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Rapidly Rising Housing Costs
– The national median home price skyrocketed by 15.4% over the past year, increasing the stress on both buyers and sellers.
– With higher prices, people are less inclined to move, leading to a drop in overall real estate activity.
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Decreased Inventory
– There are far fewer homes on the market than there used to be. As of January 2021, unsold inventory sits at a record low, down 26% from a year ago.
– Houses are selling quicker, with properties typically on the market for just 21 days.
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Job Insecurity and Economic Uncertainty
– Due to the ongoing pandemic, millions have faced job losses and economic instability.
– Many people are unsure about their future job stability, which impacts their willingness to commit to a home purchase.
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The Impact of Technology
– Many people are turning to online platforms that make buying and selling homes easier than ever, challenging the age-old business model of the professional realtor.
– While this isn’t necessarily bad for the housing market, it does pose a threat to the traditional role of a realtor.
And Now, The Hot Take…
Can We Renovate The Housing Market?
Whew! Talk about a real estate market going through a serious renovation — without permits. Prices are skyrocketing faster than a firecracker on the Fourth of July, while inventory has taken a deeper dive than a pearl diver on double espresso. Gone are the days of leisurely browsing listings in your PJs. Nowadays, you’ve got about 21 days to seal the deal or you’ll find a new ‘Sold’ sign on your dream home.
The National Association of Realtors are noticing members dropping out faster than a cake in the oven with the door left open. Perhaps it’s the pressure of the real estate roller coaster, or maybe it’s the rather unfriendly new kid on the block, technology, shoving traditional realtors aside.
The times are changing and boy, is it about as smooth as a ride on a wooden roller coaster. But there’s always hope. The realtors who survive this shake-up will be the ones who can adapt, embrace the new rules of the game, and offer value that can’t be replaced by technology. After all, the human touch is more than a swipe right or left on a property app. Here’s to all the realtors out there – may your clients be many and your closing deals quick!
Original article: https://www.inman.com/2024/01/15/why-nar-may-be-primed-for-record-membership-fall-in-2024-triple-i/
