The Double Comma Club
How to switch from transactional solutions to individualized solutions.
I have had many conversations this week with you, my referral partners, and your clients. These are challenging times. This is a new normal.. one we are not comfortable in. One that is fairly based in fear. But this is also the time our clients who are striving to maintain stability, striving to provide shelter for their family, or looking for opportunities to protect and grow their financial future against the volatility of the stock market. This is not the time to fall back. This is the time to stand tall in strength and confidence knowing you can help them navigate their real estate journey.Individual SolutionsEach client has their own set of risk factors... job security, liquidity, risk tolerance, financial acuteness. There is NO one solution. We must listen intently and offer individualized solutions. We can not be transactional in nature.The Market Will Maintain StrengthReal estate is hyper-local, we all know that. Each area having its own median sales price. Those homes that are at or below the median are still seeing strong activity through this weekend. In the seven days following last weekend, 1669 homes came on the market and 1948 homes went under contract. 40% of all homes are sold between March and May. Yes, the market is being affected by the incredible distress in our environment, but it is not stopping. Homebuilding will slow down. This is a product of supplies, workforce, and funding. This will impact supply, a supply that is already distressed. Generationally, we have an extremely strong five years coming up with the largest number of millennials turning 33 (the average home-buying age) in front of us.Demand will remain strong.Interest rates will go lower.Every time we have a recession, we have lowered interest rates. Rates dropped from 6 to 4.875 percent during the last recession; 7.375 to 6.75 percent in 2001 and 11 to 8.75 percent in 1991. Home prices will continue to rise. During times of decreased interest rates and supply, demand pushes appreciation. Home prices have risen five out of the last seven recessions. They will rise in this one. What if we shut down the country? It will put a pause on home buying. But remember, we had an extremely strong housing market entering into this time. It will be housing that helps pull us out. And not to make light of the subject, but I'm thinking they might be ready to not only get out of their house but move entirely!Your SolutionIn the meantime, there are buyers who are financially able to purchase not only primary homes but investments. There are sellers who have either bought already or need to consolidate. There are investors who will want to sell their investments during this time to take their profits out from the last eight years of generous appreciation and rental income. I am also doing a large number of cash-out refinances to increase liquidity during this time of unsettledness. Even when rates have increased momentarily, we can improve a client's overall debt structure and refinance in six months to drop the rate.This is the time to stay informed, stay positive, and align yourself with a team that can assess each client's specific fears, stability, opportunity, and action. This is not the time to feed into the fear but to be their champion.Break TeamThese are challenging times. This is a new normal.. one we are not comfortable in. This is not the time to fall back. This is the time to stand tall in strength and confidence knowing you can help them navigate their real estate journey.Nicole RuethThe Rueth Team of Fairway Independent Mortgage Corporation 750 W Hampden Avenue, Suite 500 Englewood, CO 80110 303-214-6393 www.TheRuethTeam.com