The real estate market is one that needs a level-headed approach. There are a lot of outside forces that make predictions about the market’s performance for the next quarter, year or decade. However, as we saw in the previous quarter, while economists warned about rocketing interest rates, remarks from the Federal Reserve seemed to calm those worries. In any case, you as an agent ought to be adaptable to the market, both if and when it cycles.
This blog will explain how to avoid the relentless stress and nerves that come from various market predictions. You’ll see what the real estate professionals at Baird & Warner predict for the future market, as well as their tips on drowning out the noise and being an agent who can adapt with the market. If you’re part of the TL; DR crowd then start your free seven-day trial of AgentEDU today and watch the full course, “Learning Your Real Estate Market.”
What’s around the corner
Baird & Warner President and CEO Steve Baird stated in a video exclusive to Chicago Agent magazine that 2019 will be a good year for the market. He used rising wages, low unemployment and the economy to bolster his prediction. Baird & Warner President of Residential Sales Laura Ellis made similar positive predictions for 2019. Ellis mentioned, “When I look into my crystal ball, I’m very optimistic for 2019. With unemployment low, with rising wages and the market coming into more of a balance, they both saw the coming of a “very favorable environment.” The situation gives perspective homebuyers an advantage; higher wages and a good economy may place them on good footing.
Although Baird notes that 2019 will face a bit more headwind than the previous year, he blames this on interest rates; as they went up roughly half a percent in the last year. However, he mentions that slow incremental increases to the rates won’t affect the market as much.
It’s when, not if
Both Ellis and Baird noted that the will market shift, albeit in a slow manner. One thing that every agent needs to be able to do is adapt to inevitable market changes. Ellis explained that change is on the horizon and real estate offices and agents will need to be prepared to adapt. “Even when the market cycles – it’s not an if, it’s a when. We just have to be paying attention and we need to be able to shift how we’re doing business, how we’re dealing with those changes,” Ellis stated in the video.
A recent whiff of a possible shift is evident in the fact that the Illinois Association of Realtors reported home sales in January were down 22.9 percent year-over-year, however, they also noted the continuing list price increases, as well as a three percent increase in inventory over last year. The association mentions the rough weather and government shutdown as possible factors, but others still worry if this will be a continuing trend.
Food for thought
With factors like rising wages and low unemployment, there is little to worry about regarding the near future. Nonetheless, both Ellis and Baird note that market cycles are inevitable and factors like interest rates could play a role in the future. They state that agents and real estate brokers must pay attention to the indicators and be ready to adapt to the market. Wage growth, unemployment levels, list prices, inventory levels, interest rates and other indicators are key factors in being prepared. Failing to be prepared can cause confusion and unease; both for you, as an agent, or for your brokerage. It’s better to be ready.
To learn more about becoming an expert on your market and understanding market indicators, start your seven-day free trial of AgentEDU and gain access to our “Learning Your Real Estate Market” course.