Real estate is both a hyperlocal industry and one highly susceptible to both national and macroeconomic trends. Paying attention to the bigger picture might as well be in the job description for any agent or broker. Here are some ongoing real estate trends that agents, brokers and other industry professionals alike should keep in mind as the business, the rules and the technology change.
How NAR’s rule changes will shift business conduct
NAR’s agreed-upon rule changes, as part of their class-action settlement, have now been in effect for two weeks. If you haven’t been paying attention, now is the time to get caught up, as these rules will change how you run your business. Say hello to new touring agreements and goodbye cooperative compensation offers on MLSs.
To settle into this new world, observe how your colleagues and/or competition are adjusting. Are they still marketing cooperative compensation outside the MLS or is the practice falling by the wayside altogether? Are the new rule changes actually working to decrease the alleged steering to higher valued properties?
Is AI here for the long haul?
The technology industry thrives on FOMO (fear of missing out). The latest, shiny new product is generative AI and the real estate industry has been awash with praise for the technology. We all remember when cryptocurrency and NFTs were also hailed as the future.
AI has not proven free of red flags, from highly negative environmental impacts to reported financial losses to repeated lawsuits over improper use of copyrighted materials. Which way the pendulum swings is not as assured as it seems. Always dig deeper before betting your farm.
Interest rates look to be slashed–by how much?
It is all guaranteed that interest rates will finally come down when the Federal Reserve board meets on September 17, 2024. Even if you don’t trust economist forecasts, Federal Reserve Chair Jerome Powell himself recently broadcast such intentions.
What isn’t guaranteed is how much rates will be slashed, or if the Fed will continue bringing down rates at subsequent meetings, and if they do, when they’ll stop. All the more reason to pay close attention to the news, both interest rates themselves and ramifications of them like mortgage rates (see RISMedia’s weekly Mortgage Mix, wink wink). Lower mortgage rates can be a selling point for buyer clients, though if they’re waiting for rates to drop, also explain that the mouth-watering mortgage rates from the height of the COVID-19 pandemic are, regrettably, a blip of history.
