It's no secret that the American housing market has been struggling in recent years, but what is causing this inventory dilemma? And how can real estate agents and realtors successfully navigate these tough waters? In this blog post, we'll take a closer look at the current state of America's housing market and offer some helpful tips for agents who are looking to find success in today's challenging market.
What's The Situation Right Now
The National Association of Realtors continues to report that there are not enough homes for sale, which has been going on since 2021. In December, the inventory dropped to 910,000 units, or 18% lower than November 2021 and 14.2% lower than 2020 data.
The real estate market is very competitive right now given the high demand but low supply. Due to the increase in demand and low supply of built houses; prices just keep hiking up. According to the National Home Price NSA Index, prices have increased by 19% from last year. But that doesn't mean that the demand will stop.
Homebuyers are willing to pay extra money to get the property they want, especially if it is in a prime location. As a result, mortgage rates are also increasing. But the amount of people applying for one is also stacking up. This isn't good news for those looking to buy.
On the other hand, this is good news for those looking to sell their homes. Sometimes it seems that sellers just have to name their price, and someone will surely be quick to close that sale.
Helpful Tips for Agents
You're constantly competing against your colleagues for a dwindling number of listings. It's frustrating, but don't worry; you can still be successful in this market! Here are three tips to help you out.
- Do your homework.
Take a look at the average selling prices of homes in your area and around town. Knowing that information will help you price your listings at competitive prices that will help you attract buyers. The more appealing the price, the more likely potential buyers will be to check it out in person.
- Know what's selling–and what isn't.
When homes are put on the market for sale in a seller's market, they should sell reasonably quickly. However, if homes aren't selling, there's a reason for it. Is the home priced too high? Does it need repairs or updating? Has the location become undesirable to potential buyers?
- Sharpen your negotiation skills.
When homes do come on the market and sell quickly, that typically means multiple offers were made by prospective buyers. During this process, agents must learn how to negotiate promptly and efficiently. This will help your clients avoid disappointment during the home-buying process.
Final Thoughts
Overall, real estate agents must remain optimistic throughout the inventory dilemma. While there are many unknowns when it comes to the housing market, take comfort in knowing that cash-strapped homeowners are looking to be smart with their money. That means that your client's homes will sell quickly, and you'll get them top dollar for their properties.
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