About changing real estate market and how to achieve success in this context. Some practical tips.
Regarding the real estate market. If you are a first-time buyer, there is something I want to tell you. I share the story of Drew and Lauren Coppel of Herndon.
They are a couple from Virginia. They purchased their current handle in October 2019. Furthermore, they were looking to buy a larger home early last year. But they were reluctant to abandon their 30-year mortgage rate of 2.899%. They had obtained it by refinancing in 2021.
When mortgage rates rose above 6.5% mid-year, the Coppels decided to freeze the search for your home.
“We’re going to wait for rates to go back down,” Lauren says. “We’ll probably wait for them to drop below 6% so we can get more bang for our buck.” Meanwhile, your down payment savings will increase.
They will focus on the features of the home that matter most to them. And they will research the neighborhoods they want to live in.
Many potential home buyers experienced similar situations. Mortgage rates rose from 6.48% in January 2023 to a 23-year high of 7.79% at the end of October. This created an affordability crisis for a large percentage of those seeking housing. Only 15.5% of homes for sale in 2023 were considered “affordable.”
This means that the estimated mortgage payment was no more than 30% of the county’s median household income. According to Redfin, an online real estate brokerage.
Why lead generation in real estate market?
The housing market took a beating last year. The one-two punch of swelling mortgage rates. And record-low home supply dealt a tough blow to many aspiring home buyers in 2023.
Generating leads is always welcome in a real estate business. Connekter offers a wide variety of tools. And it adapts perfectly to these circumstances. How do we do it?
If you want to know a little more, continue reading. Here I talk to you about some tips that will be very useful to you. Above all, if you want to walk towards success from your business.
The real estate market improves
For home buyers, the outlook is a little better this year. Fortunately. There are two biggest problems for buyers. High mortgage rates and the shortage of homes for sale. And they have already started to improve.
As of early February, the average 30-year mortgage rate was 6.63%, according to Freddie Mac. Housing supply is also growing. In December 2023, there were 9.1% more newly listed homes compared to December 2022. This is according to data from Realtor.com.
Redfin says median sales prices for existing homes will fall 1% in the second and third quarters. This is compared to the same quarters in 2023. Economists at Realtor.com also predict a modest decline. They predict that average prices will fall 1.7% over the course of the year.
Well, how to generate leads in these circumstances of the real estate market?
As a realtor, you must be clear about a lot of information. This is a good reason to access an online platform. And if it also helps you generate clients, it is much better.
Connekter, for example, has this among its advantages. It allows you to centralize all the information. That is, all the data in one place. With a minimum of biases.
Additionally, Connekter works with pre-qualified clients. This not only saves resources. It also allows you to have greater success in your sales. Since they are clients who already know our services.
You will also save time. Time that you can dedicate to other matters. How to be aware of other changes in the market.
Some tips for real estate buyers in real estate market
Buyers can expect some improvements in the coming months. Regarding borrowing costs and housing supply. Some ways to be successful this year:
Stay tuned for new listings
Monitor new listings closely. It will help ensure you have a chance at finding homes that fit your criteria.
Find an agent who specializes in your market
It’s imperative to find an agent who knows your market like the back of their hand.
Connekter can help you with that. You will have access to information segmented according to several criteria. Area, location, degree of interest, etc. This way you can classify and prioritize the information. Know your market and its possibilities better.
Seek help with your down payment
But buyers who put less than 20% down on a conventional loan have to pay private mortgage insurance, an additional monthly fee that ranges from 0.3% to 1.15% of the loan amount.
Get your financial ducks in a row
Most buyers take out a mortgage to buy a home. Get pre-approved for a mortgage. It will show you the size of the loan you are eligible for. This will help you focus on your home search.
Take the time to explore Down Payment Assistance Programs
They help eligible homebuyers cover the initial costs of purchasing a home. Down payment assistance can come in the form of grants or loans.
You can use the down payment resource finder tool. To see if you are eligible for down payment assistance. How could it have been useful to the Coppels.
Connekter can also provide you with alliances. It works by joining other websites. This way, your business information will have greater reach. Through forms and other forms of data collection. The leads will come directly to you. You can then access them from a personal control panel.
These are just some tips. They will help you in this changing world of real estate. If you want to know others, read here.
And if you want to learn more about Connekter and how it can grow your business, leave us a message. We will not take long to contact you!
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