Are Rate Cuts Around the Corner?

Are Rate Cuts Around the Corner?

The latest jobs report has everyone buzzing, and it could play a big role in what the Federal Reserve decides to do with interest rates later this month.

Here’s the snapshot:

• Job growth is cooling off. In July, only 22,000 new jobs were added nationwide, well short of the 75,000 that economists had expected.
• Earlier job reports were revised down dramatically. What originally looked like healthy numbers in May and June ended up shrinking to just a fraction of what was first reported.
• The unemployment rate edged up slightly from 4.2% to 4.3%.
• Even payroll data from ADP came in light, showing 54,000 new jobs instead of the 75,000 forecast.

All of this signals a softer labor market, which the Fed will definitely be weighing when they meet on September 16th. Many are thinking this increases the odds of a rate cut.

A Closer Look at the Job Market

Beyond the headlines, here are a few details about who’s working, and who isn’t:

• The total labor force is about 171 million people, with roughly 7.4 million unemployed.
• Teens have the highest unemployment rate at 13.9%, while Asians have the lowest at 3.6%.
• For adults 25 and older, unemployment averages 3.4%. Education makes a difference:
• College graduates: 2.7% unemployment
• No high school diploma: 6.7% unemployment
• About 1.9 million people have been out of work for more than six months, which is considered long-term unemployment.

Why This Matters for Real Estate

What does all this mean if you’re thinking about buying or selling a home? A softer job market often nudges the Federal Reserve toward lowering rates in order to keep the economy steady. If the Fed cuts rates later this month, it could bring mortgage rates down as well.

For buyers, that means an opportunity to lock in a lower monthly payment. For homeowners, it could open the door to refinancing and lowering overall housing costs. And for sellers, lower rates can attract more buyers into the market.

In short: economic shifts like this can create windows of opportunity. If you’re curious about what these potential changes could mean for your specific situation, let’s connect.

Final Thoughts

The job market data may seem like just numbers on a page, but it has real ripple effects on our daily lives, especially when it comes to housing. If rates do come down, it could open up opportunities whether you’re looking to buy, sell, or refinance.

As always, I’m here as your trusted resource. If you’d like to talk about how these changes might impact your plans, don’t hesitate to reach out.

Wishing you a successful, positive, and healthy week ahead!

Coffee, Apple Pie & the American Dream

Blessings to you and yours,

Sonja :)

Why Selling Without an Agent Can Cost You More Than You Think

Cutting out the agent might seem like a smart way to save when you sell your house. But here’s the hard truth.

Last year, homes that sold with an agent went for almost 15% more than those that sold without one.

That gap is pretty hard to ignore. And with more homes on the market to compete with right now, selling on your own is a mistake that’s going to cost you.

This Isn’t the Market for DIY Selling

A few years ago, you might’ve gotten away with a “For Sale By Owner” (FSBO) sign in your yard, navigating the process on your own. That’s because homes were flying off the market and buyers were pulling out all the stops. But that’s just not the case anymore. With more inventory than we’ve seen in years, we’re not in a “list it and they will come” market anymore. You need professional expertise.

A yard sign and some photos you take on your own won’t cut it.

Right now, the housing market is getting back to what most would consider a more normal balance of buyers and sellers, and that really changes the game. According to Realtor.com, the latest number of listings for sale was the highest it’s been in any month of July since 2019 (see graph below):

And while inventory growth is going to vary by local market, nationally, this graph shows the number of homes for sale is inching back toward normal.

With more listings available, that means buyers can be more selective. They’ll compare your home to others on price, condition, photos, location, and more. If yours doesn’t stand out, it will get skipped over.

More Inventory = More Competition for You

Selling today requires the latest pricing strategy, expert prep work, professional marketing, and strong negotiation skills. And if you’re not bringing all of that to the table, chances are, you’re going to feel it in your bottom line.

More Homeowners Are Turning To the Pros

That’s why even more home sellers are working with agents today. Data from the National Association of Realtors (NAR) shows a record-low percentage of homeowners sold without an agent last year. And the few sellers who tried to sell on their own realized their mistake pretty quickly.

According to Zillow, 21% of homeowners ended up hiring an agent anyway after struggling to sell on their own.

So, why take the risk? With a local pro, you'll have:

• Pricing precision to attract buyers and maximize your return
• Expert staging and presentation advice to highlight your home’s best features
• Pro-level marketing, including the best exposure and access to buyer networks you can’t reach on your own
• Skilled negotiation to evaluate offers and navigate inspections, protecting your bottom line
• Local market expertise that helps your listing stand out based on what inventory looks like in your area
•  

An agent's expertise isn’t optional anymore. It’s essential.

Bottom Line

In a market with more listings and pickier buyers, many sellers who try to sell on their own end up working with an agent anyway. So why not start there?

Let’s connect so you have a pro who knows exactly what it takes to sell your house in today’s market, for the best possible price, without leaving money on the table.

Reach out if you want a professional assessment on what your house could sell for today.

Here's to a week full of success and positive vibes.

Sonja :)