What Real Estate Trends to Expect This Fall for Realtors
The leaves are changing, and the weather’s finally starting to cool. Fall is almost here.
For real estate agents, that doesn’t just mean a wardrobe change. Most years, it also means a shift in market conditions.
Are you prepared for the changes that fall might bring?
Here are four real estate trends you can expect as we head into the new season:
1. More time spent negotiating — especially for sellers
Thanks to higher mortgage rates, the market has already started to cool. And unlike a few months ago, sellers don’t hold all the cards anymore. In fact, many are having to negotiate (and even throw in some concessions) just to strike a deal.
According to a new survey from Realtor.com, 92% of recent sellers accepted terms that were “buyer friendly.” This included various contingencies and, in some cases, even throwing in closing costs.
As the weather cools, we can expect demand to continue tapering off, meaning seller flexibility will be even more important.
Make sure you set proper expectations with your clients and prepare them for the incoming market shift.
2. Moderating prices
Real estate prices have been on a tear in recent years. And while prices are still rising in most real estate markets, they’re doing so at a much slower pace.
On top of this, price reductions are becoming more common. In fact, according to Redfin, 15% of all sellers cut their listing price in July — the highest share ever recorded.
If buyers continue to pull back from the market as mortgage rates rise, the trend will likely continue. By July 2023, CoreLogic projects home price growth will slow to just 3.8% — down from the almost 16% seen this year.
3. A slower-paced market
The last real estate trend you can expect is just a general slowing — in speed, price growth, and in competition. That last one is important since the last few years have been some of the most competitive we’ve ever seen.
Redfin’s bidding war rate is just one sign of the impending slowdown. According to the brokerage, nearly 70% of all buyers found themselves in a bidding war earlier this year. Now, it’s just 44%.
On top of this, showings have slowed too. According to ShowingTIme, U.S. home showing activity fell 17% in July.
In the western part of the country, it was a whopping 44% decrease.
4. Be prepared for a changing real estate market
As we head into fall, the world of real estate is changing. Need a partner to help ensure your clients get the care and attention they deserve during this transition?
Reach out to an Embrace Home Loans office in your area today.
You can also check our real estate agent resources for more guidance.