For Realtors, the ability to quickly adjust to market fluctuations, client preferences and industry regulations is essential. From shifts in interest rates to changing buyer-agent agreements, recent changes in the housing market and broader economic landscape emphasize the importance of staying flexible.
Flexibility in a changing market
Realtors must cater to a diverse range of clients, from first-time homebuyers to long-term investors, each of whom responds differently to industry changes.
With the Federal Reserve policymakers announcing a half-point interest rate cut to 4.75-5% in September, the first cut in over four years, market dynamics are shifting. This cut is likely to increase home affordability and drive demand in the real estate market. As a result, Realtors should expect an influx of buyers who may have been priced out before and prepare to guide them through the purchase process.
Lower interest rates will increase competition among buyers, emphasizing the need for Realtors to remain agile in tailoring client strategies. Whether it’s navigating bidding wars, negotiating for concessions or assisting clients in pre-approval processes, being ready to act quickly and shift focus is critical for maximizing opportunities.
The election brings additional uncertainty to the U.S. housing market and the financial landscape. For Realtors, it’s important to remain aware of any proposed changes in housing policies or tax incentives that could affect the market.
During times of volatility, maintaining close contact with clients, offering timely market updates and advising on optimal buying or selling times will position Realtors as essential partners in helping clients make informed decisions.
Impact of regulatory changes
To increase transparency, the NAR settlement in August introduced new rules requiring Realtors to have written agreements with buyers before touring properties listed through their MLS.
Regulatory changes in the housing industry mean Realtors must adapt their practices and educate clients about new regulations. While this creates a layer of complexity, Realtors can use this opportunity to fine-tune their communication skills. In fact, new data from the Essential Soft Skills for US Real Estate Agents report ranks communication as the most valued soft skill for Realtors. Effective communication will ensure smoother client interactions and allow clients to make fully informed decisions.
Adapting to succeed
In order for Realtors to stay informed, manage their business efficiently and deliver high-quality service to clients, they should leverage tools and services.
Collaborating with other Realtors through local real estate groups, online forums or networking events are good opportunities to generate new ideas. These also provide valuable support for navigating changing market conditions and effectively adjusting strategies.
Adaptability to market and regulatory changes is crucial for Realtors, emphasized by recent industry changes such as the Federal Reserve’s interest rate cut and the new NAR requirements. By remaining flexible, utilizing available resources, connecting with peers and maintaining open communication with clients, real estate agents can adapt to an ever-changing housing market with confidence.
Chris Heller is president of real estate tech company OJO and co-founder of Agent Advice. He previously was CEO at Keller Williams Realty International.