Making sense of the COVID months – RISMedia

This month’s National Association of REALTORS® (NAR) Potential Brokers Roundtable explains how brokers can plan for the future amid COVID.

Chris Kelly, President and CEO, Ebby Halliday Companies, North Texas; National Association of REALTORS® Broker Liaison Officer: Real estate professionals are far from the only ones trying to make sense of the COVID months. My question in terms of planning now is how can we try to predict what’s to come – going back to the metrics and trends that marked the end of 2019 or predicting activities in the coming months based on levels? that we reached during COVID. time?

Mike Frazier, President and CEO, ReeceNichols Real Estate, Kansas City, Kansas: I don’t think it’s possible to look back as 2019 started around a time when stocks were on the rise and prices were starting to correct. But it was all on his ear when COVID hit, and there were more buyers than homes to buy. It used to be that you put your house up for sale and had three or four months to find a new property. But the new normal is you buy first, at almost any price, then list – and I don’t see that changing anytime soon.

Rosey Koberlein, President, Long Realty, Tucson, Arizona: Based on our check of the seasonality factors before and after COVID, we believe this year will be very similar to 2021. The driving factors are the same: short stocks, high demand, and low rates – and we don’t see them. change significantly in the coming months. We’re comfortable predicting that business won’t break the charts this year, but neither will it.

Jason Waugh, President and CEO, Berkshire Hathaway HomeServices Northwest Properties, Portland, Oregon: I think what we’re seeing now are normal seasonal conditions, and we’re hoping for somewhat sluggish but healthy conditions throughout this year.

Leonard Steinberg, Chief Evangelist, Compass Real Estate, New York, New York: The urge to move is still extremely strong and stockouts always favor competition. In the high-end market, people are cashing in on bonuses to buy a second or third home – and we are in the midst of the biggest wealth transfer of our lives, with more and more parents offering money to their families. children during their lifetime, often for the specific purpose of buying a house.

CK: Why are stocks so stubbornly tight?

RK: On the one hand, rental rates have increased by around 40% over the past four years, so industrial buyers who have reclaimed properties are not selling.

CK: What about new constructions?

RK: In our region, new constructions cannot rise from the ground quickly enough. But it can take years between acquiring the land by the developer and going vertical.

JW: Developers still face supply chain issues, labor shortages, and rising costs, but I think builders’ confidence is at the highest level we’ve seen in quite some time. .

MF: And there’s a lot of inventory lying around there – people who want to move out but waited for the pandemic, or were afraid they couldn’t find the right home to buy.

CK: We seem to hear a lot of confidence as we come out of the COVID months.

JW: We are budgeting for an increase in units and a slow but healthy appreciation. The job market is strong. Interest rates will remain at historically low levels even if they start to rise. As most agree, a slow return to standardization has its advantages.

RK: The beauty of this industry is that life goes on. People get married, have babies, die. There is always a need to buy and sell.

LS: The challenges are different in different parts of the country, but all over the world brokers tend to say, “We’re going to have a year as good or better than the year before.”

The Power Broker round table is brought to you by the National Association of REAL ESTATE AGENTS® (NAR) and Chris Kelly, NAR Broker Liaison Officer. Keep an eye out for this column every month, where we touch on broker issues, concerns and milestones.

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