Interest rates UP Home prices Down ?

The Federal Reserve appeared to keep an interest rate hike on the table for September amid “fairly accommodative” commercial real estate financing markets.  The participants generally agreed that the prompt recovery of financial markets following the Brexit vote and the pickup in job gains in June had alleviated two key uncertainties about the outlook.  images-5

The Fed decided to keep rates unchanged in July, but the newly released minutes show it is somewhat confident in the U.S. economy, making future rate hikes more likely.   As usual, monetary hawks and doves in the committee appeared to disagree over how soon to raise rates.

The Fed makes monetary policy in part by setting a target range for the federal funds rate – the benchmark interest rate banks charge each other for overnight loans. Higher short-term rates tend to spill over into higher long-term interest rates, which raise the cost of real estate financing and can put downward pressure on property prices…images-1

Attempting to time the housing market is never a good strategy but if your planning on selling sooner might be better than later –  Or if your looking to buy in the near future taking your time might be advised –

Hm Calculate

Either way keep an eye on home prices this fall —

Now, here’s a weird story out of New Jersey with a Hollywood connection  —

A lovely colonial home recently listed for sale in Westfield, N.J., comes with six bedrooms, hardwood floors and a disturbing back story that left its last owners living in fear.

The house was considered a dream home by Derek and Maria Broaddus when they purchased it for themselves and their three small children in 2014. But three days after they closed, a letter arrived signed by someone who went by the name “The Watcher”images

The writer claimed that the house was a family obsession: “My grandfather watched the house in the 1920s and my father watched it in the 1960s. It is now my time.”

More correspondence followed that grew increasingly threatening, and specific.  The writer wanted to know whose bedroom faced the street, and criticized changes that made the home more “fancy.” The letters hinted that the writer had identified the children: “I am pleased to know your names now and the name of the young blood you have brought me.”

UnknownFearing for their safety, the Broadduses never moved in.   Instead, they hired an F.B.I. profiler, who deduced from the handwriting on the envelope that “The Watcher” was likely an older person.   The couple sent the letters to the Westfield police, who found the DNA of a woman on one envelope but never landed on a suspect.

Finally, they brought a lawsuit against the former owners, that said the sellers had also received an anonymous letter but had kept that information secret.   And of course the Sellers have filed their own  lawsuit accusing the new owners of frivolous litigation and defamation.

The danger-in-suburbia story was picked up by local broadcasters and soon grew into a media circus. The identity of “The Watcher” has become the subject of intense man-magnifying-glass-cartoon-design-vector-clipart-created-adobe-illustrator-eps-format-illustration-use-web-41776246curiosity.
Theories abound –

  • Was “The Watcher” a disgruntled potential buyer who balked at the $1.3 million price tag?
  • Was it masterminded by the Broadduses themselves, to get more money out of the previous owners?
  • The Hollywood theory, that it’s all a publicity stunt, has had    perhaps the most subscribers.  Because believe it or not 

    “The Watcher” is now being developed by the executive 

    producer of “Homeland” and was bought preemptively by        

 NBC.

In the end the house, which has been improved and maintained by the Broadness is now being sold again –  At a lower price  $1.2 million and according to the listing agent –images

 

 

“Someone’s going to get a great house.”

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