theconnectionsnj.com HOME & DESIGN PAGE 36 JOHN P. LAWSON CONSTRUCTION, LLC Building & Framing Specialists Residential & Commercial Complete Home Improvement Fully Insured Phone: 908.526.2846 Cell: 908.625.8650 Custom Homes • Framing • Windows Additions • Doors • Add-A-Levels Basements • Decks • Roofing • Siding Raritan, New Jersey HIC #13VH02613900 ecent developments have exposed the extent to which our local housing climate is subject to the influence of federal government agencies. This fall, the Federal Trade Commission (FTC) filed a lawsuit against real estate industry giants Zillow and Redfin. The FTC’s mission is to protect the public from deceptive and unfair business practices. They work via advocacy, research, and education, but also, if necessary, by using the courts of law. Zillow and Redfin are known for their consumer websites, which borrow local real estate listing data and repackage it under their own brands. Their goal is to control and monetize the consumer’s access to property information, adding an unnecessary barrier to communication between property management companies and prospective tenants. The FTC’s legal complaint alleges that Zillow and Redfin violated consumer protection law when Zillow paid Redfin $100 million to effectively bow out and allow Zillow to control the rental market. “Paying off a competitor to stop competing against you is a violation of federal antitrust laws,” according to Daniel Guarnera, Director of the FTC’s Bureau of Competition. The lawsuit accuses Zillow and Redfin of depriving property managers and renters of the benefits of a competitive marketplace, and of manufacturing an unfair and unlawful advantage in a tight housing market. The outcome of this legal proceeding has the potential to affect landlords and tenants locally by releasing them from the online constraints of large national real estate companies whose interests are based on market share and profit maximization, rather than helping real people find homes. While we await further developments in that situation, an additional organization is exerting a strong influence on our housing market. The Federal Reserve supervises financial institutions and works to stabilize economic activity, including employment, inflation, and interest rates. To maintain a balanced economy, the board leverages interest rates against other market conditions. In September 2025, responding to inflation and a cooling labor market, the Fed decided to reduce interest rates. At the time of this writing, they have indicated they are likely to reduce rates again before the end of the year. Any time there is a change in interest rates, it affects the mortgage and real estate markets. Higher rates make home payments more expensive, limiting what borrowers can afford in a home purchase. A reduced interest rate can significantly improve a buyer’s purchasing power, which also benefits home sellers, since a surplus of financially capable buyers helps to keep home prices high and the overall real estate market strong. As the Fed strategically deploys its rate changes, we feel the trickle-down effect locally. The Somerset County suburban real estate market is showing signs of stability, with some minor fluctuations in response to the policies and activity of federal agencies. Looking ahead to 2026, I am optimistic about the strength of our local market. For expert real estate service, contact Johanna Wiseman of RE/MAX Preferred Professionals at 908-705-0652, or use QR code in the advertisement near the front of this magazine. REAL ESTATE CORNER How “The Feds” Are Influencing Local Real Estate By Johanna Wiseman, RE/MAX Preferred Professionals purchase. A re rate can signifi a buyer’s pur pow surplus of finan R
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