The rising tide lifts all ships, but rising interest rates may sink your sales for Real Estate in 2023. After a few stellar years of record sales and some of the lowest mortgage interest rates recorded, the pendulum is beginning to swing in a different direction. Home sellers are pulling back and waiting for a sign that the market is levelling off. Some home buyers are choosing to rent before they dive back into the water. But with all that is going on, there will always be willing participants to keep Real Estate alive. The question is, how do you capture the attention of the remaining few and how do you spark an interest in those standing on the sidelines? A review of your marketing plan is crucial. Keep potential buyers interested by using 3D tours and floor plans to attract more qualified buyers and give a reason for the seller to choose you as their selling agent.
Rising interest rates are affecting Real Estate sales
The past couple of years have seen a lot of FOMO (fear of missing out). Houses were being snatched up across the nation regardless of the asking price. Low-interest rates made getting a mortgage attractive and affordable. But Real Estate in 2023 is headed in a different direction. Fewer sellers, wary buyers, and less inventory are the effects of rising interest rates. According to the National Association of REALTORS (NAR), residential sales are down 34% year over year in December 2022. Consumers who still want to sell their homes need agents to help them get top dollar in a waning market. Access to floor plans and 3D tours will help get the job done.
House prices are going up and down
Rising interest rates are affecting Real Estate in 2023 in several ways. Limited supply and steady demand are helping keep prices high in some areas, while financing costs create difficulties for consumers to purchase the floor plan of their dreams. CREA is forecasting the average selling price to decline nationwide in 2023. This means competition will begin to edge up in the residential housing market. Marketing properties using floor plans that observe measurement standards will help consumers compare value. Not only are interactive 3D tours and online access driving sales, but they will continue to be the most important tool for both buyers and sellers. Areas where prices are declining need that extra boost to attract the highest bidder. Access to information helps mortgage appraisers comply with industry requirements and speed up the approval process.
Rising interest rates and default mortgages
The downside to rising interest rates is starting to show. Increasing consumer debt and defaulting mortgage payments may throw a loop into Real Estate in 2023. More homeowners are defaulting on their mortgage payments. This may mean that they will need to either increase their income or sell their homes. Regardless of the reason, millions of homes will be listed and sold this year. As Real Estate agents compete for business, they need to go the extra mile to win listings and make the sale. Technology trends like virtual tours will remain one of the most important marketing tools available. Not only do interactive floor plans and 3D tours help get homes sold faster, but they keep potential buyers engaged with the property. With unmanageable mortgage payments, there are many sellers wanting to unload their properties in a hurry.
The future of Real Estate in 2023
Mortgage interest rates have almost doubled since the beginning of 2022. That means mortgage payments have increased by nearly 50%. Reports indicate that mortgage applications are down substantially by approximately 40%. However, this does not mean Real Estate in 2023 comes to a halt. There are consumers sitting on the sidelines waiting for the right home. Some sold their homes when the market peaked and others may have reasons to sell now. Show your professionalism by providing ways to compare current market value by offering accurate measurements with every listing. The key to consumer confidence in any market is an honest depiction of the property. Your future for Real Estate in 2023 is bright when marketing your listings with an iGUIDE.
Fifty years ago, interest rates were hovering around the 6% mark and in the early 80’s they reached about 19%. Homes were still being listed and sold. But the difference between real estate in 2023 and a half-century ago is the use of technology to connect with the consumer. Keeping your ship afloat is a whole lot easier today when using iGUIDE.