The question every agent gets asked in a conversation the minute they mention they’re in real estate, is “How’s the market”? which is often followed by “I bet you’re busy” or “Are you busy”?
There is rarely an easy answer to this question. Real estate ebbs and flows constantly. Perceived factors that affect it range from interest rates to the time of year to economic circumstances. Those are all cyclical circumstances and shouldn’t carry the heaviest weight on decisions you make for your life goals and dreams.
Real estate must be viewed in the long term and with the perception that it is slow to react. Rarely is real estate like the stock market where it increases or decreases at an alarming rate. When those rare situations occur, the market will correct itself over time to normalcy. Sometimes that doesn’t feel like a normal adjustment, but it is. Historically, values will gain slowly over time with rare occasions where it changes drastically. The same is true regarding interest rates and the overall economy. The challenge is to remember these cycles occur at a regular pace and should not bear more importance than what is occurring in your own life at any given point.
The question to be asked more frequently is “Is it the right time for me to buy or sell a home?” The answer lies in the life changes, needs, and goals of each individual. Use those circumstances to lay the foundation for analyzing your journey and if it’s time to buy or sell. Then consult with a professional who is there to help guide you through good decisions and not to make decisions for you.
Life circumstances may include a job change, relocation, or needing a larger or smaller home, to list a few. Look at those circumstances and ask yourself where you want to be, not in six months, but three to five years. Because real estate is slow to react, take time to analyze what your goals & dreams are for the future, not what the interest rate is, if it’s the right or wrong time in the scope of circumstances larger than you, but what fits your life right now.
Play the “perfect scenario” out in your mind and ask what the backup plan is if that doesn’t pan out as planned. What if your home sells quicker than planned? What if it sells slower than planned?
What if the home you find has multiple offers? What if the home you find is your first and not your forever home? What are the long-term decisions to be factored in?
What does slow to react mean? It means that when large circumstances like the economy or interest rates change the sales and human behaviors don’t change as quickly, even when the indicators may have been showing the change was looming ahead.
Human nature is to first deny or to hope for things to go back to the way they were, therefore the tendency is to wait for that to occur. When it doesn’t, then the mindset must change, adjust, and accept before action takes place. This takes time and therefore the real estate market doesn’t change immediately. It’s slow to react.
Take a minute and look at your life plan. What does it look like for you in the next three to five years? What options are available to you? What makes sense for you, and your goals and dreams? Remember, real estate is slow to react. Life passes by very quickly. Don’t miss out on the positives because of fear or uncontrollable circumstances. Use a professional to help you work through your choices and guide you along the path to help reach your personal goals and dreams.
Deanne Nelson is the Broker Owner of New Key Realty in Nashville TN. Her passion for real estate started 17 years ago when she decided to pursue it as her career. She carries a license in both TN & FL. Deanne fell in love with Tennessee in the early 90s, moved here, and is a graduate of Belmont University. Deanne currently serves on various committees & is chair of the Membership Committee at Greater Nashville Realtors. She intends to give back to the community by being a positive influence & impact within the real estate industry for the consumer and other agents.
