What are you thinking...
I have 4 questions for all my friends who make a living in the real estate industry. They are questions that are key to the next few years, key to our futures, and sadly, we don't know the answers with certainty. So what are they?
Number 1: What will rates do in 2025 and beyond?
Number 2: What will the actual fallout from the NAR Settlement look like, and how will it impact the industry?
Number 3: Will we see inventory increase significantly?
Number 4: How many of us will still be in the industry 5 years from today?
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I know we all wish we had the answers, but we will have to wait like everyone else. So what question is the most important? I have to believe it is actually number 4, the question of how many of us will still be in the industry 5 years from now. But if you think about it, the first three answers are likely to be the cause of the answer to number 4.
If rates stay up, or rise further, that will not have a positive impact on many careers, probably leading to many moving to other industries and jobs. We started the year with most experts saying rates would come down by year end, now many say they will trend up. We cannot control this, we can only keep working and remember that in every market there are buyers and sellers to help.
The NAR Settlement is of course the huge elephant in the room, but what does it really mean. New forms yes. Having to show buyers your value for certain. I hear agents saying they are retiring, or leaving the industry over this. But it is a change that we will learn to work with, it will become normal, and while there will be some disruption it will pass quickly unless we don't let it.
Inventory is the biggest issue I see, but the low inventory also is a huge help in a way. Buyers are still making strong offers, days on market is low, and the market is still selling houses. We see builders selling like crazy, and building spec homes by the thousands to help with inventory issues. There is no doubt that there is a pent up desire by many to sell their home, but we need places for them to go. But this is actually keeping the market busy, and I believe we will see more inventory coming onto the market.
So what do you think?
The big question you must answer is will you be in the industry in 5 years? I hope so, I will be, and I hope to be working with you then.