The real estate market has been booming for the past couple of years, which means that seasoned realtors have one thing occupying their brains—the coming change. A changing real estate market isn’t always a bad thing, so there is no sense in losing sleep over the coming fluctuations. However, now is the time to prepare yourself and your business for the changes inevitably on the way. Here is a look at the market that could be ahead based on the past few real estate market cycles.
Today: A Robust Sellers’ Market
If your market is like most others in the United States currently, it is a robust sellers’ market. Prices are on the rise, sellers are getting multiple offers in short periods of time and new construction is booming again. Many real estate companies are rapidly expanding in response to increased demands and rising prices. Unfortunately, in such a busy environment, many realtors are also struggling to keep up with clients and leads.
Tomorrow: Cooling Down
Some markets are already in the cooling down phase. While the sun hasn’t set yet, the market is starting to normalize. Buyers feel like they have more than one option. If they aren’t a big fan of a home or it needs plenty of TLC, buyers feel like they can find better elsewhere since the urgency has cooled. Instead of houses sitting on the market for days, they will now sit for months. Offers on listings will also cool from multiple excellent offers to a few offers. Inspection issues that were non-issues a year ago are now a reason for negotiation. Some realtors see this phase of the changing real estate market as a reality check.
The Next Phase: Shifting Power
Next, the shifting inventory and demand will lead to higher housing inventories, sellers lowering listing prices to stay competitive and buyers who feel comfortable looking for exactly what they want instead of a home that they can make work. Appraisal and inspection issues will be on the negotiating table, and buyers will be ushered into the driver’s seat for negotiation.
Even Again: The Market Balancing
Finally, the changing real estate market will even out again. Buyers and sellers will both have say in sales and negotiating. At that point, the cycle will probably begin again, and sellers will regain power. All real estate agents should be prepared for the changes ahead, as the market cycle starts again.
Learn More about Title Insurance with Homeland Title & Escrow
Homeland Title & Escrow offers a broad range of title services, including complimentary consultations for first-time homebuyers. To learn more about our services, give us a call at (410) 544-6700.