Can you give us an overview of the recent housing trends in the U.S. and the changes in real estate regulations?
In August, the National Association of Realtors (NAR) rolled out new real estate regulations. This change shifts the responsibility of negotiating commissions, with seller’s agents now negotiating directly with sellers and buyer’s agents negotiating with buyers. Traditionally, it’s common for sellers to contribute to the buyer’s agent commission, even if it doesn’t cover the entire amount. Additionally, when buyers attend open houses, they are now required to register, which makes it clear that the hosting agent—whether or not they are the listing agent—represents the seller. If buyers need more information than what’s offered in the property brochure, a formal agency agreement must be put in place. For further details, the NAR has a FAQ section available at https://www.nar.realtor/the-facts.
What kind of impact have recent interest rate changes had on the housing market?
On September 18, the Federal Reserve surprised many by cutting interest rates by half a percentage point, which was double what had been anticipated. This is the first rate decrease since 2020 and has brought renewed hope to the market, reflected in climbing stock prices. This move indicates that inflation is under control, although concerns about the rising unemployment rate persist. The mortgage market typically adjusts in anticipation of the Fed’s decisions, and this cut was already anticipated by market players. Many expect another two cuts of 0.25 percentage points by the year’s end. Over the next 12 to 24 months, rates are projected to continue decreasing, potentially dipping into the low 4% range.
Can you share insights on the housing supply situation in 2023 and what we might expect in 2024?
In 2023, new listings were only about 70% of pre-pandemic levels, which has contributed to a surge in home prices. Looking ahead to 2024, there’s a forecasted slight increase in new listings compared to 2023. With the recent cuts in rates, optimism is rising about the potential for greater housing availability by 2025.
If readers have questions or need resources related to real estate, how can they get in touch with you?
I’m here to help anyone with inquiries. At Compass, we have a nationwide presence and a robust professional network that includes attorneys, CPAs, and financial advisors, all ready to assist readers in finding the right professionals for their needs. My aim is to deliver authentic care, exceptional real estate services, and meaningful value to positively impact our community and clients. Feel free to reach out to me, Sophie Tsang, at [email protected] or by phone at 650-687-7388. I can also provide data on annual new housing supply from the past seven years.
