Lots of headlines this week! Chatter everywhere ranges from Adam Levine, lead singer of Maroon 5, and his texting habit (for some reason this is a big topic in my house!) , to the the Queen, to the stock market's continuing decline and interest rates. And the most talked about item on that list is probably the least provocative - INTEREST RATES, but it effects our wallets.

We have become a rate-obsessed country with Federal Reserve Chairman Jerome Powell using them as his major inflation reduction tool. In an interview with CNN, a reporter asked what he hopes to achieve. "When I say 'reset,' I'm not looking at a particular, specific set of data or anything," Powell said. "What I'm really saying is that we've had a red-hot housing market all over the country where, famously, houses were selling to the first buyer at 10% above the ask before even seeing the house, that kind of thing. So, there was a big imbalance between supply and demand." (see below the inventory is still relatively low!)

"Powell said housing prices were going up at an unsustainably fast level. The "reset" should "help bring prices more closely in line with rents and other housing market fundamentals.

"That's a good thing," Powell said. "For the longer term, what we need is supply and demand to get better aligned so housing prices go up reasonably and people can afford houses again."

So how does his actions play out real-time in my world of Metro West real estate?

  • Interest rates could perpetuate the inventory problem, since sellers won't want to move in order to keep with the lower payments they currently have. One client said just that to me this week. 
  • There are still bidding wars and housing is selling quickly. This scenario is in pockets, but it is not quite a buyer's market now.
  • We HAVE NOT seen prices heading lower as of now.
  • BUT in some areas of the state and country buyers are holding off on purchasing a new home or breaking contracts because their payments have ballooned.

 

A smart colleague from MGS Group said it really well - while it's isn't a hard data point, the truth is that A LOT of people moved in the last two years. The pace is naturally going to slow down. People will always need to move however, and thank goodness, since that is what we do! :) Just this week a buyer is flying in from Los Angeles to house shop since they are moving east. Our lives don't stop because of interest rates, we are always changing and evolving. Here's a sneak peak at this week's fabulous listings I launched - click the links to see all of the details!

 

15 River Glen Road, Wellesley

60 Macarthur Road, Natick

 

 

I end this week with some shameless self promotion. I just finished my new "About Me" video. Check it out, I hope you like it and would love to call you a client one day if you aren't already. Have a great weekend!!

Are you curious about what your house is worth in this market? I'm always available and more than happy to provide an analysis for you! Email me at teri@teriadler.com or call at 617-306-3642 to schedule a meeting.