What a Slowing Market Means for Realtors
Is the housing market cooling down? And if it is, how should realtors respond?
Realtors across the country have been on a roller-coaster of endless changes and huge fluctuation in the market since the beginning of the COVID-19 pandemic. From learning to assist clients virtually to adapting to new guidance around physical showings and cleanliness procedures, the small details and the overall market landscape have both required quick thinking and creative problem-solving from realtors.
Now, comprehensive housing market analysis suggests that we may be experiencing a housing market cool down, at long last. In some areas, realtors are even able to answer the question, “is it a sellers’ or buyers’ market?” with a more nuanced answer than a quick and definitive, “sellers’.”
By the Numbers
Many realtors turn to statistics in order to understand their local market and better strategize to help their clients successfully purchase homes, and to sell homes for the most profit possible. Overall in the US, we do see housing inventory on the rise; between June and July, it rose by 7.3%.
However, homes still aren’t sitting available for what is considered a long time for a house to be on the market. With 2.6 months of standing inventory according to NAR instead of the balanced standard of six months, there’s still a shortage of homes on the market compared to the volume of hopeful buyers. This imbalance doesn't quite fit the definition for what is a buyers’ market in real estate.
Some areas aren’t experiencing a cooldown at all. Many markets, like North Carolina’s Research Triangle, are seeing more growth than ever as remote work trends and forthcoming Apple offices pull young professionals to cities like Raleigh and Durham. In places like this, realtors are still faced with the task of guiding clients through a highly competitive real estate market.
What Realtors Can Do
First, realtors must dive into location-specific analysis such as Redfin housing market predictions, Zillow neighborhood reports, and local year-over-year comparisons in order to determine the specifics of their current market. Nationwide statistics are helpful for establishing a wider lens and a baseline, but no two areas will require the same exact strategy.
In areas where the housing market truly is cooling down, be up-front with clients looking to sell homes. Sellers have likely been watching the market for the past year and hearing stories about incredible profits. While the market is still strong, going into the selling process with a strong listing strategy and appropriate pricing can make a world of difference.
In guiding buyers through such constantly-fluctuating circumstances — for better or worse, — return frequently to the basics of their requirements and needs. Support them in sticking to their budget as always, and strategize with them to help their offers gain an edge through smart timing, special clauses in the buyer’s agreement, and creative thinking.
While predictions indicate a steady decrease in home prices for the rest of 2021, not every city will see pressure ease for buyers. Demand in “Zoom cities” such as Charlotte, NC shows no signs of slowing. Realtors with clients in areas like this can explore a wider range of options for buyers.
While landing an existing home may feel less possible each day, the process of building a custom home has never been easier. Realtors can partner with Atmos to help clients create the home they’ve always dreamed of, with simplified processes and support at every step.
