Across the country, sellers are holding out for rate cuts to send their property values higher. It is one of the most widely held assumptions in real estate right now — and according to Oron Maher, Broker-Director at Maher Commercial Realty, it may be one of the most costly.
In this video, Oron Maher breaks down the three things every seller needs to understand before making a decision based on where rates are heading.
1️⃣ The magic moment was already priced in. Institutional capital moves on expectations, not announcements. By the time a rate cut is official, the market has already responded.
2️⃣ The Fed controls the overnight rate — not mortgage rates. Those two numbers can and do move in opposite directions. Conflating them is a mistake sellers make at significant cost.
3️⃣ Large, aggressive cuts are the Fed’s medicine for a sick economy. A weakening economy compresses rents and erodes the very valuations sellers are counting on. The cure can accelerate the problem.
Slow, sustained growth is the only kind that holds. When property values rise because rents are stronger and demand is genuine, that appreciation survives a rate move. When they rise on rate cut speculation alone, it does not.
For sellers evaluating their timing in today’s market, this is the perspective that actually matters.
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