The Fed’s recent announcement will have a huge impact on the economy, for both buyers and sellers alike.
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In recent news, as of September 20th, the Fed met and made a huge announcement that’s going to have a massive impact on the real estate market.
They announced that they’re going to start cutting back their balance sheet.
Ten years ago during the financial crisis, the Fed injected an enormous amount of money into the economy, $3.5 trillion, in order to get the economy back on track.
Now that the economy has stabilized, the Fed is going to start pulling that money back out. They’ve announced that they’ll begin buying back $10 billion in financial assets that they purchased in 2007 and 2008.
If you are thinking of buying a home, this move will eventually make it more expensive for you to do so.
You might be wondering how this will impact you as a potential buyer or seller. If you are thinking of buying a home, this move will eventually make it more expensive for you to do so. You might be able to buy a $300,000 home today with your current income, but two years from now you may only be able to afford a $250,000 home.
And if you are looking to sell your home, this might mean there will be fewer interested buyers. This might drive prices down and might make it harder to sell.
It’s a very unique situation for buyers and sellers right now. The market is complicated and ambiguous, so it’s important that you give us a call, as your real estate adviser and expert, so we can guide you through this and help you get the best outcome possible. We look forward to hearing from you.
