There are most definitely times when you need to take a step back before you take a step forward.
You pause to regain perspective and to choose your path. It is often better to take the step back by choice, rather than being forced to as you lose your footing at a precipice when your path choices might be limited.
As real estate and mortgage lending professionals, it is easy to forget that we, in very simple terms, facilitate transactions for a living. We have very little control over the influences on the home buying market or the number of transactions the market may bear. For real estate professionals, the transactions result in commissions. For mortgage lenders, transactions produce a similar result.
No or limited home sales mean no or limited commissions. That’s not where we are today — but it’s also not where anyone wants to go.
While it is easy to get pushed down the road in today’s seller’s market, there’s one significant reason to pause and maybe take that step back. Today, more and more homeowners, those potential sellers — the beginning of those transactions we facilitate — seem to find more and more reasons to stay put rather than sell and profit from the market.
Potential sellers in a seller’s market taking pause is not a good thing for anyone. There may not be that “trade up” progression through homes that sustained inventory, inspired builders, and kept both real estate and mortgage lending professionals busy.
We need to step back and take a look at why this is happening. In residential real estate, many producers (home sellers) then become consumers. Once you sell, you need to buy or rent. Neither needing to buy nor having to rent is a particularly good situation to be in at this point in time. Both are costly and uncomfortable roads to travel for the consumer. That decision to settle in will likely impact inventory and the number of transactions we may see in the near future. Taking a look at that possibility might make navigating the housing market that much easier for all of us.