Timing is everything when it comes to the federal funds rate. Economists are increasingly confident that the first rate cut since 2020 could happen as flowers are blooming in the late spring and early summer. This aligns with what Mortgage Bankers Association (MBA) Chief Economist Michael Fratantoni suggested during October Research’s 2024 Economic Forecast webinar in January.
Federal Reserve Chair Jerome Powell revealed he believes the financial markets are “in the right place” for a cut in the coming months while testifying before the Senate Banking Committee on March 7.
“We are waiting to become more confident that inflation is moving sustainably down to 2 percent,” Powell said. “When we do get that confidence, and we’re not far from it, it will be appropriate to begin to dial back the level of restriction so that we don’t drive the economy into recession.”
Report Shows the Cost of Homeownership and Rent is Out of Reach for Many in the Hudson Valley
Hudson Valley Pattern for Progress has released a report that claims the path to homeownership is shut down in the region, as median home prices exceed mortgage qualifications by more than $100,000 in all nine counties the organization serves.
The not-for-profit blames the affordability crisis for housing in the region on stagnant wages, increasing rents and skyrocketing home prices that have stretched household budgets to their limits. Among the report’s findings include that single adults working 40 hours per week on average renter wages cannot afford a one-bedroom apartment in any of the nine counties. Renters would need to earn anywhere from $1 to $26 more per hour to afford rent in their respective counties. Renters in every county are considered “cost burdened.” Also, fair-market rents would need to decline anywhere from $33 to $1,343 per month to make them affordable for a person earning average renter wages across the region.
ERC Summary Appraisal Report
Existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020, according to the National Association of Realtors. Month-over-month sales rose in all four major U.S. regions. All regions posted year-over-year declines, according to the report released today.
Between January 2023 and February 2023, closed regional sales transactions, including residential, condo, and co-op sales, decreased to 2,988 from 3,621, representing a 17.50% decline. Across the region, pending sales transactions rose in a month-over-month comparison, reaching 3,974 in February, 23.30% more pending transactions than the 3,224 reported in January.
While any astute real estate professional will tell you it's nearly impossible to time the real estate market, there is one week that is most likely to get home sellers the best possible outcome, according to Realtor.com. Nationally, homeowners who list the week of April 16-22, 2023 will hit the sweet spot in terms of the best combination of higher prices, fewer homes to compete against, faster sales time and strong buyer demand.
Pending home sales improved in January for the second consecutive month, according to statistics released today by the National Association of Realtors. All four U.S. regions posted monthly gains but saw year-over-year drops in transactions.
The Pending Home Sales Index improved 8.1% to 82.5 in January. Year-over-year, pending transactions dropped by 24.1%. An index of 100 is equal to the level of contract activity in 2001.