S2E153 My Bold Predictions: The Surprising News for 2024
Dec 12, 2023
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In this podcast, Brian Buffini discusses his bold predictions for the real estate industry in 2024 with NAR Chief Economist Dr. Lawrence Yun. They cover topics such as the impact of mortgage rates on buying houses, the state of home sales and prices, analysis of GDP growth and interest rates, predictions for decreasing mortgage rates, a lawsuit against real estate agents, and the top 10 reasons people are moving in 2024.
Interest rates are predicted to drop in the coming years, creating a favorable environment for homebuyers and stimulating buyer demand.
There is a significant pent-up desire for sellers to move, driven by various factors including the need for more space and favorable interest rates.
Real estate professionals need to be well-informed about market conditions, provide accurate information to clients, and cultivate relationships to achieve success in the market.
Deep dives
Interest Rates are Projected to Drop
The podcast predicts that interest rates will drop in the coming years, with the Federal Reserve expected to cut rates three to four times. The bond market is already showing signs of lower rates, with mortgage rates projected to reach levels below 7% and possibly even 6.5% in the spring. This is anticipated to create a favorable environment for homebuyers and stimulate buyer demand.
Pent-Up Desire for Sellers to Move
There is a significant pent-up desire for sellers to move, driven by various factors including the desire to be closer to family, the need for a bigger space, and love for their current interest rate, but not their house. Additionally, the podcast highlights the increased demand for vacation homes and the growing trend of downsizing homes while leveraging equity to help children or grandchildren buy homes. This pent-up desire is expected to result in more sellers entering the market in the second half of 2024.
Positive Outlook for a Strong Finish in 2024
Despite some challenging market conditions in 2023, the podcast projects a strong finish to 2024. With interest rates dropping and an increase in seller motivation, the market is expected to pick up pace and witness a surge of activity in the third and fourth quarters. The podcast emphasizes the need to prepare for this anticipated surge of buyers and sellers and to cultivate relationships with potential clients ahead of time.
Market Insights and the Importance of Being Informed
The podcast highlights the importance of being well-informed about market conditions and trends, especially amidst the contradictory news and sensational headlines that can create confusion. It encourages real estate professionals to provide accurate and reliable information to their clients, helping them navigate through the noise and make informed decisions. Staying updated on the latest data and understanding the underlying motivations of buyers and sellers will be key to achieving success in the market.
The Do It Now Campaign and Targeted Marketing
The podcast introduces the 'Do It Now' campaign, a comprehensive marketing system designed to help real estate professionals target specific types of sellers. By categorizing sellers into various motivations, such as moving closer to family, upgrading neighborhoods, or buying vacation homes, the campaign provides tailored marketing materials, including mailers, e-reports, social media infographics, and messaging. The aim is to cultivate relationships, set up opportunities for follow-up calls, and position agents as trusted advisors in the market.
Brian Buffini has forecast real estate trends and developments with incredible accuracy for many years. In his 16th annual Bold Predictions show, he interviews NAR Chief Economist Dr. Lawrence Yun for a market update. He also predicts what’s next for the industry and sets out the action steps you must take to achieve phenomenal success in 2024.
YOU WILL LEARN:
The real scoop on the economy and how it affects real estate.
“Sales are definitely down, but home prices are still holding on at near record-high levels.” –Dr. Yun
“The Federal Reserve is probably going to cut interest rates three or four times. The bond market is anticipating that move and has pivoted already.” –Dr. Yun
“There's a significant pent-up desire for sellers to move.” –Brian Buffini
“90% of consumers want to work with a trusted agent.” –Dr. Yun
“Reach out to your past clients. They're all in a happy mood. They have built sizeable wealth and they may be associating that happiness with you.” –Dr. Yun
“It's not hard to predict the future when you study the past.” –Brian Buffini
“Rates are going to drop, no question about it.” –Brian Buffini
“The demand to buy has never been higher. And people want to get in the game.” –Brian Buffini
“The time to prepare is now.” –Brian Buffini
“It's a very fundamental market. It requires an elevation of skill set and it requires the determination of mindset.” –Brian Buffini
