Is Real Estate Pivoting With The Fed? - Apr. 2023 LA Housing Market Update
It looks like we could be at the beginning of another transition in the real estate market as a result of the recent pivot by the Fed that I've been anticipating for some time and now the market is too. Most market participants believe the Fed is now going to "pause" their rate hikes and soon start lowering rates, which would once again become a tailwind for RE prices just as it has for so many years.
In addition, more programs continue to crop up, allowing buyers to buy homes with little to no money out of pocket, adding another pillar of support. It could be that the lows are in for real estate prices. Either way, I would suspect that once enough market participants believe rates will be lower in the future than they are today, we will see a huge increase in demand, and we all know where that leads. That said, if there's one thing we can be sure of, it's the future is often full of surprises.
