The Market Shift We Have Been Awaiting WHY WE ARE OPTIMISTIC ABOUT REAL ESTATE'S FUTURE
If you have been watching the real estate market over the past couple of years, you have probably noticed it has been ... well, let us just say it has not exactly been red hot. We have called the market soft, slow, challenging ... pick your adjective. Whatever you want to call it, the real estate market certainly has not been the frenzied seller's market we experienced during the pandemic years. During this slower market period, we have worked harder than ever to help our clients achieve their real estate goals. For our sellers, that meant going the extra mile with creative marketing strategies, professional staging advice, strategic pricing, and thinking outside the box to sell homes in a competitive landscape. We have held more open houses, created more compelling listing presentations, and spent extra time educating sellers about realistic market expectations. For our buyers, we have become master negotiators and creative contract writers. We have helped structure offers that allowed our clients to save money wherever possible, negotiated seller concessions for closing costs, requested repairs that mattered, and worked with our network of preferred lenders to secure the most competitive mortgage rates available in what has admittedly been a high-interest rate environment. Speaking of lenders, we have been working overtime with our mortgage partners to explore every avenue for our buyers. From buying down rates to finding loan programs with better terms, we have left no stone unturned when helping our clients navigate the financing landscape. But we believe everything changed on Aug. 22 when Federal Reserve Chair Jerome Powell signaled that current economic conditions warranted an adjustment to fiscal policy. That comment was music to our ears, and frankly, music to the ears of anyone involved in real estate. Now, we want to be clear about something important: the federal funds rate is not the same as mortgage rates. The FED rate controls overnight lending between banks, while mortgage rates are typically tied to longer-term instruments like 10-year Treasury bonds and reflect 15, 20, or 30-year mortgages. However, when the Fed signals a more accommodative stance, often a ripple affects the entire lending market. We expect interest rates to have started to come down noticeably by the time you read this newsletter. We are already seeing the early signs of what this means for our market. The enthusiasm is tangible. We are fielding more calls from potential buyers who have been sitting on the sidelines, waiting for rates to improve. Sellers who had been hesitant to list their homes are starting conversations about going on the market. The energy feels different and is more optimistic and forward-looking.
We are seeing increased activity at our open houses. Buyers are asking more detailed questions about neighborhoods, schools, and long-term value propositions. These people are not just tire-kickers; they are serious buyers who are ready to make moves when the conditions are right. We are genuinely excited about what lies ahead. This market correction has created incredible opportunities for buyers and sellers ready to act strategically. For buyers, inventory is still available without the frenzied bidding wars of a few years ago. Combined with improving interest rates, a sweet spot exists for making smart purchases. You can take your time, make thoughtful decisions, and negotiate terms that work in your favor. For sellers, the market is poised for renewed activity from buyers who have been waiting for better financing conditions. As rates improve, that pent-up demand is going to translate into more showings, more offers, and ultimately … more home sales.
Throughout this market cycle, whether it is slow, soft, or whatever else you want to call it, our commitment to our clients has never wavered. We have adapted our strategies, enhanced our services, and continued to deliver results even when the market was not cooperating. As we enter what we believe will be a much more active and optimistic phase, we are ready to help you capitalize on the opportunities ahead. Whether you have been thinking about selling, buying, or both, the timing is starting to align in ways we have not seen in a while. The market is shifting, enthusiasm is building, and we could not be more excited about what is coming next. Let’s make moves together!
–Dennis and Lisa Jones
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DLJonesHomes.com
Dennis & Lisa Jones
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