Industry Relations Understanding both sides of the housing market
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Dec 4, 2024 Recent developments in the housing market are front and center, with sharp insights on the DOJ's influence and its push for transparency in buyer agreements. The hosts challenge traditional views, debating whether market health hinges more on transaction volumes than home prices. Pressing issues like declining affordability shape the landscape, while brokers navigate increasing regulatory scrutiny. Future predictions speculate on potential changes that could transform real estate practices, emphasizing the necessity for consumer awareness in this evolving industry.
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Housing Market Strength Redefined
- The housing market's strength is often solely defined by price, neglecting transaction volume.
- This price-centric view can be misleading, as low volume with high prices indicates market weakness, not strength.
Declining Sales Volume
- Defining the housing market by sales volume (price x transactions) reveals a weakening trend.
- Despite rising prices, declining transactions mean lower overall sales volume and shrinking commissions since 2021.
Reframing the Housing Market Narrative
- The narrative of a strong housing market is misleading, as it focuses solely on rising prices.
- Reframing the narrative to acknowledge weakening sales volume due to affordability issues offers a more accurate market assessment.