Segment 1 – Time to Buy a Home Before the Rates Go up
We air the Real Estate Voice show every Saturday, if you cannot listen to the whole show, it is available on Barb's site: BarbHasTheBuyers.com, or search Barb & most podcasts like IHeart Radio
Every week the Real Estate Voice covers great information about people's primary assets – their homes. What will we be covering today?
• Time to Buy Before Interest Rates Go Up Again!
• Top 10 Trends That Are Dating Your Home
• Top 6 Reasons Why Pending Sales Fall Through
• To Five Seller Mistakes That Can Cause a Home NOT to Sell & Hot New Listings
Barb, it seems like just weeks ago we were talking about lots of bidding wars on homes and buyers struggling to get their offers accepted. Now along with interest rates rising, it appears the market is changing quickly does that
Mean the prices will correct and what should buyers do now?
Tier #1 Real Estate Perfect Storm - From Pandemic to Recession
1. Interest Rates Rising
2. Mortgage Applications Plummeting
3. Some Buyers are priced out of the market
4. Seeing More Buyer's Remorses
5. Home prices are starting to FLATTEN
1. INVENTORY IS SUDDENLY EXPLODING AFTER A 2.5 YEAR Sellers Market/Low Inventory
2. SUPPLY DEMAND ISSUE GOING THE OTHER WAY!
3. ACTIVE LISTINGS UP 100.9% FROM 1 YEAR AGO!!
PENDING SALES DROPPED 19.2% IN 2 MONTHS!!
# OF SALES DOWN BY 9.6% IN 2 MONTHS!
• This is not a SHIFT – IT’S A HUGE AND SUDDEN REVERSAL!!
• AVERAGE SALES PRIC3 DROPPED 2 MONTHS IN A ROW!
Buyers the Cost of Waiting Could Make a Huge Difference:
iBuyers Still Active in this Market
• Wall Street Factor into Real Estate
a. Zillow, Open Door, Redfin (taking inventory off the market)
b. Wall Street making it more challenging to reach our customers
• Almost everyone I meet has gotten an offer from Offer Pad or Open Door
Youngers Don’t Think They Need an Agent!
1. Industry legislation setting up the demise of Buyers Agent:
a. Illinois, Missouri & Kansas Suit
2. 6.7 million Americans voluntarily left jobs
3. 75000 got a RE license, then ½ quit
a. Scooping up on mouth-wateringly fat commissions.
4. Future could mean Buyers have to pay out of pocket for Representation…thus they won't
5. They DON’T stay in Europe and Australia!
Tier #3 The New Customer Avatar
1. Prospects No longer Answer the Phones
2. Buyers increasingly see less need for a Buyer’s Agent
3. Homestyle demand is changing
The Massive Millennial Generation!
4. Millennials = 43% of Home Buyers, Age 26-41
a. They use technology to streamline the process
5. More and More customers are asking:
a. Why should I work with an agent when I can get X from Wall Street, Zillow, Open Door
Wall Street
We Quickly Pivot from Two Years of LOW SUPPLY/HIGH DEMAND – Less Demand Market overnight!
• Fewer showings
• Fewer Bidding Wars
Suddenly FROM LESS THAN 1 MONTH OF SUPPLY ALL THE WAY UP TO $800k TO ONLY a Low Supply of homes BELOW $500k!
• This Week in Pikes Peak Region:
• PPAR SHOWED 21% Dropped Price! (Rising)
• 23% of Home Sellers Got Contracts Last Week
• 23% Sold (473)
If you are thinking of sellers, it's best to hire a team that can guide you through a market shift with success. Just like my Northwest clients, they listened to our guidance and received multiple offers and their home is pending $50K above the asking price!
We are talking about the shift in the real estate market and the sudden increase in available homes. What are some things people thinking of making a move should plan for and expect?
