National news and local views Friday, September 20, 2024
National Real Estate News
Fed makes big rate cut!
At its September 18 meeting, the Federal Reserve chose to cut short-term interest rates by 50 basis points (that's 0.5% or half a percent) from 5.5% --> 5.0%. That's an aggressive start to the new easing cycle, which on Fed member forecasts could see the Fed Funds Rate drop to 4.4% by end-2024 and 3.4% by end-2025. [Source: Federal Reserve]
Mortgage rates steady
Average 30-yr mortgage rates had already dropped from 7.43% to 6.14% BEFORE the Fed rate decision. That's why the actual Fed rate cut had a limited impact on mortgage rates. But not to worry. As the Fed rate cut cycle continues, mortgage rates will follow the Fed Funds Rate lower. The speed and frequency of future rate cuts will continue to depend on inflation and jobs data. [Source: Mortgage News Daily]
Here come the condos
In August new home permits (+5%), starts (+10%) and completions (+9%) all had a nice bounce. During COVID, we saw multifamily unit construction ramp to near record levels. Well, those apartments and condos are now being delivered at a pace we haven't seen since 1975! And 60% of those are being built in the South (includes TX & FL), which could continue to put pressure on rental rates there. [Source: Census Bureau]
Local Market Trends
Here you can enhance your area’s housing market data with your own insights and commentary!
| Area | Median Price | Active Listings | New Listings - 5 days | Median Days on Market |
|---|---|---|---|---|
| Gilbert, AZ |
$640,000
0%
|
619
0.2%
|
62 |
44
-0.1%
|
| Chandler, AZ |
$598,000
0%
|
493
0.1%
|
53 |
41
-0.1%
|
| Queen Creek, AZ |
$699,999
0%
|
621
1%
|
68 |
68
0.1%
|
| Mesa, AZ |
$500,000
0%
|
1135
0.2%
|
98 |
40
-0.2%
|
/) from Aug. to Sep. 2024.
Categories
Recent Posts
"My job is to find and attract mastery-based agents to the office, protect the culture, and make sure everyone is happy! "