It’s almost autumn; it’s a time that brings beauty and the anticipation of change. Locally, it’s also a season that usually sees a fairly strong real estate market, at least in September & October. Beyond the change in season, there are a few other big changes this year that may or may not have an impact on the market. Only time will tell, but let’s take a look at what’s ahead.
Did you know that a major change was made to the structure of the national real estate industry in August of this year? One of the most significant changes is that every buyer represented by an NAR-affiliated agent is now required to sign a Buyer Representation Agreement formalizing the relationship between the buyer and broker before touring properties. There are various types of agreements to meet the needs of consumers. In addition, if you are visiting an open house that is hosted by an NAR-affiliated agent, you will now be asked to sign either an Open House Non-Agency Disclosure and Sign In form, or a buyer representation agreement, prior to touring the home. The Non-Agency disclosure will limit what an agent can discuss with you. Some of the forms will create a contract between the buyer and the broker, obligating the buyer to pay the broker’s professional fee. I’ve always been a strong believer in reading first and making sure that you fully understand what you are signing. This philosophy applies now, more than ever.
Interest rates soared in 2022, and there has been hope that 2024 would bring some relief from those rates. Interest rates were expected to be lowered earlier in the year, but that did not happen. Based on recent economic indicators, there is a strong indication that rates will likely drop in September. Only time will tell (this is a print article, written well in advance). A significant drop would likely spur the market, as many more buyers would be able to afford a home.
Another significant event that will likely impact the market this fall is the presidential election. Please note that the impact is to the market, and not necessarily to property values. Historically, there has been no significant correlation between the outcome of a presidential election and home values. My career has spanned 8 presidential elections. I can tell you that prior to every election, many buyers put their search on hold sometime in September or October, stating that they have decided to wait until after the election to buy a home. I’ve also seen buyers take advantage of that same market – getting into their dream home, with a lot less competition. Great opportunity can often be found by not following the crowd.
Every home buying or selling experience is unique. If the thought of evaluating your options has you feeling overwhelmed, please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com for a custom analysis of your options. Even if you’re not planning to move, I’m happy to help by providing you with relevant data, enabling you to make a well informed decision. It’s never too early to start planning for success.ns@Compass.com to discuss your options. It’s never too early to start planning for success.
