Knowing what to say at the right time is necessary for every agent looking to weather the shifting housing market and its effect on today’s buyers.
Housing affordability and inventory constraints have been pain points for buyers, leaving them frustrated or disillusioned with making their homeownership dreams a reality. Managing those emotions and helping your clients see the brighter side of things is vital for daily dialogue with current and potential buyers.
As the market shift persists, here are a few ways you can mitigate any mounting frustration among your buyer clients.
Positive signs for inventory
While the supply of for-sale homes is still low relative to where they typically are monthly, there are signs that inventory levels are improving. Reports suggest that the national supply of active listings increased by 30.7% in July YoY. This is something worth mentioning to clients who have lost bids in the past year or struggled to find something in their price range. As you touch base with them, share the good news and keep them updated on what listings are hitting the market.
Highlight shift in price growth
Rising price tags for homes have been a significant pain point for buyers in recent years. You can put your buyers at ease by showing them the numbers and leaning on the big picture. Reports indicate that while home values are still climbing, the pace is slowing. In some cases, sellers are even cutting down on their prices. This is a good time to leverage relationships with seller agents in your market and get an inside track on any concessions coming down the pike. When communicating with a buyer or your sphere of influence, try including some metrics in your newsletters and individual outreach efforts.
Addressing mortgage rates
Once the shining star of last year’s housing market frenzy, mortgage rates have climbed out of historic lows and added to the affordability concerns for many potential buyers. Providing your buyer clients with some perspective is a good approach. For example, rates may be higher than last year’s sub-three percent, but they are still lower than 2018—not so long ago. At the same time, they’ve come down a bit from what may have been their peak a couple of months ago. You can also help your clients explore different financing options, including products like adjustable-rate mortgages, which have seen a slight uptick in popularity as mortgage rates continue to rise.
Reaffirm your role
There’s much uncertainty swirling around the housing market and the U.S. economy, which has everyone worried about what the future holds. Buyers are no exception. Check in with your clients and remind them that you are their trusted advisor in this shifting housing market, continually highlighting good signs you see in today’s market.