The real estate market has been impacted by macroeconomic trends, causing a slowdown in activity as buyers hold off on purchasing properties. However, as we move into 2023, there are signs of a potential rebound in the market. Interest rates have risen in the latter half of 2022, which has led to a reduction in home sales.
But, there is hope as mortgage rates have dropped and buyer sentiment has improved. This is evident in an uptick in calls and requests for home showings, closed and pending sales, and increased buyer activity on sites like Zillow.
To capitalize on a potential market rebound, realtors should pay attention to data points such as interest rates, mortgage rates, buyer activity, and search engine trends.
By staying informed on these data points and adjusting strategies accordingly, realtors can position themselves for success while their competitors may miss out. While it's still too early to make definitive predictions about a full market rebound, being prepared is crucial.
Greg and Abe talk about the promising numbers and how you can capitalize on their data. By the end of this, you’ll know what steps to take as you position yourself for gains that your competitors will miss out on.
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The property market experienced a period of skyrocketing interest rates in the latter half of 2022, as reported by Abe.
Interest rates rose by over 100%, going from 3% to 7%, with peak rates reaching as high as 7.37%. This increase in interest rates led to a reduction in home sales, with less than four million homes sold in 2022, representing less than 1% of the total number of houses in the country.
These statistics paint a worrying picture of the state of the real estate market. However, there are indications of a potential rebound as mortgage rates have dropped and buyer sentiment has improved.
Based on observations of buyer sentiment and lower mortgage rates, there is potential for a resurgence in the property market.
Greg notes that the latter half of 2022 saw mortgage rates as high as 7.34%, but they have since dropped by over a percentage point to a national average of 6.09%.
This decrease in mortgage rates is significant as it suggests that buyers may start to re-enter the market as they become more affordable.
This is supported by an increase in buyer activity, as evidenced by more calls and requests for home showings, closed and pending sales, and an uptick in buyer activity on websites like Zillow.
Greg has observed promising data, including an uptick in calls and requests for home showings, an increase in closed and pending sales, and a surge in buyer activity on sites such as Real Geeks and Zillow.
Additionally, search engines such as Google have seen a 33% increase in real estate searches nationwide.
This data suggests that there may be a potential rebound in the market.
However, Greg advises caution in making definitive projections about a market rebound at this time.
Despite this, he offers recommendations for realtors looking to capitalize on a market that appears to be on the verge of recovery.
Greg suggests paying close attention to data points such as inflation, interest rates, and mortgage rates to help guide strategies for a potential market rebound.
He also recommends diving deeper into buyer-centric data, such as buyer activity on your website or Real Geeks, Google searches, showing rates, and closed vs. pending sales.
By monitoring these data points, realtors can make adjustments to their strategies and capitalize on the potential market rebound.
For example, most realtors may have cut back on lead generation during the latter half of 2022, but with the data now showing a positive market atmosphere, it may be time to re-invest in lead generation efforts.
While this may seem risky at first, it will pay off once the market rebounds as more leads will be available to call.
In conclusion, Greg stresses the importance of being prepared for a potential market rebound.
While many realtors may still be cautious due to the effects of the market in 2022, being ready with a list of leads will put you in a position to capitalize on the market recovery.
With leads on hand, realtors can take advantage of opportunities that others may miss. By the time competitors re-invest in lead generation, it may be too late for them to catch up.
The key takeaway is that early preparation is better than waiting for it to be "too late."