From the Desk of Tina O'Brien
While we continue to feel a drop in activity in some pockets, now is the time to establish strong, working relationships with your potential future sellers and current buyers.
We can see an upcoming predicted convergence of lower interest rate, and 24 months of sidelined buyers. With anticipated interest rate drops from 1 to 3% between now and 2025, available inventory will be quickly taken up. However, sellers will also feel that they are better able to qualify for new mortgages and so we may see a potential inventory increase as they feel comfortable selling their current home.
The lower rates could cause a convergence of sellers being able to put their properties on the market to right size at the new rates while demographics signal buyers will engage in the market due to lower rates and pent up demand.
If anyone is thinking about buying the window of opportunity might be now. There are likely very few dividends in waiting. If you’re waiting for the interest rates to go lower the potential of increased prices to a predicted 10 to 15% will significantly offset any short-term elevated interest payments. So the time for your buyers to buy is now in short and the time for you to start prospecting for your potential sellers is now. Indicators point to an upcoming boom potential in 2025.
What Do We Do Right Now?
It’s important for us to be prepared for that and to get back to the basics of personal contact. Calling your contacting sphere / all past or potential clients, bring the information that we are providing you to your buyers is critical to get them off the fence. The new market conditions are unlike the past 15 years. The days of online leads and transactional selling seem to be over and we are shifting more to traditional relationship territory. Please find attached a copy of the demographics where you can see the different age ranges, and also the CREA graphs which show the relative bust conditions between 2008 and 2023. Busts are historically followed by booms.
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