The Mortgage and Real Estate Market: Let’s Get Real
“As we move through spring homebuying season, buyers and sellers remain at a standoff. Persistently high mortgage rates and home prices continue to put off many prospective homebuyers as fears of ongoing inflation, bank sector volatility, weakening economic growth and an impending recession hang in the air.” – Forbes, May 3, 2023
If you are engaged in any aspect of financial services, mortgage lending or real estate, you must be well aware that what was once a lucrative market has grown uncertain and choppy. As a motivational financial services speaker, I am all too aware of the challenges.
The recent Forbes article I cite above, does not try to sugar-coat the news. While 30-year mortgage rates have modestly weakened, inflation is still dominating the market and the looming recession, even if weak is frightening home owners into staying put. There is (no surprise) the possibility of yet another rate hike. “Cash offers” are nice, but in a time of bank failure, it is little comfort.
“Between the lack of supply, interest rates more than doubling in the past year and pricing in most of the country remaining relatively flat, the barrier to entry has never been more difficult to pursue the American Dream,” Pierre Debbas, managing partner at Romer Debbas, a real estate law firm (CNN, April 27, 2023).
Coming to a “you,” near you
It is all going to come down to you. As a motivational financial services speaker, I need to be brutality honest and inform you that the so-called good times are over for this market, and anyone in mortgage lending or real estate understands that determination is the word of the day.
Though barriers to home ownership in the form of lower credit score requirements appear to be improving, those barriers will also come with a price starting with mortgage insurance. No one wants a repeat of 2008.
Does a poor housing inventory mean “no inventory?” Of course, it doesn’t. Does weak economic growth mean “no growth,” or inflation mean “nothing is affordable?” Neither statement is true.
The difference maker in this equation is you. If the consensus is that buyers and sellers are truly at a standoff, the consensus needs to be shifted. The mindset must become more creative. There are always solutions, but it will take extra effort to find them and it will take flexibility to show buyers or sellers that you are the person who can help them achieve their goals.
In this market, where recession might appear and regional banks may fail, what is your personal dream, your unique plan to protect your clients? How will you reassure them? Will it be business as usual or an effort to solve problems and work around roadblocks?
Though I have been focusing on “you,” this is the precise time, the most needed time to expand your circle of influence. Surround yourself with hard-working people beyond your market; people who can serve as your community eyes and ears, be they interior designers, landscapers, home builders or plumbers. Because they also know your market.
Above all else, remember it’s time to get real and to face the future together. The task is not impossible when you believe in yourself.
To reach Scott Burrows, Motivational Financial Services Speaker, contact Scott today at: 520 – 548 – 1169 or through this website.