New Year, New Trends, New Plan?

Question

Good morning BP, Happy New Year!

First off, let's address the elephant in the room. The Fed announced they are dropping interest rates four times throughout 2024. I feel as if, for the past year/year and a half everyone has been waiting for some type of ball to drop, some huge change in the market, a huge crash, etc. However, even though conditions have been rocky it has seemed to stay fairly steady here in ATL.

In your opinion, how do you think interest rates dropping will affect or not affect the market trends in your area? Are you adjusting your plan to accommodate the change? Are you sitting back and waiting for Q2?

Morgan Gutierrez · Answer

If only we had a crystal ball...

I think there will be more people buying while the rates are lower. There have been people renting after selling waiting for prices to calm and rates to decrease. I think the prices will stay fairly stable. Some areas may be receiving multiple offers again especially if sellers are not increasing prices.

Peter Mckernan · Answer

Continue to buy if the right deal comes along, for example bought something three months ago, hard money loan and the deal is 60% of ARV. These deals will continue to happen even in great markets, and the bad markets they will happen as well. Time in the market is the best and with the rates already dropping (just got a buyer that closed on a primary 5.99% a week ago), there will be more demand, and the inventory will stay tight even with some sellers now getting the fatigue of not wanting to be in their place anymore, so they are good listing and getting a 5% rate verse their 3.5% or 4% rate they have now.