Sound Advice October 4, 2024
The Federal Reserve cut interest rates by 0.50% in mid-September. What will that mean for buyers and sellers in the local housing market? Making Connections Realty’s Matt St. Amour explains:
“From the buyer’s perspective, reduced interest rates mean increased affordability, higher purchasing power and long-term savings. For sellers, it leads to higher demand, faster sales, potential for higher offers, and possibly more new construction. While lower rates might bring some sellers into the market, it’s unlikely enough new listings will balance it. The more likely outcome is increased buyer demand, further intensifying the seller’s market with higher prices and more competition. Buyers will need to act quickly, while sellers benefit from multiple offers.
The region already has a seller’s market, with low inventory, and interest rate reductions typically stimulate more demand than supply. While some sellers might be enticed to list, it’s likely that more buyers will enter the market. The market’s natural constraints (limited availability in shoreline towns, the appeal of desirable areas) may prevent the supply from increasing enough to balance the surge in demand. A balanced market would require more home building and listings, which may take time.”
Have a question for a local Realtor? Ask it here: welcomehome@theday.com
Matt St. Amour
Making Connections Realty
Mobile: (860) 803-4061
mattst.amour@gmail.com
makingconnectionsrealty.com
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