2022 Fourth Quarter Housing Market Trends: Featuring David Romero

It’s that lovely time in every real estate agent’s career when they experience a shifting market! Ask any Realtor and they would agree that the last 18 months were fruitfully busy, but some would argue that it left us unprepared for what was to come. We saw interest rates at an all-time low, Sellers were making out like bandits, while buyers, were left fatigued and frustrated. Regardless, the ones with the least complaints hands down went to us, Real Estate Agents. It was a hot market, and we enjoyed every second of it but as we all know, all good things must come to an end, right? Not so fast!
 
CENTURY 21 Award President & CEO, David Romero has a different perspective, and he encourages you to do the same. David doesn’t see this shifting market as a bad thing, he believes what we'll see is healthy and perfectly normal for our industry. Being in the business for over 30 years, he has seen it all. I sat down with David to further discuss the housing trends we can look forward to in the fourth quarter of 2022.
 
Isaiah: What should Buyers expect?
 
David: They should expect to be in the best position for success since 2020. With a great selection of homes and less competition, Buyers will see favorable conditions in the fourth quarter. Buyers didn’t have the negotiation power they do now. Until recently, the idea of buyers getting their closing costs paid by the seller was never an option. This quarter I believe that changes, setting up Buyers for a much better situation.
 
Isaiah: Is there anything you have to say to those who feel they missed the boat on interest rates?
 
David: The simple answer is that’s not true at all. It’s a trade-off because you won’t be in a market with as high of demand, plus the low-interest rates contributed to the soaring home prices we saw earlier. Another thing is that for the first time in years, we’re seeing more homebuyers opting in for adjustable-rate mortgages (ARM). By taking advantage of these adjustable-rate mortgages, Buyers are saving more money in the long run. There are still plenty of options. If you’re planning on being in your home long-term, you cannot go wrong by purchasing today.
 
Isaiah: What should Sellers expect?
 
David: Things look different for Sellers, and they should continue to expect this. It’s crucial to note that the housing market predictions for 2023 are going to be rough. If there’s a time to maximize your sale price, it will be in quarter four. After multiple years of double-digit appreciation, we are starting to see prices drop in certain areas.
 
Isaiah: Anything else you would like to share with Buyers and Sellers?
 
David: Owning a home is still the best way to build wealth even in turbulent times. Especially when you compare it to the stock market, there’s no better investment than owning property.
 
Isaiah: Let’s talk about Real Estate Agents. Anything you’ve noticed with this market shift?
 
David: Absolutely, agents including our own here at CENTURY 21 Award have had their best years in 2022. These types of markets always wash away the sub-par agents and companies, leaving more on the table for those who are prepared. This isn’t new, there’s plenty of business to be found, agents that are disciplined will continue to grow their business during this shift.
 
Isaiah: If you can leave C21 Award Agents with one last piece of advice, what would it be?
 
David: Expect a flight to quality from consumers this quarter. In a changing market, people tend to have a flight to quality, meaning they go to the brands and people they trust. This is a great opportunity for our company, the power of the CENTURY 21 brand has been around for 50-plus years. The people want someone they can trust, likely leading them to avoid these newer tech brokerages we’ve seen. Trust me, this isn’t our first go around, for some of our agents, this is the 5th or 6th cycle they’ve experienced.
 
There’s your housing market forecast for the 2022 fourth quarter! Both Buyers and Sellers have much to consider and as trusted real estate agents, you need to stay knowledgeable and be ready to jump in to help at any moment. Don’t shy away from this market, like David said, “There’s plenty of business to be found”.