Waiting to see the impact of the latest Fed rate cut before buying a home? Experts predict no short-term relief for buyers — here's why

A rate cut could mean skyrocketing housing prices

Would-be homeowners are facing even more dire warnings from other experts, including Pulte Capital CEO Bill Pulte and “Shark Tank” star and investor Barbara Corcoran. Both Pulte and Corcoran spoke to Fox Business earlier this year and believe that if the Fed cuts rates, property costs will skyrocket.

"If the federal reserve comes in… and reduces rates… you could see those home prices go up, in my opinion, 5, 10, 20%. That would be just insane. You would start to have a buying frenzy again, much like during COVID," Pulte said.

"If rates go down just another percentage point ... prices are going to go through the roof," she said.

Luckily, buying a house isn’t the only way you can gain exposure in the real estate market these days — people are investing instead.

Residential and commercial options

With much lower upfront costs, new platforms are helping eager investors gain access to the housing market by removing financial barriers that kept them on the sidelines.

For instance, Cityfunds lets you invest from hot housing markets in major cities like Austin, Dallas, Miami, Tampa, Denver, Phoenix, and Nashville via owner-occupied residential properties.

They secure an interest in a home’s future value in exchange for cash. As homes’ values appreciate, so does the value of Cityfunds equity investment alongside the homeowner.

So, you can invest in portfolios of these owner-occupied properties for as little as $500 and gain access to a $20 trillion home equity market without the hassle of dealing with high home prices, an expensive mortgage, or the extra work of being a landlord.

And you aren’t limited to residential investments. Commercial real estate — which can often involves long-term leases with reliable tenants — is another example of a reliable income stream.

For the accredited investor with a little more liquid capital, First National Realty Partners (FNRP) allows you to access institutional-quality grocery-anchored commercial real estate investments — without the leg work of finding deals yourself.

FNRP has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.

Through FNRP’s secure online platform, you can engage with experts, explore available deals and easily make an allocation, all in one personalized portal.