Can the Fed bring Stability???

By
Real Estate Agent with Keller Williams Utah Realtors

 Interesting question.  There are some great debates over this issue with respect to our industry (REAL ESTATE).  There is probably little doubt that the Fed will lower the target for the Fed Funds by 1/4 percent (possibly by a 1/2%).  What does this mean for us in the real estate industry?  Hopefully with the lower short-term rates, this will help those with short-term financing tied to the prime rates.  In the end remember that the Fed plays a role in helping maintain a good supply of money in the market, but the market is driven by supply and demand.

Indirectly we hope to see a reduction in long-term interest rates and creating more money for the real estate market.  According to an article on CNBC today, the CEO's of both Fannie and Freddie are not expecting the market to pull out of the current situation until 2010. 

For us as agents that means a weeding out, and a better conviction to making the calls and driving business (Lead Generation).  The current situation will create an interesting dynamic, that to a large extent we have seen in our market before, but will add some new twists on how to compete and be profitable.

The good news is that buyers and sellers will need our services more now than in the past.  Buyers will need professionals to help them find and price homes reasonably.  Buyers remember you should never pay more than the current market.  Sellers, you'll need help in determining where you need to be to sell.  This current market will only get better for the professional who is not afarid to work!  Good Luck!

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Rainmaker
575,658
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re
Lower rates make people feel some better but we need good economic news and leadership to bring us out of the mess we are currently in. Have and Great Holiday season and Get out and vote for change next year.
Dec 11, 2007 03:37 AM #1
Rainer
4,895
Jack Tapping
Fizber - Chicago, IL

I prefer FSBO. There is much time to have and pay your house. And I like FSBO sites too. And I found really great site!!!!! It was called Fizber. I think the best service was real estate forms at http://www.fizber.com/real-estate-forms.htm.

Jul 15, 2008 01:57 AM #2
Rainer
11,801
Ryan Trask
3plains - Shakopee, MN

Jason, no, no and no again. The Fed will only exasorbate the problem with their current band-aid as Bernanke runs the presses till they run out of paper and make my $1 worth nothing. US Currency going up? Ha, maybe in the shortterm.

The/A problem: http://www.youtube.com/watch?v=Y3oAcQ11LhE

Jul 31, 2008 09:01 PM #3
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Jason Botelho

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