The Summer Market is Heating Up. Here’s What Buyers & Sellers Need to Know
There’s no sugarcoating it. This is a crazy time to be a real estate agent.
The imbalance of supply and demand is becoming equally frustrating for buyers and sellers as home values appreciate and bidding wars become a necessary evil to the homebuying process.
The good news is: the summer market is heating up, and seller confidence is rising as quickly as the temperatures.
Here are the biggest points you can cover with your buyers and sellers to keep their hopes up and their heads cool.
Buyer fatigue is very real…but there’s hope on the horizon
The combination of low inventory and high demand is creating an environment where buyers are getting into bidding wars with nearly every home that hits the market. According to NAR, the average amount of offers a listed home receives is currently around 4.8. If you have clients who have been at this for a couple of months or longer, they’re probably feeling a little frustrated and discouraged right now.
What to tell your clients
Real estate agents wear a lot of hats, and this is the time to throw on your empathy cap. Be equal parts sympathetic and positive while setting realistic expectations. This isn’t the time to say “we’ll get the next one.” Instead, reassure them with data and the latest housing market insights.
Experts are projecting a rise in inventory in the 2nd half of the year, and builder confidence in the market remains strong from the lack of resale inventory. The best thing you can do to cool down any frustrations or buyer fatigue is to be honest and keep them informed.
The best way to communicate it
Whether it’s text, email or social media, make sure you’re constantly educating your clients with data and insights that help them make confident and powerful decisions.
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Experts say sell now, not later
On the flip side of buyer fatigue, we have seller apprehension. While low mortgage rates continue to fuel high buyer demand, there isn’t enough inventory to go around. If there’s ever been a seller’s market, it’s right now.
What this means for clients
With homeowners in the driver’s seat, they have everything to gain and nothing to lose. With offers per listed home at almost 5 and the average amount of days on the market currently at 18, sellers can expect a swift and painless process.
“For most sellers, listing sooner rather than later could really pay off with less competition from other sellers and potentially a higher sales price,” said Danielle Hale, chief economist at realtor.com.
With the possibility of higher mortgage rates and a surge in new construction coming to market later this year, putting off selling means risking missing out on more interest and a higher sale price for their house.
The best way to communicate it
Now more than ever, creating a weekly market update video that you share with your sphere is a great way to educate them on what’s happening with real estate in your area. This can be a simple video that covers the big topics like mortgage rates, what homes are selling for, and how long they’re staying on the market.
Not sure how to get started? We made a guide on how to make amazing real estate videos in 5 easy steps.
There’s a really big benefit to price appreciation
There’s been a media storm of speculation about where skyrocketing home price appreciation has the real estate market headed. Naturally, both buyers and sellers are wary of making a move in such a hot market. But, as home values continue to rise, so does one of the most important pieces of the homeownership puzzle – equity.
What this means for your clients
If you have clients who are hesitant to buy at the “top of the market,” let them know this fun fact: it’s not the top. While experts are predicting a natural slowdown in price appreciation as inventory rises, home values are projected to continue to rise over the next 5 years. No bubble. No crash.
The best way to communicate it
It’s always best to show rather than tell your clients what’s happening in the market. Sharing graphs like the one above will help buyers and sellers better understand complicated data and insights as well as clear up any confusion they may have.
The best way to get the latest insights in front of the most eyes? Social media. Learn the easiest tips and tricks on How to Use Instagram for Real Estate so you keep your followers informed while building a bigger following at the same time.
Bottom Line
While the real estate market might feel crazy, one of your biggest jobs right now is to make sure your buyers & sellers have all the right information.
Share articles, post insights on social media and keep graphs or charts handy on your phone. That way, you’re ready when someone asks “Is now a good time to sell” at the neighborhood barbecue.
At the end of the day, making sure you’re staying on top of the most current housing insights is the best way to build up confidence and clear up confusion in today’s market.
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