Coldwell Banker CEO Kamini Lane joins Wealth! to break down the three things homebuyers need to watch out for during the rest of 2024 and into 2025.
First, Lane explains that homebuyers should watch the Federal Reserve’s interest rate cuts. The Fed initiated a 50-basis-point cut at its September meeting, kicking off its rate-easing cycle. Its next interest rate decision will be in November.
Second, she emphasizes the importance of inventory. She notes that the US housing market has seen historically low inventories, which has “exacerbated” affordability issues. As inventory hits the market, price pressures should alleviate, explaining, “More inventory equals more choice and more affordability.”
Lastly, she sees increased potential for buyers to have more power at the negotiating table: “If we start to see days on market increase and we start to see potentially the market shift toward a buyer’s market — because it has been a seller’s market very much so for the last couple of years — then buyers will have more potential and more power at that negotiating table.”
Lane adds, “It remains to be seen, but I think it’s an interesting prospect to keep an eye on.”
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This post was written by Melanie Riehl