The 1,650 Day Wait is OVER.

After a long stretch of 1,650 days, the Federal Reserve finally cut interest rates by 0.5%, sending a strong signal that change is on the horizon for both buyers and sellers. This move could have lasting impacts on the housing market, and here’s what you need to know moving forward.

For Buyers: Your Window of Opportunity

Mortgage rates spiked to nearly 8% in 2023, leaving many buyers priced out. Now, with the Fed’s rate cut, we could start to see some relief. This cut might trigger a trend of lowering mortgage rates, giving you a better chance to afford homes that were once out of reach. So, if you've been holding back due to high rates, now is the time to get back in the game.

That said, don’t expect immediate magic. Mortgage rates may take a little time to adjust. My advice? Keep your eyes peeled for rate drops and be ready to act when the moment comes. Getting pre-approved for a mortgage now will give you a head start when the conditions turn in your favor. But be prepared—more buyers re-entering the market could mean bidding wars in hot spots.

Pro Tip: If you’re serious about buying, get pre-approved for a mortgage now. Timing and flexibility will be key as this market shifts.

For Sellers: More Buyers, More Competition

Good news for sellers: lower interest rates mean more buyers in the market. This uptick in competition could drive up prices and help homes that have been sitting on the market finally find buyers. But here's the catch—you’ve got to be realistic. While you might see more activity, the days of runaway bidding wars aren’t guaranteed to come rushing back. Pricing your home correctly and making sure it’s in great shape will still be critical to attracting serious buyers.

Pro Tip: Get your home ready NOW to sell spring 2025.. Team up with a real estate agent who knows the market to help you price it right and make sure your home stands out from the crowd.

The Bigger Picture: What’s Next?

This rate cut is likely the first of more to come. While this is a positive sign for the housing market, the overall economic outlook still remains uncertain. We’re still seeing home prices near all-time highs, and while lower interest rates will help with affordability, it’s not a quick fix. It might take time for the market to balance out completely.

My Advice for Both Buyers and Sellers

Buyers: Stay informed and be ready to move when rates drop. You don’t want to miss your shot at locking in a favorable mortgage rate.
Sellers: Price your home competitively. Even with more buyers in the market, overpriced homes will struggle to sell.

In short, the Fed’s rate cut opens a new chapter for the housing market. While it won’t solve every issue overnight, it’s a step in the right direction. Buyers and sellers alike should keep an eye on the trends and be ready to act when the timing is right.

Need help navigating these changes? Reach out—we’re here to guide you through this evolving market.

YOUTUBE
Has Cambridge, MA Real Estate PEAKED?

If you’re tracking the Cambridge real estate market, the latest data offers some revealing trends that can help guide your next move—whether you’re looking to buy, sell, or invest. Here's a breakdown of the most important figures shaping the market today.

Inventory and Absorption Rate

One of the standout trends this year is the similarity between 2023 and 2024 when it comes to median list prices. However, the real story lies in the absorption rate, which measures the balance between supply and demand. In 2024, the absorption rate sits at 3.64%, matching levels not seen since 2020. This indicates that buyer activity has slowed compared to available inventory, especially as we head into Q4, a traditionally slower period.

For buyers, this signals potential opportunities. If absorption remains low, sellers may become more willing to negotiate, and you might find homes selling below list price by the end of the year.

Median Sale Prices: What to Expect

From 2020 to 2024, median condo sale prices in Cambridge have fluctuated, reaching a high of $943,000 in 2022 before dipping slightly in 2023 to $925,000. As of 2024, the median has risen again, albeit modestly, to $934,000. However, with Q4 typically being a slow season, we could see this number decline further before the year ends.

Tip for Buyers: Keep an eye on the market through the next quarter. You may have a chance to secure a property below the median price, especially if inventory continues to outpace demand.

Cash Buyers Dominate

In an interesting twist, 38% of condo sales in Cambridge this year have been to cash buyers, a significant rise from previous years. Many buyers are tapping into retirement accounts or other reserves to purchase properties outright, with plans to refinance when interest rates become more favorable. This trend is a reminder of the competitiveness of the Cambridge market, where cash offers can still win out over financed deals.

For Sellers: If your home isn’t selling, the influx of cash buyers means you need to position your property correctly to attract attention. Partner with an agent to price and market it strategically in this environment.

What's Next?

Looking ahead, the market is likely to remain steady without major price hikes. However, low absorption rates and unsold inventory could create opportunities for buyers to negotiate better deals. For sellers, this means the importance of strategic pricing is higher than ever.

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Hey there 👋 I'm Mike, an award-winning Realtor here in Boston, Massachusetts with a successful track record of selling hundreds of homes over the last eight years. My professional background extends beyond real estate sales, encompassing over a decade of experience as an electrician. I lead a team of over 90 agents throughout multiple states, each dedicated to providing exceptional service.

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