Arizona Real Estate Agents Gathered in Mesa July 15th for RE / MAX Coaches’ corner To better understand the current real estate market, Nick Bailey, President of RE / MAX, and Wayne Fredrick, Owner See Local Consultation.
“We are probably in the busiest real estate market ever – worse than the 2008-2011 recession. This market was bad for certain market segments, but now it is stressing buyers, sellers, listing agents, buying agents, lenders. , appraisers and inspectors, because there are so few stocks across the country, ”explains Fredrik. He believes these dire circumstances will persist for 18 to 24 months, adding that the strategies that worked a year ago are no longer effective, so successful agents must constantly update their game plan.
“If you are a listing agent, you need to take 30-40 contracts with a client and figure out which one is better, and not always because of the selling price. On the buyer’s side, you have to figure out what can give your buyer an edge in a negotiated deal, ”says Fredrik. “We’ve never had to do this before.”
Agents must be proactive to differentiate themselves in this competitive market. During the event, one strategy was proposed: agents reached out to residents after the sale in the area to inform them of properties nearby that were sold at a certain price in order to stimulate interest. Bailey mentions that a poll in May found that 78% of owners were considering selling their homes.
“We’ll have a vendor market before the end of this year, as well as everything next,” Bailey explains. “Although we cannot ride this phalle forever. The buying activity will slow down and the days in the market will get longer. But we still have millennials who are the # 1 generation buying homes, and accumulated families in the US that new construction is not keeping up with fast enough. ”
The complexity of the job, especially in the current market environment, means that the vast majority of agents choose to leave the industry entirely. “Barriers to entry are low because it is easy to obtain a real estate license. But the barriers to success are high. What’s happening is that 87% of people who get a real estate license don’t have it five years later because they don’t sell enough homes, ”Bailey notes, adding that many enter the business thinking they can get rich quickly without having to work hard.
On the other hand, Bailey believes that the current market will not repeat itself in 2008. “This is why we don’t have a bubble compared to more than a decade ago: of all homes in the United States, 34% are not renting. 64% do not have a mortgage. Only about 2% of homes across the country have negative equity. We will see a gradual transition in the market as things are going a little slower compared to the crash. “