Though the news is full of dire warnings about the housing market, real estate agents can feel secure moving forward as more buyers are expected to enter the market in the coming months. Even though the market may not bounce back to early 2018 levels, lowered interest rates are appealing to many buyers. Some markets are performing better than others, but the overall outlook is more favorable than it was earlier this year. Here’s what you need to know.
Due to the slowing market, interest rates have been dropped quite low, below 4%. According to realtor.com rates have been as low as 3.75%. This is no small amount in a buyer’s eyes, saving them thousands over the life of their mortgage. Many buyers, especially those who are already homeowners, see this as an advantageous time to buy a new, larger home.
However, those buyers who are looking to enter the market may find they have limited options, as supply continues to decline. This is compounded as more millennials reach home-buying age and start to look for entry-level homes. Supply of these homes is lower than supply for those who are looking to upgrade their housing situation. Millennials still face the financial challenges that have pushed back their average first-time home-buying age.
For real estate agents, this often means it will take longer to find each client their new home, and it will cost that client more. Investing in ways to save time on each client, without reducing your quality of service, will benefit you moving forward.
Some areas that were affected by the slow down are seeing a huge boost from lowered interest rates. For example, San Jose, San Francisco, and Seattle are all seeing increased sales and prices. Across the nation, the median home listing price reached an all-time high of $316,000. Your market may be heading for a busier season than you expect.
Still, some things have changed. Noticeably, few buyers are willing to enter bidding wars in the current climate. That being said, there should be many of these buyers.
“There’s still plenty of pent-up demand from years of underbuilding and more millennials coming of age,” says realtor.com Chief Economist Danielle Hale. “This year’s buyers seem a little more patient. They’re more willing to wait for a good property.”
For real estate agents, using strategies to save time wherever you can will help you take on fewer indecisive clients and keep your overall revenue up. Don’t just save time when looking for properties and bringing on new clients, try to save time with the transaction. Acuity National Real Estate Solutions can help.
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