Understanding the market is crucial for agents to serve their clients effectively. From housing values to mortgage rates, all factors matter when it comes to finding the right home for a client’s budget and needs. Pinpoint pricing is critical for a client who wants to buy or sell property. Discover ten facts every real estate agent should know about the current housing market.
Housing Prices Are Increasing
Over the past few years, housing prices have steadily increased each year. Sellers expect top dollar for their homes while buyers face the challenge of covering rising costs to own a house. As a result, buyers might become more negotiable about features and locations to be able to purchase properties. Agents must keep a finger on the pulse of housing prices to best advise clients.
Mortgage Rates Are Rising
Now buyers are facing a double challenge, with rising mortgage rates and increased housing costs across the nation. Savvy agents connect with well-informed bankers and mortgage companies to provide the latest information to their clients. Helping people find a mortgage and get pre-qualified is the first step to making a successful sale.
Make Room for Millennial Buyers
As the Gen Xers and boomers get older, millennial homebuyers have taken over the market. Most buyers are millennials, and agents need to understand the mindset of this growing target audience. Millennial buyers are concerned about energy-saving and green features in a home. They search for homes online, want a carefree lifestyle, and focus on a quality home in a convenient location rather than a large one that is further from shopping and amenities.
Think About Supply and Demand
There continues to be a limited supply of houses with desirable features. As a result, the focus for agents is still based on supply and demand. In the current housing market, buyers might be willing to compromise on a fireplace or location near highways, to find a house that fits into their other criteria. Agents who help clients think about other possibilities are the most profitable in these market conditions.
Homeownership Is On The Rise
Though home prices and mortgage rates continue to increase, homeownership is on the rise. More people are owning homes rather than renting them. People continue to want the American dream of owning a house. And, consumers are discovering it often costs less per month to pay a mortgage than it does to cover rent. Plus, rental costs increase each year, while mortgage fees are more predictable.
Rentals Are Expensive
After the housing crash In 2008, the cost of rentals increased as more people needed temporary housing. The price of rentals continues to be expensive, driving people to save the money to purchase a house rather than rent one. While agents can still make money from listing apartments, the ultimate goal is to help as many people as possible qualify to buy a home.
Fewer Homes Are Being Built
New construction is slowing down due to the increasing cost of land, labor shortages, and cumbersome local regulations. As a result, consumers are looking to older homes that are newly renovated with cutting-edge appliances and fixtures. Encourage sellers to invest in updates to make their homes more desirable. Encourage buyers who prefer new construction to view houses that are totally renovated.
Large Homes Are Less Popular
There was a time when bigger was always better when it came to housing. Now buyers are cautious about purchasing more house than they need. Consumers consider expenses such as utilities and maintenance associated with owning a big home. Agents can appeal to buyers by showing smaller homes that are move-in ready and have modern amenities, such as energy-saving lights and appliances.
People Search for Homes Online
The majority of potential homebuyers go online to find available properties. While some still check local ads and drive around looking for “For Sale” signs, most people hit the internet to search for houses. Remember to keep search engine optimization (SEO) principles in mind when writing listing descriptions and tagging photos of the property. Buyers should be able to easily find an agent’s listings, including during mobile searches. Add localized keywords to attract the right target audience. Better Homes and Gardens® Real Estate agents use social media to reach out to more buyers and other key players.
Bring It To The Table
Regardless of the current housing market, each side must bring it to the table. Pre-qualified buyers and sellers concessions are still terms that move deals forward. Top agents discuss the need to negotiate or sweeten the deal to get the right conditions. Agents who make everyone happy with minimal hassles are sure to get referrals – and repeat business – in the future. Use these ten facts about the current housing market to advise clients who want to buy and sell property. Well-informed agents help clients make educated choices about one of the most significant investments of a lifetime. And, happy clients are sure to spread the word.
