Buffini & Company Resources

Rising Above the Noise: Three Positive Things to Focus on in the Current Real Estate Market

Originally posted on RISMedia.com

Over the past year, those who have followed the news about the real estate market in the general media could not be faulted if they were confused and/or deeply concerned. Things have changed from where the market was a year ago. But thankfully, the news is not all bad. That’s why it’s so important to consider those reports in the context of where the market is right now.

  1. Inventory and Sales Varies Depending on Specific Market    

In many markets, home sales are down but in others they are steady or even slightly up year-over-year. There are several things factoring into this. Certainly, rising mortgage rates have caused some potential buyers to drop out of the market. And those who previously locked into historically low mortgage rates are hesitant to sell their homes and take on a much higher mortgage rate.

However, in many parts of the country, home sales are actually up. Not only that, but they are also selling at full price or more after going through a bidding war.

But one critical reason home sales are down in many parts of the country is that there simply are not enough homes for sale. The actual inventory of homes has increased by over 67% year-over-year — but the number of homes needed is still significantly down.

For many, the quest to buy a home is still a frustrating experience, especially for those who are considered middle-income buyers (households earning up to $75,000), according to the National Association of REALTORS®.

Limited inventory also affects those who make over $150,000 a year, according to the Wall Street Journal. As a result, these would-be buyers — an estimated 3 million — are renting instead of owning a home. It stands to reason that if there were more homes available for sale, many of those high earners would purchase a home.

  1. A Return to More Realistic Mortgage Rates

There is no doubt that mortgage rates are higher than they were a year ago. But again, perspective is everything. When reviewing data from Freddie Mac (the government-entity that tracks mortgage rates) it is noted that rates throughout much of 1980s were extremely high. Rates ranged from 9% to 14%, with the highest rate ever recorded, 18.4%, in 1981. Many experts believe current rates will start trending down slowly by the end of 2023, to approximately 5.5% by the end of 2023.

  1. Astounding Amounts of Equity

For real estate agents, the challenge will be to alleviate any FOMO (fear of missing out) that many of their potential sellers may have about not selling sooner. But a silver lining for these clients is the equity they have earned in their homes. Indeed, over 68% of Americans have paid off their mortgages or have at least 50% equity in their homes. Homeownership continues to be a wise investment, even in a fluctuating market.

A Trusted Source of Information for You and Your Clients

It’s easy to go down the rabbit hole when it comes to trying to find valid, credible information. Brian Buffini, the legendary founder and chairman of Buffini & Company, North America’s top real estate coaching knows this. That’s why twice a year he hosts an online broadcast, based on well-researched data and his 30-plus stellar career, where he shares his insights and perspectives on the market. The online broadcast, Brian Buffini’s Bold Predictions 2023: Mid-Year Update,” will air Monday, July 10 at 10 a.m. PT/1 p.m. ET.

Buffini will also be joined by David Stevens, the former president and CEO of the Mortgage Bankers Association who currently serves as CEO of Mountain Lake Consulting, Inc., a financial services consulting firm focused on real estate finance.

Those listening to the broadcast will also receive access to Brian Buffini’s 2nd Biannual 2023 Real Estate Report. Sign up to claim your digital seat for this free broadcast at buffiniandcompany.com/bp.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

August 29, 2023

Staying Supported Through Leadership Coaching

Originally posted on RISMedia.com Buffini & Company’s leadership coaching systems pave the way to continued success […]

July 24, 2023

Elevate Your Real Estate Team Leadership: Uncover the Four Vital Keys

Originally posted on RISMedia.com As the real estate market continues to change and becomes more competitive, […]

July 11, 2023

Three Tips for Closing More Real Estate Sales in a Shifting Market

Originally posted on RISMedia.com Over the past few years, closing a real estate deal was easy […]

June 29, 2023

Three Reasons You Should Use a Proven Real Estate Marketing System to Accelerate Your Business

Originally posted on RISMedia.com In today’s real estate market, top agents know that prioritizing client relationships […]

June 7, 2023

Four Steps New Real Estate Agents Can Take Right Now to Succeed

Originally posted on RISMedia.com I keep hearing agents around me saying “What is happening? This market […]

May 23, 2023

5 Strategies to Increase Listings in a Tight Market

Lead generation is the most important part of a real estate agent’s job. Although home inventory […]