The real estate market is experiencing some big changes. According to a recent article by CNBC, the number of mortgage applications fell to a 22 year low last week. They also pointed out that homebuyer demand is down by about 19% compared to the same week one year ago. On the new build side of things, the National Association of Home Builders reported that confidence within the housing market has sagged due to the impact of high inflation and rising interest rates that have resulted in “dramatically slowing sales and buyer traffic.”
Interest rates are climbing in an effort to combat inflation, borrowing conditions are much tighter, and, as a result, buyer purchasing power and demand are sharply diminishing.
I Don’t Mean to Be Doom and Gloom
I’m not trying to kill the mood, I just want to lay out the facts of the real estate market situation, so agents and ISAs like you can make the proper choices and adjustments now. Because the truth of the matter is that a slowing market does not have to kill your business. It’s true that a slower or tougher real estate market may cause less committed or able agents to exit the industry. But all that means is more business to go around for the agents who are committed to the long haul and to putting in the work.
Thousands of agents entered the real estate industry during the pandemic, largely due to surging home prices and a massive amount of demand. But many of them may not have what it takes to weather more difficult times.
The question you need to ask yourself is, which kind of real estate agent are you? Do you want to put in the work and build a successful company and career in any real estate market? Or are you a fair weather agent that wants to get out when the going gets tough?