Why Buyers Aren't Reacting to Lower Rates
Although mortgage interest rates were headed south two weeks ago, we're still not sure if this will be sufficient incentive to move buyers off the sidelines and into Open Houses. We're also unable to say if rates will continue to creep up as witnessed last week.
The Mortgage Bankers Association (MBA) has stated that there hasn't been a recent surge in new purchase applications. While some analysts think that buyers may be hoping for a further drop in rates later this year, others have stated that the beginning of the school year in just a few weeks' time has deterred families.
Another reason most agents haven't seen a surge in new purchase activity: affordability hasn't improved that much. A decline in mortgage rates from 6.75% to 6.5% only raises the percentage of renters who can afford a median priced home from 28.9% to 30%, and this doesn't take into account their ability to qualify for the lowest rates.1
The Recession That Isn't
Did you know that almost 60% of Americans believe that we're in a recession? Most respondents to a recent survey think that the non-existent recession started over a year ago.
While higher interest rates, grocery prices and inflation have made budgeting difficult for many of us, the U.S. economy has remained remarkably strong even amid persistent inflation. However, many consumers feel a disconnect between the current economy and how their wallets are suffering and interpret this as a recession.
While some consumers see their overall debt levels rising, mainly due to using credit cards to cover monthly expenses, homeowners have seen their overall wealth increase over the past four years. Rising property prices have contributed to some amazing equity growth. Furthermore, homeowners don't have to worry about rising rent prices. These could be valuable talking points when a new prospect contacts you.2
House Hunters Trade Safety for Affordability
Yes, you read that right. Over 17% of current house hunters would trade their safety for an affordable home.
A February 2024 survey asked homeowners and renters if they were willing to give up one or more amenities in exchange for an affordable home. While easy access to healthcare services, restaurants, bars and coffee shops topped the list of amenities that this year's house hunters are willing to skip, nearly one in five were willing to sacrifice their physical safety.
Nearly one in four (23.7%) Gen Z respondents aged 21 to 26 said they are willing to live somewhere less safe for the right price, compared to 18.1% of Millennials and 17.5% of Gen Xers. Only 5.5% of Boomers said they would trade their safety for affordability.
While some home buyers don't mind living with some risk, about the same number of respondents wanted to move to a safer area. Overall, safety concerns were the fourth-most cited reason for wanting to move, behind wanting more space, a lower cost of living and lower home prices—and on the same level as wanting to live near family.3
Tips for Olympic-Flavored Marketing
Every time the Olympic Games arrive on our TV screens, many businesses incorporate this event into their own marketing plans. If you're looking for ways to create one or two winning social media posts, here are a few ideas.
Support the local heroes. If your town or city is the home of one or more Olympic contenders, congratulate him or her with a suitable post. You can identify them easily by downloading the United States Olympic Team Roster (this article contains a link).
Support inclusion. Remember our Paralympics Team members and feature them in your social media. While the Paralympics began in 1960, support hasn't always been equal to that for the Olympic participants.
Look for humorous tie-ins. While torch carrier Snoop Dogg takes first prize here, Turkish sport shooter and silver medalist Yusuf Dikeç has also been the star of countless memes. Of course, you can always feature a photo of your pet (or yourself) competing in a real or imaginary Olympic event.4
Selling Strategies in the Digital Era
By concentrating on building relationships with existing clients and creating memorable client experiences, this will encourage repeat and referral business.
If this sounds like a change that could improve your outlook, here are some strategies to consider.
Stay in touch with past clients through personalized follow-ups, newsletters, and client appreciation events.
Develop your own unique processes for client interactions, marketing, and transaction management. This makes it easier for you to focus on consistency and how you present your services.
Implement newer digital analytics tools to track key performance indicators (KPIs) such as lead conversion rates, client acquisition costs, and transaction times. This data will help you refine your strategies and improve performance.5
Sources: 1realestatenews.com, 2cnbc.com, 3redfin.com, 4blog.hubspot.com, 5realestateagentmagazine.com
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