Feb 7, 2024
by Doreen Spagnuolo, LIBOR CEO
Navigating a Challenging Real Estate Market by Prioritizing Trust and Expertise
I would like to discuss the current state of the real estate market, highlighting the importance of being the trusted resource for your clients in these challenging times.
In today's real estate landscape, we are confronted by two major factors that have significantly impacted the market: the presence of higher interest rates and the persistent issue of low inventory. Rising interest rates over the past year have deterred homeowners who previously secured low mortgage rates from selling. While the Federal Reserve has communicated that immediate interest rate increases are unlikely, there is potential for a rate cut in late 2024, aimed at managing inflation. Economists anticipate that interest rates will stabilize in the range of 6% to 7% in 2024.
One positive outcome of lower mortgage rates is the stimulation of housing demand, which in turn is expected to boost inventory levels. Many homeowners who had postponed selling due to life circumstances and their low mortgage rates may now be willing to relinquish their 3%-4% mortgage rates, thus contributing to increased inventory and home sales this year.
In this ever-evolving real estate environment, the key to success lies in becoming the trusted resource for your clients. REALTORS® must prioritize establishing strong, transparent relationships and offering unwavering guidance throughout their clients' real estate journey. Transparency in interactions is of paramount importance. Communicate the value you bring and demonstrate the dedication, effort, and expertise you invest in your client’s needs.
As real estate professionals, it is imperative to remain well-informed, stay updated on the legal and regulatory aspects governing our field, and maintain an in-depth understanding of the real estate market. Through these efforts, you will effectively position yourselves as the foremost experts for your clients.
LIBOR supports our members by providing crucial information and resources to assist you in guiding your clients through every market condition. By being the trusted resource consumers need, you (and your business) can continue to excel and thrive.