Here’s something for Realtors to realize. As interest rates increase further past last year’s sub-4% levels, you are (temporarily) in a realtors’ market. Once rates cross the 5% and 5.5% thresholds, it is a different story.
“Every realtor with long-term buyer or seller prospects, particularly if it is first time buyers, needs to take advantage of interest rate conditions,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company, a regional real estate brokerage with offices in DC and Baltimore. “This is the time you follow-up rigorously to educate your buyers on the current rate increases and what is pending. This also holds true for your sellers, many, at least in DC, have substantial equity to cash in while it is still less expensive for buyers to finance their purchase.”
Here’s proof of the urgency that this move up from sub-4% levels creates. Rates on a 30 year are around 4.55% a week ago, up from 4.02% a year ago. The rates so far haven’t lessened buyer demand – if anything it has increased slightly. Data through April shows that first time buyers are still making up 46% of new mortgage loans, up from 43% last year.”
The morale of the story is – reach out to your first time buyers, let your sphere know what is going on, and educate any pending sellers you are chasing that, as always, NOW is the time to sell.
Realtors seeking new leads and prospects should check out UrbanLand Company’s Agent Leads Generation Program. Here’s a video introduction.
Baltimore or DC-based agents are encouraged to reach out about agent opportunities at UrbanLand Company. The firm is actively recruiting. Call 202.759.4114 or email Info@UrbanLandCompany.com for more information.