Tuesday, February 6, 2024 / by Michelle Aspseter
The Federal Reserve's Path to Interest Rate Cuts: Implications for Buyers and the Market
In recent developments, Federal Reserve Chair Jerome Powell hinted at the possibility of interest rate cuts during a notable appearance on CNN's "60 Minutes". For many, especially prospective buyers in Utah, this news is both crucial and timely. As it stands, the Federal Reserve's benchmark interest rate is positioned at 5.4%, with the average interest rate for buyers in Utah hovering around 6.5% to 6.75%. This disparity between the Fed's rate and consumer rates means buyers are paying significantly more, stirring questions and anticipations about the timing and impact of potential rate cuts.
Anticipating the Timing
Jerome Powell's statements have set the financial community abuzz, suggesting that the first glimpses of rate reduction could emerge around May or June. This timeline is critical for buyers and investors alike, as it sets the stage for financial planning and strategic dec ...
Thursday, January 4, 2024 / by Michelle Aspseter
The real estate market is buzzing with anticipation as recent discussions suggest a potential drop in rates to as low as 3% next year. It's a scenario that has many prospective homebuyers and investors on the edge of their seats. Let's dive into what this could mean for the housing market and, more importantly, for you.
The Federal Reserve's Possible Rate Cuts in 2024
As many of you may have heard, there's a strong likelihood that the Federal Reserve (FED) will implement rate cuts three times in 2024. Experts are predicting that these changes could occur sometime between April and June. If this prediction holds true, we might witness a market frenzy reminiscent of 2021.
The 2021 Market Redux?
Remember the bidding wars and the rapid sales of houses we saw in 2021? Well, brace yourselves, as we might be heading for a similar situation. Already, there's a noticeable trend of declining inventory, a clear sign that buyers are jumping back into the market, spurred by the recent drop of a ...
Thursday, July 27, 2023 / by Justin Critchfield & Michelle Aspseter
Hello there, property enthusiasts!
If there's one thing certain about the real estate market, it's that it's always changing, always surprising us. And this year is no exception. We've seen quite a few twists and turns in 2023, and I am here to break it down for you.
To start, I'd like to draw your attention to a specific graph (as depicted below). This graph showcases median single-family home prices in Salt Lake County. It's interesting to note that we witnessed a significant peak in 2023, followed by a steady decline.
What caused this peak and subsequent decline? Well, the prime culprit was the rise in interest rates in 2023. But as the famous saying goes, "What goes up, must come down," and the same holds true for interest rates. Their impact on the housing market, however, is often less predictable, and in this case, it led to a dip in home prices.
The yellow part of the graph points to an intriguing development in the housing market. The latter part of 2023 started to witne! ...
Thursday, July 20, 2023 / by Justin Critchfield & Michelle Aspseter
Unpacking Utah's New Homebuyer Grant Program: A Golden Opportunity
In a dynamic move to invigorate the housing market and provide an accessible route to homeownership for many Utahns, the state of Utah has recently allocated an astounding $50 million in grant money specifically aimed at aiding prospective home buyers. Dubbed the "First-Time Homebuyer Grant Program", this initiative is not only a ray of hope for first-time buyers but also a valuable chance for those who haven't owned a home in the last three years.
The program is set to kickstart from July 25th, 2023 and it’s important to understand its ins and outs to best position yourself to take advantage of this unique opportunity.
Exploring the Qualifications
Before you start planning your move, it’s essential to understand the program’s specifications and qualifications. The state has outlined two significant criteria that potential buyers must meet to be eligible for this program.
First and foremost, the? ...
Wednesday, June 28, 2023 / by Justin Critchfield & Michelle Aspseter
As the warmth of summer approaches, many of us are casting an anxious eye towards the real estate market. Uncertainty abounds: What will happen to home prices? How will inventory change? Are interest rates going to rise or fall? Will the market crash? This blog post will provide a detailed forecast on these important components of the 2023 summer housing market.
1. The Shifting Sands of Inventory
First on our list is inventory. Our prediction? It's set to decrease. The number of homes on the market will shrink over the summer months. This is because, for many homeowners, moving right now doesn't make much sense. Builders have slowed their pace over the last year, which directly affects the number of available homes on the market. Furthermore, high interest rates make the prospect of a new mortgage less appealing, causing potential sellers to stay put.
2. Interest Rates: A Stabilizing Force
On the topic of interest rates, opinions vary. However, the consensus among experts sl ...