A real estate agent explains why homes will keep selling even if the market shifts. Low inventory and motivated buyers mean agents who find sellers will still close deals. Two follow-up episodes cover specific tactics to succeed in a changing market.
December 2021.
7.5% (speaker's reference to official figure).
20% to 50% over the last year (speaker's claim).
Approximately 6, 9, 12 months, possibly more, maybe up to 24 months.
Here's the point I want to make, is that even if three quarters of the buyer were to leave the market, we don't have enough inventory to serve the buyers that really need or badly want to move. And they're not swayed or they're not discouraged by an increase in rates or they have cash, meaning that they're not going to mortgage most of the property. It's a physical asset. When there are uncertain times, people want to be in physical assets. So there is an argument, and I believe that we've got some challenging things ahead of us, which hyperinflation. They say 7.5% inflation, but if you look at the gas pump, the true inflation on most everything you're buying is 20 to 50% over the last year or so. So that's not going away. I think we've got some tough times ahead of us. But if you look at just the simple fact that there are buyers out there for the number of homes that are coming on the market, I think we're going to be okay. Like, I think there's just a period of time, 6, 9, 12 months, maybe more, maybe 24 months, where every house that comes available, whether it's from a new home builder or whether it's a resale, every house that comes available where the seller has some motivation, some purpose to moving, is going to sell. I don't believe we're going to fall into an apocalypse. I do think there's a challenge with all of these refis and folks over the last three years that bought at ridiculously low rates or refied. I've refied my home and took all the cash out of it because I don't want to. I want to be in a very healthy cash position. Although I didn't keep it in cash. I've got crypto and some. Some physical silver, but I don't. I was going to lock in that ridiculously low rate, and I think I did it in just before rates picked up. So my refi was in like December 2021. And so all this is really happening sort of here recently. So. So. So I think there's a chance that, you know, our job as agents, it's to get after the inventory, to have conversations with, you know, folks that are in a position to sell. In every market, there's always folks that have to sell. So the next one or two episodes, I'm probably going to break it down. In two episodes, I'm going to go through what to do to crush a shift. So the title of this episode is that what is it? The shift happens or what? The shift, you know, Tom, and, and I'm. I'm not going to leave you hanging here. So if the market shifts, which it very. Melt, very well might, I definitely do not have a crystal ball. Although that ball behind me there, if you're watching on YouTube, is very cool. It's spinning on an axis. It's not crystal, though. It's an actually a little moon. So I don't have a crystal ball. Although that buffalo behind me, if you can see, if you're on YouTube, it's actually a buffalo and it is crystal. So between the two, I guess I have somewhat of a crystal buffalo next to a moon that is lit and spinning without touching anything.
