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Feds Cut Interest Rates for the First Time in 4 Years

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In a move that came longer than expected, the Feds decided on September 18, 2024 to lower interest rates. This move marks the first time the Feds lowered interest rates in 4 years (Forbes). 

Federal Reserve Chairman, Jerome Powell, cited his reasons for lowering interest rates: “The U.S. economy is in good shape. It’s growing at a solid pace. Inflation is coming down. The labor market is in a strong pace. We want to keep it there. That’s what we’re doing.”

How Lower Interest Rates Affect Mortgage Rates

A decrease in interest rates is good news for homeowners and those looking to buy a home. Mortgage rates are at their lowest level in 19 months, with a 30-year mortgage loan dropping from 7.2% to 6.2% (source). Lowered rates mean more buying power and more buyers able to afford homes they were once priced out of. A decrease of even one basis point could mean the difference between affording a mortgage and not affording a mortgage.

With talk of the Feds lowering rates even more in November and further in 2025, the question remains: “When is the best time to buy a home?”

Is Now a Good Time to Buy a Home?

With the decrease in interest rates and mortgage rates, now is a good time to buy a home. Whether prospective homebuyers want to wait for lower mortgage rates in the coming months is a personal decision, but when it comes to making a smart decision, The Gamache Team is confident in its claim that now is a great time to buy a home. 

Most people are likely to wait out lower interest rates so competition will be less to compete for the homes on the market. If a prospective homebuyer waits until the spring market, there will be more buyers competing for the same homes which increases prices and leads to bidding wars. 

The current rates bring more buyers into the market, increasing the competition. 

Consider Refinancing in the Future

Buyers who purchase now may be able to refinance their mortgage when rates get to a point that they feel comfortable with. Unlike others who wait for rates to drop before buying a home, current homeowners are already in a home, reducing the stress and hassle that comes with a frenzied market full of buyers ready to outbid, outlast, and outbuy. 

If you can stretch yourself to purchase a home, anticipating lowered rates, you may be in a stronger position to “get the home of your dreams” before someone else does.

Connect with The Gamache Team to Discuss Your Homebuying Needs

If you are considering purchasing a home, contact The Gamache Team to discuss your home buying needs. We have over 50 years of real estate experience and buy and sell property ourselves in the Tri-Valley area. It would be our pleasure to help you become a homeowner. 

Deciphering the Craze in the Tri-Valley Housing Market

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real estate economy

The news is filled with housing market data, leading to a bit of craze in the Tri-Valley housing market. As your local family-owned brokerage who serves the Tri-Valley, we are constantly being asked to make sense of a housing market that has seen more ups and downs than a roller coaster.

Let’s discuss the elephants in the room and get to the question on everyone’s mind, what is happening to the real estate market, and is this a good time to buy, sell, or stay put?

How the Economy is Affecting the Housing Market in the Tri-Valley

The biggest factor affecting the housing market in the Tri-Valley is the economy. Rising interest rates, the highest they’ve been in more than 20 years, job uncertainty, a falling stock market that affects retirement and down payments, layoffs, and a drop in housing prices makes for a very uncertain economy.

Those who still have jobs are not sure they want to make a move, “just in case” their job is next to be cut.

Those who lost a job may be wondering if now is a good time to sell in case they can’t find a job right away and thus can’t afford to continue to live where they purchased. 

Others may be returning to onsite work

places, meaning they may have to sell the home they bought just a few years ago so they can be closer to work.

Retirees may not downsize or move away because of a dip in their stocks, the money they counted on for their retirement. 

And all others may be just watching from the sidelines, not sure whether or not now is the time to make a move. 

How the Holidays are Affecting the Tri-Valley Real Estate Market

The holidays are a traditional time for a slowdown in the Tri-Valley real estate market. Between the colder weather, decorating for the holidays, having family in town, and just wanting to stay in your own home for the end of the year, the holidays have traditionally signified a slowdown in sales. 

Even buyers who usually see less competition during the holidays are pulling away from purchasing at this time until the state of the economy clears.

Is This a Good Time to Buy or Sell My Home in the Tri-Valley?

Whether or not you want to buy or sell your Tri-Valley home is an individual decision. With all of the factors listed above, a consultation with The Gamache Team is necessary in order to take in all of your concerns, discuss your finances, and come up with a plan.

Whether or not you are thinking of selling or buying now, it’s still a great idea to put your plan on paper so when the time is right, interest rates go down, and the economy settles, you can be the first one to hit the market strong. 

 

 

The Gamache Team Real Estate Market Update

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As we are halfway into Q2, The Gamache Team is diligently following the real estate market to provide you with a timely and informative real estate market update.

Since the Feds raised interest rates earlier this month, we have seen a shift in the price point of some homebuyers. The increase in rates bumped some homeowners into a lesser price point in an already low inventory market. 

The half-point interest rate hike, the volatility in the market, inflation, and the events overseas are causing some homebuyers to hold off purchasing a home.

Some sellers are seeing their homes stay on the market a bit longer than expected, causing some to lower their prices, a first we haven’t seen in three years.

Other sellers who expected multiple offers, all cash offers, and offers over asking price are experiencing less of the craze that filled the real estate market years prior.

Assessing the State of the Real Estate Market 

Despite rising interest rates and a slower turn around time for a house to sell, the state of the real estate market is still strong.

In a normal, pre-health crisis market, homes this time of year often sit longer on the market. Graduation, vacations, end-of-school activities and move outs for college-age students stall the real estate market progress of some buyers and sellers.

Likewise, we need to remember that the last three years are unusual. The real estate market in prior years experienced price adjustments, contingent offers, longer sales times, and higher interest rates.

Advice for Buyers and Sellers in a Changing Market

The best advice for anyone looking to buy and sell in a changing market is to talk with an experienced real estate professional and preferably someone who has experience in a changing market.

You have only one chance to make a first impression. Every detail of the preparation, staging, marketing, advertising, and pricing of your home needs to be considered to get a solid and acceptable offer. Making a mistake on the pricing of look and feel of a home can turn a buyer away and leave money on the table. 

Sellers need the advice of an experienced Realtor who knows the value of a home, how to negotiate in your favor, and keep you emotions in check by providing solid financial guidance.

Contact The Gamache Team for Your Buying and Selling Needs

The Gamache Team has been representing buyers and sellers in the Tri-Valley since the 1970’s. We are a family-owned and operated business that has been helping clients and their families and friends purchase and sell homes.

Our reputation is one of honesty, transparency, communication, ethics, and getting you the right deal at the right price at the right time.

We would be honored to be your trusted Realtors for the sale or purchase of your Tri-Valley home. 

 

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