Our buyers and sellers want to be calmed down
Today’s housing market is like a haunted house. It seems scary, but when you turn on the lights and take away the special effects, it’s really not so bad. Yes, the summer is going a bit slower than we’re normally used to, but we’re in an industry that ebbs and flows.
However, our buyers and sellers may not understand that. In fact, 45 percent of home sellers believed the housing market was headed for a crash in 2022, and Google searches for the term “housing bubble” are on the rise. Those two disclosures are in this recent piece from the National Association of Realtors that we certainly found helpful.
This is not to dismiss any concerns out there about the market and inflation. However, mortgage rates are plateauing, though it truly varies week to week. Plus, more listings continue to come on the market, So, how do real estate professionals like us talk about what’s going on in a positive way? Let’s go back to that article.
First and foremost, it’s important not to dismiss fears. Just like with the rest of the homebuying or selling process, your clients are looking to you to be the expert. Concerns around the changes in the market should be expected, and you should be ready to address them. Remember 2008 wasn’t that long ago, and many millennials likely watched their parents struggle to stay afloat, scaring them off their own homeownership path. Remember, they don’t keep track of the real estate news as much as we do.
Remind them that real estate can be a hedge against inflation. Locking in a fixed-rate mortgage now will protect homeowners against future increases in housing prices – and interest rates. There is no protection for renters against climbing rental prices, and refinancing is always an option if rates do go back down. Plus, renting doesn’t offer the ability to build equity.
Explain the difference between a correction and a crash. The housing market is showing signs of slowing, but that’s not all bad. A slowdown could bring the market closer to equilibrium, leveling the playing field for buyers and sellers. There is no expectation that the fallout from this housing correction would be comparable to the 2008 crash. We live in a different world now. Lending rules are more stringent and the factors that led to where we are now are not the same. 2008 was less than 15 years ago, but it’s still like comparing apples and oranges.
When you’re ready to work with a title and closing partner who takes your buyers and sellers journey as seriously as you do, reach out to our team. We take pride in what we do and are here to support you every step of the way.