What’s Changing In The Real Estate Market?

By Linda Welsh

Specialize in representing savvy Buyers and Sellers for residential, second home, vacation properties, lake and hill country properties, new and existing homes, land and lots. Relocation services include area, community and neighborhood expertise and helping the entire family to find the perfect home to meet their needs and wish list.

Many of you have questions, especially with all the news and the recent National Association of Realtors and Department of Justice lawsuit.

First off, you’re probably wondering how this will affect you. Over the past year or two, we’ve seen a reduction in prices, which is partly a correction from the crazy market surge we experienced from 2020 to 2022, likely influenced by COVID-19. That period saw inflated prices and now, as inflation has gotten out of hand, interest rates have increased. Higher interest rates mean fewer buyers can afford to buy, leading to a reduction in prices to meet the decreased demand.

We do expect some adjustments in interest rates by September, possibly again at the end of the year. These changes should significantly impact the market, likely bringing more buyers back in. More buyers mean more competition, and more sellers might jump in as well, knowing they’ll have a clearer path to their next home. We expect a more balanced market, not as extreme as 2020-2022, but with increased inventory across the board, including new homes, resales, and investment properties.

Now, let’s talk about the DOJ lawsuit and what it means for sellers. With new forms and a perceived increase in options, it’s important to note that commissions have always been negotiable, though it hasn’t always felt that way to buyers and sellers. Think of it like choosing a doctor for surgery—you want someone experienced and well-respected, not just anyone offering the lowest rate. Real estate is similar; the perceived set rates are being clarified, emphasizing that commissions are indeed negotiable.

With the changes, the offer of compensation to a buyer’s agent will no longer be visible on listings. Buyers will now need to contact the listing agent to discuss representation fees. This doesn’t mean sellers won’t offer commissions, but it highlights the need for clear communication and possibly new paperwork. If a buyer can’t or won’t pay their agent, the seller or listing agent might still cover the commission, just not visibly on the MLS.

These changes will take effect around August 13-17, so it’s crucial to be prepared. If you’re considering selling your home, there are several steps you can take now to get ready. Understand the market trends, recent sales in your neighborhood, and what pricing might look like for your property.

We’re here to help you go through this new season in real estate. Please give us a call if you have any questions or need information on other properties in your area.