From the desk of 2021 RRC President Alex Milshteyn, CRS
The effects of the COVID-19 pandemic have stretched far beyond the public health sphere, as many of our members have experienced firsthand.
Specifically relating to our industry, in my 21 years of selling real estate, I have never seen a market like this before. Prior to 2020, I would joke with my clients that I’d seen it all—I’d seen the market skyrocket in the early- to mid-2000s and I saw it take a major dive in the late-2000s and early-2010s. I was pretty confident that I had experienced every curveball the market could possibly throw at us REALTORS®.
But who knew that a pandemic would cause so much change in our market? While a bit scary at first, the market has sped up significantly. Currently, the market is at an all-time high, with sale prices soaring beyond anything we’ve seen. One big reason this is occurring is due to the limited inventory across the country.
We’re seeing a range of reasons as to why there aren’t many homes on the market at the moment. Many homeowners can’t necessarily afford to purchase a new home due to the rise in sale prices. We’re also seeing that some potential buyers can’t compete with the staggering offers currently being made, as they’d need to ensure the sale of their home before purchasing a new property. And, due to volatility in retirement communities, a segment of homeowners who normally would be selling their houses at their age to downsize and relocate feel uneasy about doing so in the current climate.
This low inventory, coupled with the lowest interest rates that I’ve seen in my career, has resulted in home prices going through the roof. With interest rates being so low, many buyers are able to afford a lot more now, which puts a different kind of stress on the market and is why we’re seeing properties with multiple offers as soon as they hit the market.
So, how can CRSs handle this pressure and be a beacon to guide our clients in the right direction? My advice is that we have to learn how to coach for the current climate. I feel like I often have to wear two hats as of late—I’m both a REALTOR® and a social worker. We’re coaching our clients about how to win these sorts of multiple-offer situations. Sometimes we’re successful, but sometimes we’re not. I had one property that had 32 offers on it—which means 31 people got a rejection. Handling people’s emotional reaction if they’re not winning an offer can be difficult.
Luckily for our members, the Council is here to help. RRC offers a variety of online courses and webinars for agents to learn new skills, brush up on old ones and further their successes. We’re also holding our Sell-a-bration® 2021 Re-connect on Aug. 17–18 in Lake Tahoe. I think this is going to be huge this year because it’s the first live conference for many of our newer members, and the first time people will be leaving their homes for such an event since the pandemic began. But maybe more importantly, Sell-a-bration 2021 Re-connect will showcase the material that we need today in order to be competitive in our market. Members can regroup, network and share advice on how to best serve our clients both during these tumultuous times and moving forward.
