Summer is quickly approaching, and with planned vacations and families focusing on summer break, you’re probably aware of a noticeable shift in the market. In fact, even more drastic than a “shift,” the market seems to have slowed. Sellers might still be caught up in overpricing their homes and buyers, now skeptical of interest rates and over-inflated home prices may have curbed looking for their next home. The number of transactions compared to last year is down 10% from and could potentially be down 15-20% by the end of the year.
This summertime slowdown shift is typical and is somewhat anticipated every year starting around mid-summer. But the bigger picture might mean nationwide readjustment in the housing market, and that larger-scale shift might have some REALTORS® worried about their chosen career and how they can continue to help clients in a changing market.
We know how difficult it can be to be a real estate agent, and after a long period of unprecedented growth, a readjustment in the market can cause worry. This is why we coach our agents and have ongoing conversations using market data about what to expect in the market for the remainder of the year and how to prepare and educate your buyers and sellers in the coming months. Especially during times like these, we show your clients how important it is to work with an experienced Realtor® who can guide them through the ins and outs of the ever-changing market and help them to make informed decisions, whether buying or selling.
There are opportunities to be had for buyers right now and informing your clients about new creative financing and great loan options in a difficult market is one way our team stands out from the rest. Set yourself apart in this market that is shifting and be part of a team that faces challenges together and has insightful conversations about how you can always be serving your clients with our available tools and resources.
To help, we want to share some of our tips with you.
- This shift is NORMAL. It’s been a crazy few years with extremely low-interest rates, and although interest rates are higher than this time last year, they are still LOW. It will take time for our clients to adjust, and coaching them on where interest rates are now compared to the ’80s, ‘90s, or even just five years ago will help put their minds at ease.
- Be patient. It was crazy that a home would barely hit the market and have five offers in a single day, much less an hour. Now the average home sitting active on the market in May was around 19 days. Although it takes longer for homes to sell, buyers are out there and are looking for their next home. Again, coaching your seller that homes are taking a bit longer will help you build your relationship with them and keep them from calling you when their home doesn’t sell in 24-hours.
- The work you do today will pay off tomorrow. Take the vacation and relax, but keep building relationships with your clients and anticipate their needs in the coming weeks and months. The relationships you build now could be the closed deals you have later this summer and into the fall.
The shift has happened, and you can either be worried or be confident as an agent. Knowledge builds confidence, and when you are confident and surround yourself with others who continue to help, support, and offer advice and education on the ever-changing market, then you, your clients, and your real estate business will thrive.
At the Mike Brown Group, we want our agents to excel as we continually provide them with the support and expert advice they need to be knowledgeable and quickly pivot, whether the real estate market is booming or when it is shifting. We are looking for agents who love being a REALTOR® and want to build relationships with their clients and their team, so their business can thrive. If that’s you, I would love to talk with you.
Until then, I hope you have a safe and wonderful summer.