Happy New Year! I hope everyone is completely thawed out from our snow event. How neat was that? Apparently the island received about an inch of the fluffy white stuff. Galveston kiddos don’t often get a snow day, so I’m sure it was doubly fun for them. And according to a plumber I talked to a few days later, there seemed to be minimal issues with broken pipes. Having power through an event like that probably made the biggest difference from the 2021 storm.
It’s a new year, with a new administration in DC and hopefully a new real estate market in Galveston. While we received the interest rate cuts we were expecting in the 4th quarter, yields on the 10-year treasury did not participate in the party. Mortgage rates are tied more closely to the yield on the government-issued 10-year treasury bond, not on the federal funds rate, which is the rate you hear about on the news. So not only did mortgage rates not drop, they actually increased a bit at one point. Analyst speculation on the yield’s movement is that the incoming administration’s stance on tariffs and other economic agendas may prove to be inflationary. So what does this mean for you and the Galveston real estate market? We’ll all likely need to start adjusting our expectations of interest rates, as they may not come down as quickly as they went up. And given this buyer headwind, price and condition will become even more critical. Inventory is generally less of an issue now, so buyers have more options to choose from. And they will be looking for the best deal.
If you haven’t yet participated in Galveston Restaurant Week (Month), you better get out there. The culinary treats come to an end on February 2nd. There are several restaurants to choose from with special lunch, brunch and/or dinner menus. It’s a great way to support local restaurants during a traditionally slow time of the year for them. Enjoy!