How’s this for an outlier’s point of view? Now is the best time to be a real estate professional.
You might be wondering why now is the best time, when we’re in the midst of a deadly pandemic, the largest jobless rate since the Great Depression, and major protests flooding metro areas across the country.
Remember that are opportunities during the greatest times of change. When others are looking for an exit—a way out of current circumstances—you need to go into action.
Despite everything we’re in the midst of, the housing market is experiencing a mini-boom that will last, perhaps, until the end of 2020. You need to take advantage of this demand.
What are the signs of this market uptick?
- Purchase applications have been increasing for several consecutive weeks.
- Real estate searches on Google and on sites such as realtor.com® and Redfin are seeing increased traffic levels.
- Most markets have seen home prices remain flat or increase.
- Brokers and agents are seeing bidding wars.
- Historically low interest rates are helping buyers.
- The U.S. added 2.5 million jobs in May.
- COVID-19 pandemic restrictions have created an urgency to buy single-family homes with designated home offices and outdoor space.
- Remote work has created demand in “second city” markets.
We could go on, but the fact is that right now, there are dedicated, focused, motivated buyers and sellers who need to move and want your help.
Among the biggest reasons the market has stayed as stable as it has are the government relief programs designed to help people and small businesses affected by the COVID-19 pandemic. The CARES Act provided stimulus funds, extended unemployment benefits to independent contractors, and created Small Business Administration emergency loans and grants. Fannie Mae and Freddie Mac as well as many private lenders started offering mortgage forbearance options. However, when these relief programs go away, we may see a different housing market with the potential for more foreclosures and REOs.
But real estate will play a role in our nation’s economic recovery. According to the National Association of REALTORS®, the real estate industry accounted for $3.75 trillion—or 17.5%—of the gross national product in 2019. The total economic impact of a typical home sale in the U.S. is, on average, $88,416, which includes income generated from such things as commissions, fees, moving expenses, furniture and remodeling expenses, income earned in other sectors related to the home sale, and new-home construction.
Right now, real estate professionals should focus on motivated sellers who need to sell their homes. The more listings you are able to generate, the more business you will have because listings tend to generate more business now and into the future. Once you sell a motivated seller’s home, that seller will often come back to you again or refer other clients to you to sell their homes next.
You can’t control the pandemic, joblessness, or protests, so focus on what you can control—your own actions and your business.
An agent can work from anywhere with a computer, phone, and a car. What other business requires so little to generate income? There are buyers and sellers out there who need your help now. Help them.