Wondering how the Federal Reserve's recent decisions impact the real estate market? Tune in to our latest podcast as we break down the Fed's interest rate policies and their implications for 2024 and beyond.
Here's a sneak peek of what we discuss:
- The Fed's decision to hold interest rates steady
- Anticipated rate cuts in 2024 and beyond
- Market reactions and what it means for you
Don't miss our insights on this important topic!
And of course, check out our "House of the Week" - a split foyer home in Mount Airy, MD, priced at just $415,000. Explore this handy-man special on a gorgeous corner lot with three bedrooms and more! #RealEstateNews #InterestRates
Of Jay Day and the Day Home Team of Real Estate Teams with our weekly real estate podcast coming up around the end of a year, a calendar year. I'm stunned, Jay.
I know, it's hard to believe that we're going into 2024. Christina and I talk about all the time. It's just like this year has definitely flown by faster than
I know in December. We had Thanksgiving. Boom. Here we are.
Yeah, sort of crazy. Well, let's talk a little bit about what happened a week ago. So over a week ago, the Federal Reserve, they met on Wednesday the 13th of December, and they decided that they were going to hold interest rates steady, not do any adjustments with cuts or increases. That type of situation is sort of what everybody was expecting. However, they did mention that they were penciling in a possibility of three rate cuts in 2024.
I'm going to tell you something because of you, I was aware of this, Jay. I've listened to the news and heard all this. I heard all that and it was happening. I'm thinking about you.
Yeah, I mean, and the markets we're anticipating that they were going to stay put, which is good. And I think that's why we've seen the rates come down a little bit and sort of be hovering in the sixes now. So it'll be really interesting. I mean, there's still a lot of uncertainty. We don't know what's going to happen, but I felt that was important news to put out there. And again, when the Fed makes this change, it's not a direct correlation to mortgages. It's how the market responds. And the market response is what impacts interest rates for mortgages when the Fed makes their adjustments, that is to the short term. We're talking about credit cards, things like that. That's where the interest rates get impacted from that, not mortgages, but again, it has a trickle down effect. So if you hear that, the one thing is people will hear, oh, the Feds cut things by half a percent or a quarter percent. It's not a one-to-one ratio of that happening to mortgage rates. But hearing that they might have some rate cuts in 2024. That's good. But what did I tell you? Expect that because we're going to an election year.
You said that.
That's how the games are played, man.
So one of the things that I wanted to talk about is, and we're seeing this, I think I mentioned it before, we've gotten quite a few calls from people again, where they were listed, their homes didn't sell, they didn't know what to do. They thought maybe the market was bad. And I mean, there's a mixed bag of things. Some of them, the marketing is not in place. Some of them, it's not a proper expectation.
Hey, most of 'em, it's the agent, man, let's get right to it.
Well, sometimes it's also so it can boil down to the agent and whether it's their marketing or conversation or setting the right expectations. The biggest thing that we've seen is that if you're trying to push the envelope and test the market, the market is not accepting.
Somebody who has a dream number in the back of their head.
Yep. Someone who's like, wow, I'd love to be able to get 500,000 for this, when really the comps don't support anything over 460. Those are really, really, and I'll be candid, we got lucky during Covid at times where sometimes houses sold for numbers that didn't even make any sense to anybody.
It was just somebody wanted to be there.
Sure they did.
They were willing to pay. And for that reason alone, people ended up paying more for something than what it may have been worth. But I always look at it too, of the house is only worth what someone's willing to pay. So even if the bank says, and we saw this during Covid, when an appraiser comes in, that's what the bank basically says the value is. So during Covid, we had a lot of people paying more than the appraisal. So that really is, it goes back to that a house is only worth what someone's willing to pay. So we could have a house get appraised today for 500,000, but if it needs too much work, someone might only be willing to pay 480. So is it worth 500 or is it worth 480? Well, technically it's worth, it doesn't matter if on paper it shows it's worth 500 if no one's willing to give 500 for it.
I understand that makes sense to you, to a lay person. Absolutely.
Yeah. So I will say the market is not bad. The market is not scary. This is not a bad time to sell. This is not a bad time to buy. The best time to buy and sell is when it makes the most sense for you or your family. Period. We've had so many people getting misinformation from agents of, oh, you don't want to put your market on the home now it's too slow. Don't do this, don't do that. We're selling stuff. We're still going up to Christmas and we're still getting homes under contract. It's not like everything stops.
No, everything has not stopped. Absolutely.
Now, last two weekends ago, we went to do some Christmas shopping, and I can definitely say that these stores are much busier than I like.
Two. Oh mess, nuts. It's crazy.
It's absolutely ridiculous.
It's nuts. Yes, it is not my favorite thing, but I don't have anything against it.
Yeah, not mine either.
Not me. I'll do it if I have to.
Christina has a rule. She tends to not like to do any Christmas shopping until after Thanksgiving. She started to change a little over the years because she realizes it's so much more peaceful to do things before we get past Thanksgiving. But she's always been, we need to be thankful. We need to celebrate one holiday at a time. We shouldn't be jumping ahead of things. But when we went to the mall, it was funny. She wanted to go to Bath and Body Works.
They all do.
And there was a line to even get into the store,
Jay, be careful of that line. Don't cut in that line. Those people are serious at Bath and Body Works. They want those candles and they want them bad.
Oh, man. Well, so she was like, forget this. I'm going to go home and just order it online and have it shipped to me. And I said, see, this is what happens when we wait.
I guess. Yes, I guess I do. I've always liked shopping. I've always liked shopping with women. I like holding purses and just watching the whole thing.
Right. Do you find that chair to sit in the corner? and
Yeah, I do. And it's amazing that they'll touch every garment in a place. I cannot believe what I'm seeing because I cannot take shopping and clothes. I can't deal with that.
Shoes is what I struggle with when they go to do shoe shopping. That's a rough one. I mean, what I've learned, I'm like, okay, well you can go look at the shoes. I'll either stay home or I'll go to a different store and we'll meet up.
If you're a good purse holder and you don't gripe, then you get brownie points, man.
Oh, you do.
That definitely works. Yeah.
You do. But it's tough not to gripe. You're like, how many pairs of shoes? And they all look sort of the same and
They all look the same. Yeah. No, I don't understand it. But they're worth it. They're worth it.
That's worth it.
Oh, absolutely. So you ready for the house of the week?
Let's give it to us, man. Alright.
4298 Molesworth Terrace. This is in Mount Airy, listed for 415,000. It's a split foyer on a corner lot. It's in an established neighborhood, but no HOA. It's a bit of a handyman special. Needs some sweat equity, three bedrooms, two and a half bathrooms. Over 1700 square feet of living space. There's a master bedroom with a private bathroom. The lower level was remodeled. There's a fireplace with a wood stove insert. A one car attached garage, large deck just under three quarters of an acre. Again, for that price, 415, it does need some work. But trying to get into Mount Airy in that price for a single family home with a garage, on almost three quarters of an acre, and in a neighborhood with no HOA. Hard to find.
Jump on it, babe.
Yeah. So go check out wfre.com. Look up Tom and Jay's Real Estate podcast. If you like what you see, click on the button and we will get you in for private tour.
Jay Day and the Day Home Team of Real Estate Team's Weekly Real Estate podcast. Thank you for listening and tell your friends, tell everybody all about it.