There is a lot to learn and understand about the housing market, especially amid shifting conditions and economic uncertainty in the U.S. As if navigating the market wasn’t complicated enough for consumers, the start of a new year filled with projections of supply shortages, higher mortgage rates and elevated inflation adds further complexity that agents will need to guide folks through.
The silver lining, however, is that agents who can position themselves as educators and local sources of vital information stand a great chance of capturing more business in 2023. Toward that end, here are four topics you need to brush up on, and educate consumers on, in today’s market to set yourself up for success this year.
Current market conditions
One of the more apparent topics agents should be educating consumers on is the housing market’s current state. While things are slowing down from the frenzied, pandemic-induced housing market of 2020 and 2021, the cooling housing market of 2022 and the changes it brought are convoluted and potentially scary for buyers and sellers who may be concerned about market crashes and bubbles bursting. The truth is that the housing market is stabilizing and getting back to a more normalized state. You should be reiterating and re-educating folks regularly on the various factors at play to stymie panic and keep consumers interested in participating in the market.
Pricing your home
Coming out of the pandemic, consumers, sellers in particular, grew accustomed to the trajectory that home values were on, despite the uncanny surge that the market saw. Last year there were plenty of signs that those days are over, meaning that listing agents will need to work on aligning sellers’ pricing expectations with the reality of the current and future market conditions. Brush up on your understanding of how home prices have moved in the past decade—or longer—and be ready to bring the most recent data points to the table as you walk clients through pricing strategies.
Real estate financials
The financials of real estate can be a mystery to many buyers, particularly first-timers, which presents an opportunity for agents who can educate consumers on the ins and outs of this process in an authentic and engaging way. As you hold consultations with prospects, think of different ways to break down topics like down payments and closing costs for clients and while helping them figure out how that will work into their budgets. Being an agent that clients also view as a financial planner—or at least part of their financial planning team—and educator can pay dividends in the long run.
Housing affordability is a persisting challenge for buyers in today’s market—and seemingly worsening in some cases—making it critical for aspiring buyers to find financing options that help turn their homeownership dreams into a reality. From understanding programs for first-time buyers to being in tune with different products coming down the pike, an agent that can effectively educate and navigate buyers in this industry segment will have business flowing in consistently.