Copy By Marte

Professional Real Estate Copywriting

Real Estate Copyrighting
MENUMENU
  • Real Estate Prospecting Letters
    • Real Estate Prospecting Letters
      • Why Send Real Estate Prospecting Letters?
    • Custom Real Estate Prospecting Letters
    • Real Estate Prospecting FAQ
    • Prospecting: Why Send Multiple Letters?
    • Real estate investor prospecting letters
    • Prospecting Tips
      • Real Estate Postal Prospecting System
      • Why Drip Marketing?
    • Discount Codes for real estate prospecting letters
  • Agent Bios
    • Agent Bios
    • Real Estate Team Bios
    • bios for new real estate agents
    • real estate bio questionnaire
  • Marte's Blog
  • About Me
    • Contact Marte
    • Why Choose Copy by Marte?
    • My Bio
    • Testimonials
    • Fees
    • Samples
    • Web Copy Samples
    • Policies
  • Freebies for Real Estate Agents
  • Real Estate Copywriting FAQ
  • Real Estate Copywriting Advice
  • The value of first time buyers
  • Real Estate Blog Posts for Busy Agents
    • Real Estate Blog Posts for listing agents
  • Newsletter Opt-in
  • Real Estate Press Releases and Articles
  • Real Estate Books!
  • Your Real Estate Agent Website
  • Real Estate Property Descriptions
  • Real Estate Community Pages
You are here: Home / real estate agent advice / Upheaval in the housing market?

Upheaval in the housing market?

April 13, 2022 by Marte Cliff

Are we about to see an upheaval in the housing market? It would not be surprising.

Real estate experts who predicted a continuing rise in prices just a couple of months ago are now saying theychange creates upheaval in the housing market aren’t so sure about that. In fact, I heard someone on TV predicting a crash. (But of course, you can hear anything on TV – it’s just someone’s opinion.)

A variety of factors are at play that may cause home prices to level off or even drop. Rising interest rates and inflation may cause some buyers to postpone their plans to own a home, while others may have to adjust their sights downward.

A person who can afford a $1,000 per month principal and interest payment could afford a mortgage loan of $237,189 when the interest rate was 3%. Now that the rate has gone to 5%, they can afford a loan of $186,281.

The Fed says interest rates will go up “several more times” this year.

Should that cause you to panic? No, there will always be people buying homes. When I was first licensed in 1985, interest rates were bouncing from 9% to 11%. It took longer to find a buyer for each home, and those that were overpriced didn’t sell at all, but we did sell homes.

It may cause you to work a little harder, and it may cause a few of the less dedicated agents to drop out. Considering the comments I read about agents who don’t do their jobs well, you may agree that that’s not necessarily a bad thing.

Should you be worried about an upheaval in the housing market?

No, you should just be ready. If your buyers need to adjust their sights downward, you may need a few more closing each year to maintain your current income.

I know, not easy when demand is still so much higher than the supply. But that could change.

Homeowners who see 2022 as the peak of the market, and especially those who think prices will drop, may now decide to sell. Upheaval in the housing market could increase supply while it reduces demand, so that the market can come back into balance.

If you work with buyers, my guess is that you wouldn’t mind not having to write a dozen offers to get one acceptance. However, depending upon your price category, you may have fewer buyers.

According to Zero Hedge, housing affordability is now at its lowest level since 2008.

New construction will also play a role.

The scarcity of homes for sale has been partially responsible for the rise in prices. It’s simply the law of supply and demand at work.

For several years after the crash, new construction slowed. But now, despite high materials costs and a labor shortage, builders are working hard. Experts expect to see 1.65 million new homes coming on the market in 2022 and another 1.2 million in 2023.

Keep a close watch on trends in your local market.

  • Are more homes expiring off the market unsold?
  • Are you seeing price reductions?
  • Are your “sold” prices changing?

Be sure you can answer questions about the market when buyers and sellers seek your expertise.

Meanwhile, encourage your prospects to consider selling this year.

Only a fool (or a talking head on TV) would make an absolute prediction regarding the upheaval in the housing market. But it would be good for you if a few more people decided to list with you.

To help you get your prospects thinking, I wrote a new set of letters.  Why Homeowners Should Consider Selling in 2022 is a set of 6 letters that simply state the issues affecting the housing market, and what their effects might be. Of course they also invite homeowners to call and discuss the situation with you.

If the trend continues as expected, prices may well come down or simply level off and stop soaring. But even if homeowners can see that happening, it may take them a few weeks or even until the end of summer to make the decision to sell. So stay in contact. Send these 6 letters (or some that you write yourself), then follow up with periodic market reports plus your just listed/under contract/just sold messages.

Make sure that YOU are the one they think of when the time comes to sell.

Filed Under: real estate agent advice Tagged With: real estate best practices

About Marte Cliff

Marte Cliff is a professional real estate copywriter with a past - as a real estate agent and then owner/broker. She understands the real estate business, the challenges agents face, and the wants, needs, and fears that real estate clients face. She also understands the psychology of marketing.

When not writing, Marte enjoys reading, gardening, visiting with friends and family, and spending time with her canine companions. She enjoys life in a quiet mountain valley with wildlife as her nearest neighbors.

Copyright 2015 - Marte Cliff, Copywriter | 1794 Blue Lake Road, Priest River, ID 83856 | 208-448-1479

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in