{"id":3155,"date":"2022-05-25T14:07:57","date_gmt":"2022-05-25T14:07:57","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/05\/25\/agentpulse-q2-2022-softening-of-the-market\/"},"modified":"2025-03-13T02:43:11","modified_gmt":"2025-03-13T02:43:11","slug":"agentpulse-q2-2022-softening-of-the-market","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/05\/25\/agentpulse-q2-2022-softening-of-the-market\/","title":{"rendered":"AgentPulse Q2 2022: Softening of the market"},"content":{"rendered":"\n<p><em>The biggest challenges this quarter: interest rates and inflation <\/em><\/p>\n\n\n\n<div class=\"infogram-embed\" data-id=\"835640e0-fa38-401b-8a4d-c695ef39c000\" data-type=\"interactive\" data-title=\"RT Agent Pulse Landing Page\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>Across the nation, the housing market appears to be softening, according to agents surveyed in the second quarter <strong>RealTrends AgentPulse.<\/strong> The key challenges include rising interest rates and inflation, housing affordability and low inventory.<\/p>\n\n\n\n<p>About 38% of agents surveyed were optimistic about the housing market in the next six months \u2013 a big drop from the 71% who were upbeat in the <a href=\"https:\/\/www.realtrends.com\/blog\/category\/agentpulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">AgentPulse Q1 report<\/a>. Another 46% were neutral in their outlooks and 16% were pessimistic.<\/p>\n\n\n\n<p>\u201cI am very worried about inflation and the rise of interest rates,\u201d says a <strong>Fathom Realty<\/strong> agent in the Northwest. \u201cBuyers are being priced out of homes and now face rising rates. We have got to get inflation under control.\u201d<\/p>\n\n\n\n<p>A <strong>RE\/MAX 100<\/strong> team leader in the Northeast was also pessimistic. \u201cWe typically have 1,000 houses on the market at this time,\u201d she says. \u201cHowever, now there are 89, leaving us with few realistic options.\u201d<\/p>\n\n\n\n<p>But there are still plenty of agents who are still optimistic about the market, typically citing ongoing high demand from buyers. \u201cIt appears that our market will continue on its present trajectory of increasing prices and high demand,\u201d says an agent with <strong>RE\/MAX Success<\/strong> in the Southwest. \u201cThe number of active, pending and sold listings remains constant. We are not seeing dramatic increases or decreases.\u201d<\/p>\n\n\n\n<p><strong>RealTrends AgentPulse<\/strong>&nbsp;requests quarterly surveys from some 19,000+ real estate agents around the nation on market trends, opportunities and challenges. Of the 225 completed surveys, 18% were from the Northeast, 22% were from the Southeast, 22% from the Southwest, 25% from the Midwest, and 13% from the Northwest.<\/p>\n\n\n\n<p>In the survey, about 39% of agents think that home sales will be up 5% or more in the next three months \u2013 a big drop from the 65% in the 1Q survey. Another 32% said home sales will be flat. When it comes to home prices increase, 28% said they expected home prices to be up more than 5% \u2013 a significant decline from 42% in the 1Q report \u2013 while 30% expected an increase of 1% to 5%, and 26% said they would be flat.<\/p>\n\n\n\n<p>For example, a <strong>Watson Realty<\/strong> agent in the Southeast expects sales volume to drop more than 5% in the third quarter, while prices will be up more than 5%, adding \u201ciBuyers are the biggest challenge.\u201d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-biggest-challenges-agents-face\">Biggest challenges agents&#8217; face<\/h4>\n\n\n\n<p>When it comes to challenges, interest rates and inflation moved to the top of the list, nudging out low inventory. Here are the challenges in order of most challenging to least challenging.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\"><li>Interest rates and inflation<\/li><li>Housing affordability<\/li><li>Connecting with sphere<\/li><li>Finding leads<\/li><li>Professionalism of other agents<\/li><li>Business planning<\/li><li>Low inventory<\/li><li>Institutional investors<\/li><li>Growing a team<\/li><li>Mindset<\/li><li>Business planning<\/li><li>COVID restrictions<\/li><\/ol>\n\n\n\n<p>Several agents from different regions also noted the importance of maintaining a positive mindset, regardless of changing market conditions. Others cited the challenges posed by lack of professionalism, particularly from new agents.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">A variety of marketing tools<\/h4>\n\n\n\n<p>When asked about their marketing tools, agents gave a wide range of responses, from traditional farming techniques to 3D modeling and virtual reality (VR) applications for new construction projects. Many agents also cited the importance of the CRM platforms, electronic signatures and video applications on their smartphones.<\/p>\n\n\n\n<p>An agent with <strong>Artera Lux<\/strong> in the Midwest noted that the <strong>ShowingTime <\/strong><a href=\"https:\/\/www.realtrends.com\/blog\/articles\/showingtime-launches-real-time-tour-availability-feature\/\" target=\"_blank\" rel=\"noreferrer noopener\">scheduling platform<\/a> was a huge timesaver, while a <strong>Keller Williams<\/strong> agent in the Southeast said monthly postcards were still an effective strategy for connecting with potential sellers.<\/p>\n\n\n\n<p>\u201cDigital platforms like <strong>Redfin<\/strong> allow buyers to save and comment on homes, so we can discuss each house that hits the market,\u201d says an agent with <strong>The Agency<\/strong> in the Southwest.<\/p>\n\n\n\n<p>Other new digital tools mentioned include <strong>Chime<\/strong>, <strong>LionDesk<\/strong>, <strong>Likely.ai<\/strong>, <strong>Padhawk<\/strong> and <strong>Cloze<\/strong>.<\/p>\n\n\n\n<p>Reflecting on the need for flexibility in serving clients in a changing market, an agent with <strong>LAMERICA Real Estate<\/strong> in the Southwest,\u201d says \u201cHigher interest rates have drastically changed plans for first-time buyers. Those looking just a few months ago now have to shift their focus and we need to assist them in creating a new strategy for home buying.\u201d<\/p>\n\n\n\n<p><em>If you have questions about&nbsp;<strong>AgentPulse<\/strong>&nbsp;or want to be added to the list, email&nbsp;<strong>RealTrends<\/strong>&nbsp;Editorial Director Tracey Velt at&nbsp;<a href=\"mailto:tracey@hwmedia.com\" target=\"_blank\" rel=\"noreferrer noopener\">tracey@hwmedia.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate agents surveyed for the 2022 Q2 forward-looking AgentPulse cited rising interest rates and inflation as biggest challenges.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[19],"class_list":["post-3155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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