With the market inching closer and closer to normalcy, it's time to take a step back and analyze the landscape, and the segments of the market that will provide the best opportunities for your business going forward.
Several things have happened in the last few months that have the potential to affect the shape of real estate sales nationwide in the short term. Nearly 4% of all mortgages are currently in forbearance. That may not seem like a substantial number, but it equates to a few million homeowners across the country.
When pushing their payments back, sellers are essentially deferring equity in their homes. This may create a situation for many would-be sellers that pushes their plans back and keep them in the home another few years, driving inventory down. With less inventory on the market and the possibility of unwillingness to sell for many people, another outlet to satisfy the demand create by all-time low rates may present itself.
The U.S. was at a supply deficit of four million new homes coming in to 2020. New construction demand was close to a historical high before the pandemic stalled the market. Now, with things getting back to normal and builders looking to boost profits and, in many cases, appease shareholders, look for serious deals to present themselves.
Quarterly earnings are the lifeblood of publicly traded builders. And after the pandemic decimated much of Q1 and Q2, they'll be looking to make up the losses any way they can.
This should present the best opportunity for potential buyers going forward. And for real estate pros this is a perfect opportunity to bring value and insight to your database. Low rates and builders ready to make deals is a perfect storm that your prospects should know about.
Become the expert and build around the bounce back as the market regains its footing and new builds lead the way.
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