According to my friends over at 1000 Watt, current market conditions are, in a word, interesting. Great for sellers, hard for buyers, confusing for agents, and difficult for the supervising brokers. Check out the trends in your area on my Altos Research link.
The era of dirt-cheap money ended abruptly, causing many buyers and sellers to call a time-out. Others are proceeding with expectations of a prior market condition, with, as one agent put it, “sellers thinking it’s last year, and buyers thinking it’s next year”.
In recent research, “change of lifestyle” was the #1 reason respondents cited for considering selling. This suggests that while a change in jobs, death, and divorce will always strongly predict transactions, less definite, more aspirational considerations are always present and active. Information about price declines accelerating next year make 53% of respondents more likely to sell now.
84% of respondents who have a mortgage on their home are either “very concerned” or “somewhat concerned” that high mortgage rates will impede their ability to sell. However, when presented with context that explained that refinancing to a lower rate in the future may be possible, 50% said this information made them more inclined to sell. 53% said that information about price declines accelerating next year made respondents more inclined to sell now.
91% of respondents report being “very clear” or having “a pretty good idea” of their home’s value
91% of respondents report being “very clear” or having “a pretty good idea” of their home’s value and indicate that an agent’s opinion, Zillow, and recent home sales contribute to that understanding. Notably, respondents who had yet to speak with a real estate agent relied much more on Zillow and recent sales to form their opinion of their home’s value. This suggests that if real estate agents leave an informational vacuum, others will fill it.
The results from 1000 Watts research show clearly that people who are thinking of selling are hesitant and concerned about the recent and dramatic changes in the real estate market. But these results show just as clear that personal engagement can have positive effects, both for the prospective seller, and the agent, broker, or marketer who reaches out to them.
We cannot control a great deal of the market right now. Yet I believe that professionals with a capacity for well-executed marketing are far from powerless in achieving their goals for the year. In times like these the listings are in David Knox’s 7 D’s:
- Death,
- Divorce,
- Diplomas,
- Diamonds (engagements),
- Downsizing (10,000 people in the US turn 65 every day),
- Daily Grind (job changes), and changes in
- Discretionary income.
