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<\/h2>\n<\/h2>\nLast week the Fed elected not to take any action on rates.\u00a0 There are surely reasons for that, and what, if anything, do those reasons mean for the NOVA real estate market?<\/p>\n
The Fed is continuing in its quest to manage a “Soft Landing” of the economy as they attempt to slay the inflation dragon, which has proved to be a sturdy beast.\u00a0 This should be unsurprising since the cost push components of inflation driven by energy costs remain, as does the excessive government spending.\u00a0 Thus further rate pushes are likely necessary to bring inflation back within acceptable targets (3.7% annualized and .6% in August do NOT qualify).\u00a0 So a hope for moderation of rates towards the end of the year or in the first quarter are not in the cards.\u00a0 So if you are pausing your buying decision waiting for rates to come down, it’s time to change strategies.\u00a0 Ongoing rates in the 7’s means that the effects on the move up market and thus inventory levels will continue.<\/p>\n
We do have some good news on the inventory front, as levels rose the last 2 weeks by 17% total!\u00a0 That still leaves us a long way to go but we’ll take it.\u00a0 That translates to a 1.2 months supply of homes in the region.<\/p>\n
More and more companies are requiring their workers to return to in office work, at least on a part time basis, and we are starting to see what I playfully call “The Reverse Green Acres Effect”.\u00a0 More pedestrianly known as the Boomerang effect.\u00a0 Folks who moved out to the farm during the pandemic to take advantage of remote work are now considering a retreat to housing closer to their physical work places.\u00a0 Depending on the degree to which employers can wrangle their staff back into the offices this could make an impact on market trends.<\/p>\n
Another thing you all have probably been noticing is a steep rise in homeowners insurance rates.\u00a0 They are up nationally 21% year over year and 35% the last 2 years!\u00a0 Ouch. This of course impacts budgets and affordability.\u00a0 \u00a0And many insurers are pulling out of certain states because of wildfires and other natural disasters, and are looking for increasingly creative ways to deny claims.\u00a0 So having the right policy with the right insurer is more important than ever!\u00a0 It might be time for a review of yours.\u00a0 I’d highly recommend it.\u00a0 In fact I’m going through it myself right now, so if you are looking for some guidance feel free to reach out to me.<\/p>\n
It’s a good life.<\/p>\n
Chris<\/p>\n","protected":false},"excerpt":{"rendered":"
Status Quo from the Fed:\u00a0 What does that mean for the Real Estate market? Last week the Fed elected not to take any action on rates.\u00a0 There are surely reasons for that, and what, if anything, do those reasons mean for the NOVA real estate market? The Fed is continuing in its quest […]<\/p>\n","protected":false},"author":2,"featured_media":2420,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,10],"tags":[],"yoast_head":"\n