The Compass CEO has reason to be bullish on the new housing market. He expects other prospective home buyers to return to the market in the next few months. This outlook comes on the heels of a tumultuous period. For one, constantly rising interest rates and overall economic uncertainty has caused many would-be buyers to sit on the sidelines.
In a recent interview, the Association’s CEO explained a number of reasons behind this expected surge in home buying activity. The subsequent decline in interest rates made mortgages more affordable, further spurring buyers who had been waiting to get back into the market. An increasing supply of homes for sale gives future buyers greater choice. This broader variety fuels more excitement and enthusiasm within the homebuying audience.
Similarly, industry experts within the real estate sector have observed that consumer confidence seems to be coming back, slowly but surely. The short-term volatility in the housing market can’t take away from the fact that more people are understanding the long-term benefits of being a homeowner. The CEO emphasized that as people become more comfortable with their financial situations, they are likely to take decisive steps toward purchasing homes.
It’s first-time buyers, the Compass CEO said, that will be the driving force behind this expected resurgence. Their engagement will be absolutely critical. With various government programs and incentives aimed at assisting first-time home buyers, many are finding it increasingly feasible to enter the market. That combination of favorable conditions and supportive measures would seem to spell a more active buying season.
Furthermore, the CEO indicated that regions with robust job growth and economic stability are particularly poised for increased buyer activity. When jobs increase and unemployment decreases, workers feel more secure about their circumstances. This security incentivizes them to put even more money into the real estate market.
Technology is changing how home buyers use information. Virtual options are virtual in-person introductions closely coordinated with local real estate markets — improving the convenience and accessibility of the process for many buyers. From virtual property tours to online conversations with real estate professionals, the new normal has transformed how we buy homes. This change has created a new level of competitive pressure and dynamism to the market.