Across the country, home prices have continued to surge following the recent recession. Overall, the housing market has improved, with fewer foreclosed houses, rising inventory and affordable mortgage rates. But, prices have climbed as well, and some people are concerned this could limit buyer and seller activity.
However, this may not be the case. In fact, there is potential that the nation's real estate agents could start to see an increase in business, in part due to higher home prices. Either way, there are plenty of reasons why professionals should not be worried that current conditions could negatively affect the industry.
Prices can drive economic activity
In some cases, high home prices mean that buyers cannot afford to move into a new property. If this occurs, it will lead to fewer clients for real estate agents and a lower number of sales. But, Lou Barnes, a Colorado-based mortgage broker and contributor to Inman News, wrote in an article that high prices can also be a good thing.
Barnes explained that the housing market is still affordable overall. For example, mortgage rates remain near historic lows, personal income and spending have ticked up in the past couple of months. Most importantly, though, he points to inflation as a reason for both optimism and concern. As inflation takes place across the country, it could be a bad thing for the economy. On the other hand, if personal income climbs at a similar rate, it will remain relatively easy for homebuyers to afford properties. So, as long as prices, inflation and income climb together, there is little reason for agents to be concerned.
In order to stay on top of the current housing market, real estate professionals need access to a wide range of information. With CRS Data, this is a simple task. Access mortgage records, property data and more right online, without a trip to the local courthouse.
Help clients find the right homes
As home prices climb, many clients may become worried that homeownership isn't right for them. Therefore, it is up to their real estate agents to offer useful tips to balance these expenses and ensure that buying a house is smart financial decision.
According to The Wall Street Journal, homebuyers should be looking to purchase a home that only requires roughly 30 percent of their monthly income. Any more than this can put affordability in jeopardy. In addition, agents should advise their clients about closing costs, repair bills and moving expenses, as well as any other pricey considerations, before they make the decision to buy. All of these factors can help clients determine a price range for their house.
Above all else, real estate agents should work with their clients. A close relationship can make it easier to find the right purchase, and it will show homebuyers that their agents have their best interests in mind. This way, they'll know what they need to know when navigating a relatively expensive housing market.