MICHAEL. GERRI. IT DOES MEAN THIS IS DEFINITELY AN APPETITE. I SHOULD SAY OUT THERE TO BE ABLE TO BUY HOMES. CASE IN POINT THE HOME RIGHT BEHIND ME. IT WENT FOR SALE AND IT IS NOW OFFICIALLY SOLD HERE IN A PRETTY AFFLUENT COMMUNITY IN LANCASTER COUNTY. AND A LOCAL REALTOR TELLS US THAT THIS CUT THAT JUST HAPPENED MAY SPUR PEOPLE TO COME ON OUT AND BUY, OR AT LEAST START LOOKING FOR THE HOME OF THEIR DREAMS. SO TODAY IS AN EXCITING DAY, RIGHT? A DRAMATIC SHIFT AFTER MORE THAN TWO YEARS OF HIGH RATES, THE FEDERAL RESERVE CUT ITS BENCHMARK INTEREST RATE BY A HALF A POINT. AND SOME SAY IT’S GOING TO MAKE A MASSIVE DIFFERENCE. IT’S ACTUALLY GOING TO SPUR BUYERS TO COME BACK OUT INTO THE MARKET. SEAN GARMAN IS THE COPARTNER OF GARMAN BUILDERS. A LONGTIME REALTOR BASED IN LANCASTER COUNTY, AND HE BELIEVES THIS IS A STEP IN THE RIGHT DIRECTION FOR HOMEBUYERS. OVER 80% OF MORTGAGES TODAY ARE UNDER 6%, SO WE’RE BACK DOWN AT THAT 6%. NUMBER, AND IT REALLY GIVES THEM ABOUT $70,000 MORE IN BUYING POWER THAN WHAT THEY WOULD HAVE HAD FROM OCTOBER OF LAST YEAR. BUT FOR THOSE LOOKING TO SELL. GARMAN BELIEVES IT WILL TAKE SOME TIME FOR THEM TO NOTICE THE CHANGE, BUT THEY SHOULDN’T BE CONCERNED AS THE RATE NOTICE COMES OUT TO PEOPLE OR THEY BECOME MADE AWARE OF IT. THAT’S GOING TO TRICKLE INTO THE MARKET A LITTLE BIT SLOWER. IF SOMEONE’S BEEN IN THE MARKET AND HAS BEEN LOOKING FOR SOME TIME, THEY’RE GOING TO ACT PRETTY QUICK. SO WHEN A HOME COMES UP, IT’S GOING TO MOVE PRETTY QUICK. AND HIS NUMBER ONE PIECE OF ADVICE. IF RATES GO UP YOU CAN’T CHANGE YOUR RATE. IF RATES COME DOWN YOU CAN ALWAYS REFINANCE. SO I ALWAYS SAY NOW’S THE TIME TO BUY IN. GARMAN SAYS THE TREND HE’S BEEN NOTICING IN THE SUSQUEHANNA VALLEY FOR QUITE SOME TIME IS ESSENTIALLY THAT THERE HAS BEEN A LOW INVENTORY WHICH HAS CREATED WHAT HE CALLS BUYERS FATIGUE. BUT HE’S HOPING THAT THIS CUT AGAIN WILL SPUR PEOPLE TO GET OUT AND START LOOKING FOR THE HOME OF THEIR DREAMS, BECAUSE ULTIMATELY, IT WILL CREATE MORE AFFORDABILITY.
Federal Reserve rate cut could boost south-central Pennsylvania housing market
The Federal Reserve’s interest rate cut on Wednesday is expected to stimulate the housing market in the Susquehanna Valley, according to a local realtor.”So, today’s an exciting day,” said Shawn Garman, co-partner of Garman Builders.The Federal Reserve cut its benchmark interest rate by a half-point, marking a significant shift after more than two years of high rates.”It’s actually going to spur buyers to come back out into the market,” Garman said.Garman, a longtime realtor based in Lancaster County, believes this move is beneficial for homebuyers.”Over 80% of mortgages today are under 6%, so we’re back down at that 6% number. And it really gives them about $70,000 more in buying power than what they would have had back in October of last year,” he said.For those looking to sell, Garman noted that the impact might take some time to become noticeable. However, sellers should not be concerned.”As the rate notice comes out to people and people become aware of that, it’s going to trickle into the market a little slower. If someone has been in the market and has been looking for some time, they’re going to act pretty quick. So, when a home comes up, it’s going to move quick,” he added.Garman’s primary advice to potential buyers is to act now.”If rates go up, you can’t change your rate. If rates come down, you can always refinance, so I always say now is the time to buy,” he added.Garman has observed low inventory in the Susquehanna Valley for quite some time, which has created what he described as “buyer fatigue.” He still believes the rate cut will ultimately bring more homes onto the market by increasing affordability.
The Federal Reserve’s interest rate cut on Wednesday is expected to stimulate the housing market in the Susquehanna Valley, according to a local realtor.
“So, today’s an exciting day,” said Shawn Garman, co-partner of Garman Builders.
The Federal Reserve cut its benchmark interest rate by a half-point, marking a significant shift after more than two years of high rates.
“It’s actually going to spur buyers to come back out into the market,” Garman said.
Garman, a longtime realtor based in Lancaster County, believes this move is beneficial for homebuyers.
“Over 80% of mortgages today are under 6%, so we’re back down at that 6% number. And it really gives them about $70,000 more in buying power than what they would have had back in October of last year,” he said.
For those looking to sell, Garman noted that the impact might take some time to become noticeable. However, sellers should not be concerned.
“As the rate notice comes out to people and people become aware of that, it’s going to trickle into the market a little slower. If someone has been in the market and has been looking for some time, they’re going to act pretty quick. So, when a home comes up, it’s going to move quick,” he added.
Garman’s primary advice to potential buyers is to act now.
“If rates go up, you can’t change your rate. If rates come down, you can always refinance, so I always say now is the time to buy,” he added.
Garman has observed low inventory in the Susquehanna Valley for quite some time, which has created what he described as “buyer fatigue.” He still believes the rate cut will ultimately bring more homes onto the market by increasing affordability.
