Real Estate Insights

September 2024

A quick 5 minute read

The Fed (Finally) Lowers Interest Rates

After months of yoyo-ing expectations regarding how any times the Fed will lower interest rates this year (in January, 3...in April, maybe 1...in August, 3 again), The Fed finally took action a few days ago and lowered rates by 0.5% - with 2 additional rate cuts anticipated before the end of the year.

While mortgage rates are only loosely correlated to the Federal Funds Rate, this near term downward trend should help drive mortgage interest rates lower in the coming months. That's right, the days of 5.x% interest rates may be back sooner rather than later. This in turn may spur more buyers to enter the market resulting in greater competition and rising home prices/values.

While it is hard to predict how quickly this all may happen, our advice to buyers is that it may be advantageous to buy now even though mortgage interest rates likely will decrease in the near future. Why? Because you can lock in a lower purchase price (and lower property taxes, closing costs, etc.) and then refinace if/when the interest rates drop in the coming months.

While this advice may run counter to some of the current national predictions in the media, our local market often behaves much differently than other markets. At least in our office meeting, competition and sales have already picked up.

Don't Blink!

That is our oldest "baby," Jack, at 7 years old. We are happy to announce that Jack is now not only a Berkeley Law Grad, but also gainfully employed!

After a lengthy job search, Jack accepted a position at the Eviction Defense Center (EDC) in Oakland. The EDC provides free and low cost legal services to tenants who are facing eviction or have other housing related issues. With this job, Jack continues to indulge his passion for helping those who may not have the knowledge or resources to understand their rights in legally complex situations.

Furthermore, this means that Jack is no longer on Mom and Dad's payroll (cue the celebratory brass band)! A good thing, too, since he turned 26 earlier this month, and that is the magic age after which kids can no longer be on their parents' insurance plan. Call it a win-win!

We are very proud of Jack and all that he has accomplished already - and has yet to accomplish in the future. Jack's chosen area of law won't likely make him rich, but he will do a lot of good.

Local Market Trends

We have access to a tremendous amount of real estate data, most of which is way more current than you read in the press. If you want to take a deeper dive into the latest numbers, start here:

San Mateo County Real Estate Report

Santa Clara County Real Estate Report

Links not working? Email jbarman@compass.com and I will send you a PDF of the same info.

Want to see the data for a specific city? Let us know and we will gladly forward that along!

Featured Listings and Sales

Luxury Property Collection

Looking for a luxury property or even a brief escape from reality? Flip through our online magazine, Compass Luxury, for some of the most exclusive listings in the United States.

Please feel free to forward this newsletter to friends and family - and remember, we are never too busy for your referrals!

Janie and John Barman

DRE #01270223 & #01281597

Realtors®

M: 650.759.1182

jbarman@compass.com

JanieandJohn.co