top of page
Search
  • Writer's picturemhpaugusta

Real Estate Rollercoaster: Navigating the Impact of FEDs Rate Decision on Augusta's Market




Real estate news is big this week as the FED’s have agreed that they are done

raising the rate for the immediate future, and there may be some very small

adjustments moving rates down in the first quarter of 2024. This should be good for our

area.


Hopes are high to see some major adjustments, but that is very unlikely. Stability

is coming, and everyone is ready for it, it just will unlikely meet the hopes of consumers.

I feel very strongly that if you can get a loan and your interest rate is anywhere from

5.5% to 6% you are in a good position. Consider that if the going rate is 6.5% you may

need to buy down your rate to get to 5.5% and that is the wisest way to combat the

current rate.


Just this seemingly minor adjustment changes most mortgage payments a

couple hundred bucks a month! That’s a big budget saver and will provide a lot of relief

to our wallets.


In other local real estate news, rent rates are dropping. This is likely due to

tenants renewing current leases and staying put, causing a large surplus of homes

available for rent. Additionally, most renters turn into buyers, so the higher rates affect

the cycle.



As a landlord, you may have to reduce rent and offer some credits to application

fees or waive other expenses to find a tenant to occupy your rental. Also be prepared for

some possible vacancy dates, something that we generally never see here in Augusta.

If you are in the market to buy or sell, it's time to reassess your expectations for

how quickly a home will sell. Our market is still stable, but it is taking 30-75 days to sell

instead of the hours it was taking in the past few years.


This brings us to a more balanced market. As a seller, you will need to be more

diligent getting your house ready to sell and be willing to price lower than you may have

anticipated. Buyers are looking for and expecting a deal, since the rates have increased

so rapidly, and that's who you will need to appeal to when you sell. For most price

points, we have a 2 - 3 month supply of homes available today. As spring approaches, I

expect that to jump, and if the interest rates have not been corrected yet, plan to wait on

a buyer OR price below all your competition.


It feels like we are waiting on the groundhog?! If the anticipated rate drops come early in the year, expect to see a ton of movement, but buyer and seller beware, if the rates stay until the summer, it will be a long and miserable spring.



9 views0 comments
bottom of page