Is Miami Condo Market About To Surge With Rate Cuts Expected In September?

In this episode of the Miami Condo Mondays™ live podcast, we discuss the likelihood that interest rates could begin falling as soon as September 2025 following a speech by Fed Chairman Jerome Powell.Miami Condo Mondays™ is a live podcast hosted by Peter Zalewski of the Miami Condo Investing Club™ and veteran broker Jenny Huertas of CVRRealty.com providing an in-depth look at the latest residential real estate trends in South Florida.Recorded weekly, the podcast offers a one-hour discussion on various real estate topics, including pre-construction condos, market trends and investment strategies.The hosts share their expertise, with Zalewski focusing on macro perspectives and Huertas offering micro insights from her on-the-ground experience.Tune in every Monday at 4 PM (EST) on the social media accounts of Zalewski and Huertas for insights on the latest trends in the South Florida condo market.In this episode of the Miami Condo Mondays™ podcast, the hosts discuss the growing likelihood that interest rates could begin falling as soon as September 2025, according to a recent report.Zalewski and Huertas explore what lower interest rates could mean for the South Florida condo market, which is currently in a buyers market with more than 12 months of supply currently listed for resale.Equilibrium is considered to be six months of supply. More months of supply suggests a buyers market, and less months of supply a sellers market.Generally, housing activity strengthens when interest rates decline and weakens when rates riseExpectations for a rate cuts of between one and two percent in the next year are based on Wall Street reactions to an Aug. 22, 2025, speech by Federal Reserve Chair Jerome Powell at the annual Jackson Hole Economic Policy Symposium in Wyoming.Powell said in his Labor Markets In Transition: Demographics, Productivity And Macroeconomic Policy speech:“In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside - a challenging situation,” Powell said. “When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate. Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.“Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”After months of holding interest rates steady despite criticism that the policy was strangling economic growth especially in housing, Powell - who has faced pressure to cut rates from President Donald Trump or risk termination - signaled that a change could come as soon as next month.This suggests the Federal Reserve is shifting from a laser focus on crushing inflation to a more balanced approach.Translation: interest rate cuts are coming and could begin at the FOMC’s next two-day meeting starting Sept. 16, 2025.This does not mean the Federal Reserve has achieved its goal of reducing inflation to two percent or less. Rather, a larger concern - job losses - is emerging in the labor market.For full access to our comprehensive reports, statistical charts, virtual Monthly Meetings and exclusive MeetUp events, we invite you to join the Miami Condo Investing Club™.The Club's mission is to foster a community that shares realtime, actionable intelligence on the latest real estate trends, emerging opportunities and trusted service providers throughout South Florida.Whether you are a Do-It-Yourself (DIY) condo buyer or a seasoned real estate professional, the Club provides invaluable resources, including up-to-date statistics, expert analysis and access to tailored consulting services.An added benefit of the Club is that members receive discounts on all Miami Condo Correction Walking Tours™. Info: MiamiCondoClub.eventbrite.com