Lori Lane, President of the New Homes Division Berkshire Hathaway HomeServices Georgia Properties, expands on the state-of-the-housing-market report during MarketNsight’s MarketWatch Event and reveals key changes in compensation agreements.
Atlanta, GA, United States – July 1, 2024 —
The future of the real estate market is an area of interest and concern for homebuyers, real estate professionals, builders, and investors. Having insight into what comes next can empower decisions and allow key players to gain benefits and navigate losses as the market continues to change. Lori Lane, President of the New Homes Division of Berkshire Hathaway HomeServices Georgia Properties, helps to define the real estate market for the remaining months of 2024 through an in-depth analysis of Market Nsight’s MarketWatch event, where she served as a panelist alongside primary speaker and Chief Analyst John Hunt.
Follow along as we explore the highlights from her in-depth analysis.
John Hunt’s update on home sales and pricing considerations through 2024:
Major publications and individual analysts alike are raising the alarm when it comes to home sales and pricing considerations, but John Hunt describes the current reporting on the market as “incendiary” and believes that the truth is in the numbers, adding, “You can live by the beach and be in the mid-three [hundred thousands] in some top markets!” He cites zoning and regulation reform as a top improvement that is increasing home affordability in select locations.
Despite a small and recent decrease in home sales, the average sale of homes year-over-year is increasing compared to recent years, even with a current 30-year fixed interest rate of 6.99%. While some homeowners are lowering prices to lure in buyers, the public interest in homes continues to make this a more effective short-term strategy. Sellers with more time to make a sale can continue to maintain the higher prices that have been present throughout most of 2024. “Pending sales are finally in the positive for the first time since June of 2022,” says John Hunt, listing this change as a reason to celebrate.
Key opportunities for builders
The housing deficit is continuing to hold, with John Hunt identifying the housing deficit at roughly 38,000. The need for newly available homes is clear, making the market ideal for builders who are able to bridge the gap, particularly in areas with expanding job markets. “As more people move closer to new work opportunities, the needs in certain areas will continue to grow,” explains Lori Lane. Builders can benefit from creating new homes to sell, but there is also a thriving market for build-for-rent homes in areas experiencing an influx of new residents.
Resale price as a core focus for housing demand
A new home may seem ideal on the surface, but today’s sellers are more driven by resale prices than ever before. With improvements in renovations and more accessible DIY solutions, potential buyers are more likely to choose previously owned homes due to their clear economic benefits, making it important to price new homes more reasonably. “Only rarely will new homes find meaningful absorption when they are priced higher than a 20% spread above resale pricing,” says John Hunt.
Lori Lane’s breakdown of changes in compensation agreements
In her panelist interview at MarketWatch, Lori Lane spoke on upcoming changes regarding how compensation to a buyer’s agent is paid and disclosed, as well as how it can be advertised. “Berkshire Hathaway HomeServices is working diligently to support these changes across all of our websites and client websites,” says Lori Lane, citing the following changes as valuable knowledge.
- The agent or brokerage working with the buyer will need to have a signed compensation agreement prior to showing any property.
- The buyer must approve the total compensation that is paid to the buyer’s agent or broker, and the compensation must be specific.
- Information regarding compensation cannot be allowed in any realtor owned MLS service.
Additional projections:
- Markets will continue to provide opportunities for all cash buyers and non-discretionary buyers since they do not need to worry about interest rates.
- High mortgage rates will continue to dissuade some potential buyers, but the ongoing need for homes will continue to outweigh the number of available homes in the market.
- Prices will gradually begin to lower as more builders offer new homes, as well as build-for-rent opportunities that favor select areas experiencing a large influx of new residents.
- The market for Atlanta, Georgia will continue to sell the most homes where the most lots are sold, with buyers also making decisions based on school districts.
The MarketWatch breakdown, as reported by Lori Lane, highlights a real estate market that is trending in a positive direction after years of changes. For the time being, the real estate market will benefit builders and cash buyers, as well as sellers with a more open timeline. However, potential homebuyers concerned about the current interest rates do have the option to purchase now to start building equity and then refinance once rates are lower. It’s important to keep in mind that as more housing options enter the market with support from builders, the market will have more to offer buyers down the line.
Contact Info:
Name: Lori Lane
Email: Send Email
Organization: Berkshire Hathaway HomeServices GA Properties
Address: 100 Mansell Ct E, Roswell, GA 30076
Phone: (678) 631-7821
Website: https://lorilanerealestate.com
Release ID: 89134385
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