We’re getting into the slower part of the year for housing — but this year may be even slower than normal.
With mortgage rates high (and potentially rising), the market is poised for a major slowdown this fall, and agents will want to prepare for this transitionary period ahead of time.
What should be on your radar as we head into the colder months of housing? Here’s what to expect:
1. Fewer buyers.
As rates rise, buyers get priced out, and conditions, overall, slow down. Agents can expect this pullback to continue in fall and winter, with fewer buyers entering the market.
It sounds unfortunate, but for your clients who remain in the market, it’s good news. They’ll have less competition, more options and, most importantly, more clout at the negotiating table. This can help you get them the best deal possible.
2. A slower pace
With fewer buyers on the market, inventory increases, and the general pace of housing slows. This will make for much less frenzied conditions. You won’t need to submit offers within hours of listing, and you won’t need to prep for bidding wars on every single property. Your buyers should also have more time to tour properties and really consider their options before making an offer.
3. Seller hesitancy
There aren’t going to be as many homeowners clamoring to list their properties this fall. In fact, many owners may be staying put for as long as possible.
The ones that do sell will be because they need to — for a job relocation, for family, etc. With higher mortgage rates, few owners will want to trade in their below-3% loans for a 6 to 7% one, so opportunistic sales will fall by the wayside.
4. More negotiations
You’re going to spend some more time negotiating this season, as sellers no longer hold all the cards. There will likely be more contingencies, more repair requests, and more haggling on price. You can also expect more deals to fall through, especially if rates keep rising.
The housing market is changing
There’s no way to tell for sure where housing is headed this fall, but one thing’s certain: Conditions are changing. Want to make sure your clients are always cared for with a good lender, whatever may come? Get in touch with an Embrace Home Loans office in your area today. You can also check out our agent resources for more guidance on growing your business.
