When it comes to real estate, the hallmark of the last 24 months has been low supply and high demand. This led to the number of home sales—and buyer competition—reaching levels previously unseen. However, astute observers are noting a shift; it appears the housing market has finally hit, or is nearing, an inflection point.
Year over year, showings are down, while active listings are up.
Buyer demand has weakened somewhat in the wake of higher interest rates and economic fluctuations. So, what does this mean for your clients—both those looking to buy, and those looking to sell?
Buyers should see such a shift as a positive—the competition has cooled off, and they have more options to choose from, rather than simply settling for whatever is available. This increase in supply also moves the negotiation needle solidly in their direction. Things are far different than they were even a year ago, so those looking to make a purchase will need to rely on your expertise more than every before.
Sellers haven’t quite missed the boat yet, though. Even though there are more homes on the market, generally speaking inventory is still low. If buyers are able to be more discerning, your sellers have the opportunity to commit to mild upgrades to woo them in comparison with other listings. Current market value is still extremely high and the likelihood of achieving a quick sale is still solid. Current buyers are motivated, and extremely well qualified.
As a real estate professional, you’ll be expected to field a lot of questions, and provide your input when guiding your clients. Understanding how market ups-and-downs can still benefit both sides of the negotiating table is essential to success. Be sure to make the time to sit with your market centers’ mentors and more experienced team leads in order to remain prepared for anything!