BREXIT: What does it mean for US real estate agents?
Everyone has read the news over the past few weeks about Britain’s decision to leave the EU. It is too early to really determine all the consequences to this action worldwide, but we can make some strong predictions about the impacts it will have right here in the US. How will this decision impact real estate agents as they work with buyers and sellers over the next year?
As we know, mortgage rates are at record lows based on the past few years and many economists predicted that we would see an increase soon. According to Freddie Mac, the average 30-year fixed rate is about 3.54%, down a half percent from 2015. With the volatility in the global economy, investors are scurrying towards safer securities – like government debt. This translates into mortgages remaining low – if not going lower in the US.
With rates expected to remain low in the near future, agents may see an uptick in the amount of first time buyers coming into the marketplace. By pushing out this messaging to current renters, agents are able to attract these clients. Maintaining a strong knowledge of the market is a vital tool as agents work as advisors to guide these clients through the process.
With potentially more buyers in the marketplace, sellers may have a competitive advantage in many markets as there is more competition for their property. Agents should take time to understand multiple offer scenarios and be able to advise their seller clients on how to best navigate these.
Written by Gregory Kiep
With over ten years of experience in real estate marketing, Gregory has worked with top firms in Boston and Cincinnati, where he was raised. After completing his MBA at Xavier University, Gregory entered the world of real estate and successfully earned top Realtor awards for sales his first few years. Transitioning to a marketing role, he has worked in content and social marketing, SEO, web development, and branding for top firms around the country. He is currently the director of marketing at Charlesgate Realty. You can find out more about him at GregoryKiep.com or follow him on LinkedIn or Facebook.