3 tips for positive market conversations with clients in 2024
Let’s dive into this blog post with a sprinkle of optimism, shall we? Enough chatter about rising rates, low inventory and affordability challenges. Let’s shift our focus to the recent whispers of encouragement echoing through the real estate corridors instead.
Economists’ predictions and the recent Fed announcement suggest promising changes are brewing. As a result, we’re here to offer up three practical tips for how you, as a REALTOR®, can talk to clients or prospects about the market in a more positive light as we step into the new year.
Emphasize mortgage rate opportunities. Recent good news is on our side. The Fed decided to hold interest rates steady (the third consecutive time), and multiple anticipated rate cuts are in the pipeline for 2024 and beyond. The central bank foresees three rate cuts in ‘24. For your clients, this translates to an expected decline in mortgage rates, possibly even before the official cuts. As changes unfold, more drops are likely to occur.
Highlight projected inventory improvements. NAR’s chief economist, Lawrence Yun, predicts a notable 30 percent increase in housing inventory. Owners stuck on the sidelines, hesitant to part with low mortgage payments, might be ready to make a move. This shift in mentality could help alleviate the current housing inventory shortage by offering more choices to buyers, signaling positive evolution in the real estate landscape for both buyers and sellers.
Discuss affordability and legislative initiatives. With mortgage rates expected to cool and inventory on the rise, buyers might finally catch a break. There’s even bipartisan support gaining momentum for the Neighborhood Homes Investment Act, a plan to create more affordable single-family homes. Your clients might soon find that turning their homeownership dreams into realistic and exciting opportunities is on the horizon.
So, fellow real estate professionals, as we bid farewell to 2023, let’s draw inspiration from recent glimmers of hope starting to trickle into the real estate scene. While it may be gradual, in the words of Bob Dylan, “The Times They Are a-Changin’”. With skillful navigation and a dash of optimism, you can expertly guide your clients through the exciting twists and turns of their buying and selling journeys. Here’s to a more positive and prosperous 2024!