Hello everyone. As we edge closer to 2024, it’s time to reflect on shifts in the economic landscape, particularly having to do with lending. Recently, policy changes by the Federal Reserve to lower rates in 2024 made big headlines. Today, we will discuss the implications of the Fed’s decision to pause rate hikes. As well as their plans for FUTURE RATE REDUCTIONS. Additionally, we will be going over fresh data for our local market in ‘The Valley’. Important stuff, indeed.
The Federal Reserve’s latest announcement signifies a CRUCIAL TURN in their approach to managing the economy. Finally.
This shift signals a more optimistic economic outlook. The Fed now deems the positive changes sufficient to consider reducing rates. This is expected to influence the market. Significantly. Especially in growing states like Arizona.
The housing market in Greater Phoenix is under SCRUTINY following these monetary policy changes.
It’s critical to recognize that while the federal funds rate impacts mortgage rates, it isn’t the sole determinant. Lenders weigh VARIOUS ELEMENTS. Factors include inflation expectations and the mortgage-backed securities market.
Understanding the supply and demand in Greater Phoenix’s real estate is paramount to making SOUND decisions.
The Cromford Market Index (CMI) is an insightful tool for gauging MARKET HEALTH. As of 12/19/2023, it shows a balanced market, with no significant shifts in demand or supply. We consistently update our website as the CMI changes. It is worth noting, this is the closest we have seen the supply and demand index. Over the past year or so, the supply index was MUCH LOWER. Hence, demand overpowered supply by a larger margin.
As 2023 draws to a close, understanding the POSSIBLE future of the Greater Phoenix housing market is essential.
The recent Federal Reserve policy changes and their potential impact on Greater Phoenix raise several questions. While lower rates may boost demand, other factors like SEASONAL TRENDS and PRICING STRATEGIES could play significant roles. Especially over the first quarter of 2024. Only time will tell. Rest assured, we’ll be talking about here on LUXE BLOG.
Part digital, a WHOLE bunch human, Williams Luxury Homes is a boutique brokerage in Scottsdale. In WLH, you have an eclectic group of NICHE SPECIALISTS. All of whom are handpicked. Our divisions include Property Management, Celeb & Sports, WLH Studios, Artificial Intelligence, Developer Sales, and our upcoming commercial department. Bottom line is we know this market. And more importantly, how to represent our clients’ BEST INTERESTS. If you’d like to learn more, feel free to let us know.