This blog breaks down what’s happening, what might be coming next, and how it could affect your home and your plans.
What’s Going on with the Economy?
Let’s start with the big picture. The experts are saying there’s a very high chance (almost 100%)1 that interest rates will start coming down soon—possibly as early as this fall. That’s good news for buyers and sellers alike.
Here’s why it matters:
- Lower rates mean more buyers can afford homes, which could increase demand.
- Homeowners with equity may find it easier to refinance, upgrade, or sell.
- Investors may start looking again, especially in areas with older homes and larger lots.
At the same time, inflation is cooling off, people are feeling more confident about their finances, and Southern Frederick County continues to grow2—especially with major job hubs like DC and Baltimore nearby.
Who’s Holding the Most Equity?
One of the biggest trends shaping the market is age. National data shows that older homeowners, especially those over 55, hold most of the home equity. Many of them own their homes outright or have very low mortgages.
Here’s how that plays out locally:
What to Expect in the Next Year
Here’s a simple forecast for what might happen in our area:
- More homes for sale from longtime owners who are ready to downsize or relocate.
- Renovations and upgrades as homeowners use their equity to improve or age in place.
- First-time buyers entering the market as rates drop and new construction opens up.
- Investors returning, especially in areas with older homes and larger lots.
- More conversations about legacy planning, gifting homes to family, or making smart moves while values are strong.
What Should You Do?
You don’t have to make a big decision right away—but if you’re thinking about your next chapter, here are six smart ways to start:
- Get a free home value check: Understand what your property is worth today based on local trends and recent sales.
- Explore Maryland’s senior tax credits: Learn how programs like the Homestead Tax Credit or Senior Property Tax Credit could reduce your annual costs.
- Consider aging-in-place upgrades: Use your equity to make your home more comfortable and accessible for the years ahead.
- Talk about legacy planning: Whether you’re thinking about gifting your home to family or preparing for future transitions, it helps to have a plan.
- Look into downsizing options: If your current home feels too large or high-maintenance, there may be smaller, more manageable homes nearby that still fit your lifestyle.
- Schedule a no-pressure consultation: I’m happy to walk through your options, answer questions, and help you explore what’s possible—on your timeline, with no obligation. I’m here to help you explore those questions—no pressure, just honest guidance.
Want to talk through your options?
I'm optimistic about the near future. This is a great time to plan your next move. I offer free consultations for homeowners who want to understand their equity or explore their options.
Thank you for reading this article. I would love to meet you and talk about real estate, and perhaps your future plans. If you know anyone else considering a move, I’d be grateful for your referral. I promise to take great care of them.
1 According to CME Group’s FedWatch Tool, futures markets are currently pricing in a near-99% chance of a rate cut at the next Federal Reserve meeting.” You can explore it directly on CME Group’s FedWatch page.
2 Frederick County is experiencing strong economic and commercial growth, particularly in the southern corridor, with GDP rising to $15.4 billion and significant capital investment and job creation in FY 2025. Major redevelopment plans, including the South Frederick Corridors Plan and Livable Frederick Master Plan, aim to transform this area into a vibrant hub for housing, business, and innovation. Investments in infrastructure, mixed-use development, and workforce housing are central to this vision.
Please note that this post was crafted with support from Microsoft Copilot.
