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Where are we on this roller coaster ride, and how do we get off this thing? If you had hopes that 2022 would represent a return of some sanity, you are in good company. I’ve had the pleasure of getting to speak with hundreds of agents from around the nation and the chorus is the same. We are exhausted, burnt out, over worked, anxious for our clients, and frustrated across the board. We, our clients, and our industry partners are losing sleep and running low on patience. And, it’s no wonder!
In a matter of 6 months our clients have lost a stunning amount of buying power, which was already difficult. Median home prices are up over 10%, mortgage rates went from an average of 3.25% in January to 5% now, which even reflects a softening from a high of 5.7% a month ago, and our buyers are feeling the pinch. A buyer entering the market is paying a whopping 50% more a month for the same median home they wanted 6 months ago and struggled to compete to win. Sellers might still benefit from the heat when they sell, but they’ll get burned on the buy-side when mortgage rates erode any gain they may have seen from rising prices (which they’ll be paying too).
Couple all this with the ongoing disruption of battles over agent commissions and the competition for nearly nonexistent properties to sell (inventory is half of what it was in 2019), and it is no surprise that we are all wondering what the future holds for us as professionals. Yet, if you review the historical numbers collected by the National Association of Realtors®, history shows that when the going gets tough, consumers look to their agents for comfort. The number of buyers and sellers who report they used an agent for their transaction remains near record highs, and Realtor® job satisfaction far outpaces the national average for workers by a large margin.
Long-time agents know that honing our skills and communicating our value to our customers and clients will keep our industry thriving…whatever the market.
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