The last several months, real estate in the United States has been red hot. Low supply of homes, mortgage rates that continue to remain low and a large number of Americans making post-pandemic decisions to move to bigger homes or homes in different geographic areas have all held pave the way for a hot sellers’ market. However, many know that this is not the first time the real estate market exploded into situations of multiple offers, above asking price, with real estate professionals just trying to keep up. So, it should be no surprise to many seasoned real estate professionals, that there will be a change in the market at some point.
In an article published by Forbes, a theory about the real estate market phases is detailed. Real Estate expert Glenn R. Mueller, PhD believes the four phases of the real estate market are Recovery, Expansion, Hyper Supply and Recession. And, according to Sam Mehrbod PhD, author of the Forbes article, U.S. real estate markets are currently in phase two. This phase is still a sellers’ market, but heading toward the peak. On the horizon, potentially, is the third phase. This phase is a buyers’ market defined as Hyper Supply and buyers become a little more scarce and panic selling can begin.
Mehrbod has suggestions for real estate professionals to help them prepare for the next phase, building a net work to ensure success in any phase of the real estate market. Its imperative for real estate professionals to continue to build and stay relevant within their networks. He makes suggestions such as regularly posting relevant and educational content on social media, beginning to build buyer lead lists for future markets, and utilizing marketing funds consistently to allow long term marketing plans. By staying on top of networking and marketing and anticipating what might be coming up next, real estate professionals can be prepared to ride the next wave.
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