Why Listings Really Matter
Real estate listings don’t just matter, they really matter. In most markets, if you have a listing, that’s money in the bank. Even during the COVID-19 pandemic, listings were important – and are a crucial part of the real estate business. We’re still in a situation – and perhaps even more so today – where the numbers of buyers vastly outnumber the number of available listings.
I was recently watching the news, and reporters claimed home builders have a record number of new orders and a record demand for newly built homes. This directly corresponds with the number of available listings because even though demand is high, there are a limited number of new listings being posted on the market.
If you can’t buy a house that has already been built, and you can afford the current real estate interest rates, then your only option might be to buy a new construction home instead.
Why Listings Are So Hard to Get
Many people who bought their homes a few years ago were able to lock in incredibly low interest rates, which is good for anyone who is looking to stay in their home for the foreseeable future. However, the recent rise in rates can make it difficult for someone to sell their current home and buy a new one. For these reasons, a lot of agents struggle with how to get real estate listings.
Think about it: Even with the considerable amount of equity a homeowner may already have, going from 3% to 6-7% interest is going to significantly impact your overall buying power.
For some people, it’s simply better to stay put.
The good news is, that’s not the case for everyone. There are people out there who are looking to sell their homes – and lots of them! When there’s a necessity to move, high interest rates don’t change that.
The reasons people may need to move may be as simple as needing to be in a different school district for their kids, or maybe they have to move for work-related reasons. Some people moved further away from work while they could work remotely, but have returned to the office and need to be closer to save time on the commute. You also may have some situations where people want to downsize when they retire or need to get a bigger house to make room for a growing family.
- Lifestyle concerns sometimes trump interest rates.
You can try to “time the market,” but that isn’t always a viable strategy depending on your timeline, budget, and buying power. Furthermore, not everyone with a mortgage has the lowest interest rate. Many people’s credit scores and financial situations have improved over the past several years, and it may actually make financial sense for them to list now.
So, while it has been a challenging spring in 2023, and listings are a little harder to get these days, I’m eternally optimistic. I think the next year is going to see some strengthening and some loosening up in the market – and that will only add to the overall value of a listing.
Final Thoughts
When you get a listing, it’s something to celebrate. We’ve established that listings can be hard to come by, so when you get one, it’s important to pat yourself on the back and acknowledge you’ve worked hard for it.
You’ve put your time, energy, and effort into building the connections that led you to find a buyer, seller, or both. You deserve that listing – but you also owe it to yourself to turn that into multiple sales.
The difference in doing business this way vs. not finding the time to market and sell your own listings could cost you tens of thousands of dollars.
If I’ve done nothing else to change your mind, I hope you take this with you: Listings don’t just matter, they really matter.
