We’re seeing a noticeable pickup in real estate conversations. Homes are changing hands, long-listed properties are finally closing, and investment properties are coming to market after a long period of “wait and see.”
For many clients, this has less to do with finding the perfect interest rate and more to do with something simpler. When rates feel more stable and knowable, decisions that have been delayed become easier to make.
But once a transaction is on the table, the bigger question becomes: How does this sale (and the next purchase) fit into the full plan, including taxes, liquidity, and long-term goals?
Rates: The Question We Hear Most and Our Perspective
A potential Fed leadership change has naturally brought renewed attention to rates. President Trump has selected Kevin Warsh as the next Chair of the Federal Reserve, though Senate confirmation is still required. The question we are hearing most often is: Will a new Fed Chair mean lower interest rates, and how quickly could that show up in mortgage and borrowing costs?
Warsh is generally viewed as someone who would look for ways to bring borrowing costs down, but not only by changing the Fed’s short-term rate. If he is confirmed, markets may expect him to focus more on reducing the Fed’s footprint in financial markets, including shrinking the portfolio of bonds the Fed holds. The thinking is that a smaller, less active Fed in bond markets can change how longer-term interest rates are set, which is what matters most for mortgages and many business loans. For Warsh, the path to lower rates may matter as much as the decision to lower them.
Even so, it is important not to over-attribute rate outcomes to any one person.
First, interest-rate policy is set by committee, and decisions remain highly dependent on inflation, employment, and broader financial conditions, not just leadership preferences. Second, the Fed controls the overnight rate, but borrowing costs that matter in real estate, including mortgage rates and many commercial lending terms, are driven by longer-term Treasury yields, credit spreads, and market expectations about growth and inflation.
That is why changes in Fed leadership do not automatically translate into immediate changes in mortgage rates. Markets often price expectations well in advance, and rates can move for reasons that have little to do with the most recent Fed meeting. For our clients, we focus on building plans that remain resilient across a range of outcomes rather than trying to time a single policy shift.
Two Real-World Situations We Are Seeing More Often
- We’re making a move, but we want to be intentional about the ripple effects.
A household sells a primary residence and buys a new home (downsizing, relocating, or moving closer to family). The planning work often centers on sequencing: coordinating cash flow, deciding how much liquidity to keep post-close, and making sure the move does not unintentionally disrupt other priorities like insurance coverage or estate documents. With rates still moving, we are also frequently modeling whether paying cash, financing, or using a blend best supports the bigger picture. - We’re ready to exit an investment property, but we don’t want to replace one landlord role with another.
We are seeing more clients sell investment real estate after a long hold. In many cases, the goal is not simply to maximize price. It is to simplify life without creating a forced decision. That is where the reinvestment conversation becomes central.
If You Are Selling Investment Property: 1031 Exchanges and DSTs
For those selling investment real estate, the tax impact can be substantial, especially once you account for capital gains and depreciation recapture. A 1031 exchange can allow you to defer taxes by reinvesting proceeds into other like-kind investment real estate, but the deadlines are strict, and the replacement-property decision can become the bottleneck. This is where we have seen momentum build in a specific direction.
Delaware Statutory Trusts (DSTs): A Common Solution When “I Don’t Want Another Property” Is the Reality
DSTs can be useful inside a 1031 exchange when an investor wants to stay in real estate (or continue to defer taxation) but does not want another hands-on asset, or does not want to rush into a suboptimal purchase just to meet the timeline. At the highest level, a DST allows investors to own a fractional interest in a portfolio of institutional real estate that may still qualify for 1031 treatment.
Investors typically ask about DSTs when they are looking for diversification across property types and geographies, passive ownership with professional management, a practical way to meet 1031 timing constraints, or estate planning flexibility through fractional interests.
When discussing DSTs with clients, the right question is rarely “Is a DST good?” It is “Is this DST a good fit for what we are trying to accomplish?”
Bringing It All Together
Whether you are selling a home or an investment property, the opportunity is usually not in timing the market. It is in sequencing decisions before the transaction is final.
For primary residences, that often means clarifying what the move is designed to accomplish and then coordinating the details around it. Downsizing, relocating, or buying a second home can affect liquidity, leverage, and how the property fits into your estate plan. Decisions like paying cash versus financing, and how the home is titled, are easiest to make thoughtfully before commitments are irreversible.
For investment real estate, the planning tends to center on taxes and reinvestment. A 1031 exchange can preserve flexibility, but the timelines can create pressure. For some investors, a DST is worth evaluating when the goal is to remain allocated to real estate while avoiding another hands-on property and still pursuing tax deferral.
The right answer is rarely one-size-fits-all. It is a decision that should be made in context, with your full balance sheet and long-term goals in view.