THE “SHIFTING” REAL ESTATE MARKET
Wow, when they call todays real estate market a “shifting market,” they are right on target. It keeps shifting, and shifting, and shifting . . . Every time we turn on the news theres a new development that affects our economy and therefore the ability of Buyers to “buy” and Sellers to “sell.”SHIFT, a recent book by Gary Keller, co-founder and Chairman of Keller Williams Realty, begins with the following paragraph: “The Real Estate Market has shifted drastically and dramatically. Sales volume and the number of transactions have dropped significantly. Inventory has reached an all-time high. Buyers have never been more reluctant. Fear is rampant, anxiety is high, and people are getting out of the business left and right. Sound familiar? Sure it does. The year was 1979!
“Does it make us feel better to know that this has happened before? No.
But can we learn from it? YES!
Fast forward to 1987 and it happened again. This time, changing tax laws had a disastrous effect. And guess what? History repeats itself. Now, in the 21st Century, we are faced with this same situation again. But this time there are real differences. In 1979, mortgage interest rates topped 18 percent. Last week, Buyers were still getting approved at under 5 percent through local lenders. That is a HUGE difference! And todays Sellers are becoming realistic with the pricing expected by today’s Buyers, bringing our market back on track.The real estate business is “cyclical.” An experienced real estate agent and a mortgage lender will understand this and be prepared to give counsel that is in tune with the current market. Lending laws, availability of funds & appraisal requirements have all been diifferent in these various markets and your strategy as a Buyer or Seller needs to adjust accordingly. Remember though, the news you heard last week is “old news,” so stay in touch with your local, trusted real estate team (In Northern VA, that’s The Belt Team!) for updates on this ever changing market.
As we said above, it doesn’t necessarily make you feel better to know that tough markets have happened before. But you can learn from the experience. Not many real estate teams have been around long enough to see multiple cycles in real estate. But if you’re in the market to buy or sell a home, we think it’s vital you work with one who has. Not only has The Belt Team assisted clients in navigating the markets of 1979 & 1987, but we have continued to lead the way in our industry from that time and on into the 21st Century . . . and our Buyers & Sellers benefit enormously from our experiential learning.
Real estate remains your single most valuable asset if handled correctly. Please dont hesitate to call The Belt Team for all of your real estate needs. (703) 242-3975