PITTSBURGH — It’s the first rate cut in four years: a half-percentage point drop by the Federal Reserve, and real estate brokers in the Pittsburgh area believe this is going to stimulate the local housing market and be a positive thing for both buyers and sellers.
First-time home buyer Lauren Fagan set up an appointment to tour a home in the Sewickley area first thing Thursday morning, less than 24 hours after the Fed’s announcement.
“We saw this one pop up last night and shot over here,” Fagan said. “You get more house for the same price.”
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“I would absolutely anticipate bidding wars, which is why I would recommend to buyers jumping in right now. Get going,” said Kathe Barge, associate real estate broker for Piatt Sotheby’s International Realty. “My emails and text messages were flooded with people.”
Barge said her office has noticed a shortage of inventory recently, partially due to homeowners with low interest rates not wanting to move. But she says now is the time to look at the listings.
“With the drop in interest rates, it’s going to allow more people in existing homes to think about a move and not a tremendous increase in the cost of their home. What that will do is free up more inventory,” Barge said.
Barge believes that will have a trickle-down effect, leaving first-time homebuyers like Fagan with more of a selection. Looking ahead, however, she thinks that buyers who have been sitting on the sidelines, waiting for rate drops, are going to come into our market in droves. She predicts a very competitive Spring market and advises those looking to list to get their homes ready for market.
“If you’re a seller with a well-conditioned home, this will be another opportunity for you to capitalize on a great market and maybe make a little extra on your home,” Barge said. “There should definitely be a stronger interest in the buying pool with rates dropping.”
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