate drops and new housing development. This period of time cultivates an extremely competitive environment for buyers on limited inventory.
This doesn’t mean you should be discouraged, but rather if you’re one of the people sitting on the sidelines waiting for that rate drop, now is the time to find that home you’ve always wanted, before things become extremely competitive. Although it seems the last quarter of the year will likely be a competitive housing market, there’s no telling how things will play out into the new year. One thing is for sure, the best time to buy has always been yesterday, so if you’re thinking about it, don’t delay. Thanks for reading!