Amazing island values

[DRH]

Originally Posted by John Mercier

I don't know.
If the FED lowers interest rates that should put at least some support under the prices.

And the last tax reevaluation for Meredith didn't show waterfront or island homes rising in value as much as other property designations.

The Fed only influences the overnight Fed Funds target rate, not long term (i.e. mortgage) rates. When the Fed begins lowering the short-term Fed Funds target rate (currently at 5.25% - 5.50%), it will likely take some time for long term rates to adjust downward. Historically mortgage rates have been influenced mostly by the 10-yr Treasury bond yield which is currently at 3.76%, significantly lower than the target Fed Funds rate. So it may take a while for mortgage rates to come down significantly. Not a prediction, just an observation of the historical relationship between mortgage rates and bond market rates.

[John Mercier]

It can change investment outcomes that induce the ''wealth effect''.

[ApS]

Originally Posted by Biggd

Never say never. We've had a long expansion, we are overdue for a recession.
Everything contracts during a recession. You just have to be in a financial position to jump in. I'm 70, been through quite a few!

While not an island property, here's a message...

The family scrounged-up $200K in 1994. Yesterday, I was told this lakefront "acre of dirt" could fetch $5M...!



OTOH, a friend's widow sold her three lakefront lots for much less, upon assurance that the buyer/contractor would refurbish the 1949-built family camp.

[Biggd]

Originally Posted by John Mercier

It can change investment outcomes that induce the ''wealth effect''.

As does, the market crashing.
Let's hope the Fed isn't too late!