Despite a continued fast pace in residential real estate (a typical home in July went under contract in just 14 days), home sales fell nearly 6 percent in July and are down nearly 20 percent year-over-year, largely led by first-time homebuyers opting to sideline purchases in an increasingly challenging rate environment.
While many sellers refuse to reduce listing prices, affordability has taken a major hit, with the average 30-year interest rate climbing from 2.68 percent in December 2021 to 5.41 percent in July. And amid this “weird” and dislocated market, builder confidence fell for the eighth straight month in August.
But, as every tenured advisor knows, moments of distress also bring opportunity.
One strategy worth considering right now is proactive outreach to your clients who are realtors, mortgage bankers, builders, architects, real estate investors and developers, and clients in the process of trying to buy or sell a home.
As Russell Investment’s Value of an Advisor Study reiterates each year, behavioral coaching and providing a customized client experience and planning are two of the largest value-add offerings an advisor can provide. And proactively reaching out to walk with and plan for the journey is a prime opportunity to deliver both for these clients.
And, if that fails, perhaps a touch of humor and a little optimism will help. Because in this crazy market, what do real estate agents still have to be thankful for? Lots!
Christy Charise, Founder & CEO of Strategic Advisor