Observations about Interest Rates and the Real Estate Market by Endre Barath, Jr. a Beverly Hills Realtor

Yesterday morning at 11:19 a.m. we made our official farewell to Summer 2025 (the autumnal equinox).  The Federal Reserve finally lowered the benchmark federal interest rate by 0.25% on September 17th, the first rate cut of 2025. If you are one to keep current with the media, this rate cut has shown a great deal of encouraging headlines. As I stated in the beginning of September, I expect this to boost individual buyer’s activity as well as investor activity in the Greater Los Angeles area. Many buyers who were previously borderline due to lack of affordability should now turn into actual buyers.  Add to the mix other buyers who were sitting on the fence; they too should now be encouraged to step into the market as well, further increasing activity in the greater Los Angeles area.

Needless to say, with more buyers competing for the same amount of home inventory will translate to sellers being firmer on their list and sales price.  As you’ve often heard me say, “do not wait too long” because the competition will increase and you may very well miss out to savvy buyers and savvy investors.

Another point of interest, I have started to notice economists making predictions about how home prices will be increasing in my market area. Even the California Association of Realtors’ economists have made a prediction and anticipate home prices to increase by about 3.6%. So, with that said my advice and suggestion is don’t wait, buy now.

Real Estate buyers and sellers have a Herd Mentality meaning that when the majority buys or does not buy they follow suit.  Hence my suggestion is to become the leader of the herd; you will thank me six to eight months from now.

In addition to selling homes and condominiums, my niche market is selling vacant land. This gives me the ability to gauge whether builders’ sentiments are improving or staying the same. This is based on both the number and type of land inquiries I receive on my listings. With that said, my take is that builder sentiment has remained unchanged over the past three months, but now I am starting to see an increase in inquiries on my land listings. Clearly this is a good sign of things to come.

Finally, let’s add to the mix the seasonal changes.  In my experience, I have always found that the Fall is a great time to buy or sell a home. There is less competition due to parents focusing on back to school and the majority of people overall focusing on the quickly approaching holiday season. The best part for sellers is that the buyers who are out there are serious, real buyers.

In closing let me reemphasize to take advantage of the lower interest rate which is more favorable to affordability. Don’t wait to see if additional rate cuts are coming in the final months of the year. Keep in mind, you can always refinance if it is in your favor.

If you are looking for a pet friendly Beverly Hills Realtor who can handle the most challenging properties that no one else could, please reach out to me directly. If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com. Berkshire Hathaway Beverly Hills

A portion of my commission will be donated to a local and reputable animal rescue organization or cause.