The terrible twos... (of Real Estate)

Parents always refer to "the terrible twos" when talking about raising children. Well one might say that real estate is going through this period right now, and for newer agents and loan officers especially, we are dealing with our version of the terrible twos.

Children act out. They cry, throw tantrums, and generally misbehave. Well...

• High interest rates
• Inflation
• Low inventory
• Government unable to govern
• Class action lawsuits
• Mass exodus from the real estate industry
• Poor communication among peers

That list (and more) are the behaviors dominating our industry right now. Sounds a lot like the terrible twos to me.

The industry is throwing a tantrum and we are all trying to deal with it. Brokers are fighting with the NAR, local boards of real estate are caught up in class action lawsuits, lenders are struggling... we are dealing with a petulant child named "real estate".

But like any parent will tell you... it gets better. If you have 2 children you go through it twice, four children means 4 times dealing with "the terrible twos". Well for many in real estate this is the first time, but for me I have watched this happen several times... after all, market shifts happen. I was here in 2008-2010 when the industry threw a huge tantrum... now we have it again. But like parents will say... it will get better... and real estate will as well.

The market will shift, the rates will come down at some point (and buyers will get used to higher rates). Inventory will slowly increase (wanting to hold onto your 3.5% rate will only last so long before the need for a bigger home, different location, floor plan needs or more make people sell). Builders will build more homes. Lawsuits will settle or end. It will get better.

There are three things I know from experience, and I have no reason to think this tantrum will end any differently.

• People leap into real estate during easy markets... they leap out when you actually have to work hard. We are seeing agents and lenders leaving every day... it has happened over and over throughout my career.
• Those that stay in, keep working, keep prospecting will still sell homes, and when the market adjusts they will see their business grow.
• The market will shift, and we will find ourselves in a great market again. Then it will shift, shift again and again if we stay in the industry long enough.

I love the real estate industry. I love helping clients with their mortgage needs. I do it every day, and have done it for 3 decades, through tough markets and easy ones, and I have seen a lot of tantrums. But I look forward to 2024, I look forward to the next shift and I will be here when it happens. I hope all of you are still here with me.