Mike Swaleh, Area Manager, Fairway Independent Mortgage: Nationwide, this is the lowest housing inventory compared to population in history. What is your perspective of the current housing market?
Lauren Johnson, Lux Life Real Estate: I've been a realtor for 15 years, and I'd much rather have the market we had during the recession. This market is making consumers become unrealistic and defeated.
David Nations, Nations Network Real Estate Solutions: We didn't build enough new homes in the decade after 2008. At the pace we are building houses right now, it will be 18 years before we reach the amount of inventory to match the demand.
Nikki Weddle, The Nations Network Real Estate Solutions: Buyers who miss out on existing home offers consider new construction. But the price of building can be a hindrance, and land is hard to find.
Matt Moore, Owner FM Design Build: There is not enough land, not enough labor, and not enough supplies. Builders, investors, and homebuyers are competing for the same property.
Leanne Pacheco, Community Engagement Manager, Fairway Independent Mortgage: Buyers and sellers need to surround themselves with a team of experts who understand their clients' goals and motivations and can help navigate this market.
Mike: The good news is that if you've got thick skin and can handle being a buyer right now, you should make money over the next three to five years as the demand evens out. In 2008, there was a 3:1 supply-to-demand ratio, and today, there is a 3:1 demand-to-supply ratio.
Matt: The questions I get asked are, "Is this a bubble?" and "If I build a house, will it still be worth the price in five years?" This current market is an offshoot to the 2008 crisis instead of a precursor to the next housing crisis. In every decade since the 1970s, we built 22 million homes across the country on average. The decade after the recession, we built 5 million. We are not going to solve the inventory problem by building one house at a time because we are never going to catch up.
Mike: That is why repurposing commercial real estate has become my passion.
Lauren: I would love to see local developers convert empty office buildings into multifamily housing. There is a huge demand for more inventory solutions.
Mike: There used to be a natural cycle to the housing market for buying and selling. But not anymore. In fact, you are doing yourself a favor by being counter-cyclical. How do you help your clients win in this market?
Nikki: Sellers have options. You can sell your house and then lease it back while you have time to look for a new house. Delayed possession options allow sellers to take their time looking for a home.
Lauren: Reverse contingency clauses are great options for sellers. The listing agreement can state that the seller has a certain number of days to find a house, and if they don't find a house, the contract terminates.
Mike: Knowing that advice should be tailored to the goals, financial position, and risk tolerance of each client, what wisdom do you share with buyers and sellers?
Lauren: Your commercial team needs to be more than the listing agent because they only represent that seller. Choose a commercial broker who fully understands your brand and has a team around them to assist with full representation.
Matt: We educate buyers on the importance of having strategic partners. Work with a realtor who can be creative on the offer of an existing home and understands the opportunity for working with a builder.
Nikki: Trust the team that is around you. We are all in this together, and we all talk to each other.
Mike: Negotiating the offer used to have nothing to do with anything we did as a lender. But now, that's all we talk about. Fairway Advantage is designed to give a buyer a competitive advantage when negotiating. Avoid anyone who is trying to talk you into something. Navigate toward people who are listening.
Leanne: Buying or selling a home doesn't have to be a miserable, daunting experience, and it should be enjoyable, even if there are a few difficult moments along the way. You should trust and enjoy working with the people helping you reach your goals.
