What’s The Tea with 4D? 🍵

Hello friends!

I hope you are finding ways to stay cool, calm, and collected during these summer days, perhaps with some much-needed refreshing tea…

Speaking of tea…what’s the news this week? Well, I recently attended a webinar hosted by our local Idaho Realtor Association discussing the upcoming changes to our commission practices, which will take effect next month.

Were you aware of the lawsuit the National Association of Realtors recently settled? While it still has to be formalized by the court in November, it appears to be moving forward, along with the associated changes.

The essence of the suit was that the plaintiffs felt the previous commission advertising structure was unfair to buyers, suggesting a “set” commission structure. For the record, a set commission has never existed. Commissions have always been a negotiable element of real estate transactions.

So, what has changed since the lawsuit was settled, you ask? First and foremost, commissions will no longer be displayed on the MLS (Multiple Listing Service).

This means that as a buyer’s agent, I will have to negotiate my commission directly with the seller of any home my buyers want to make an offer on. If the seller does not offer compensation to the buyer’s agent, I will need to establish specific compensation with the buyer directly.

One of the biggest changes is that agents will now have to have buyers sign either a representation agreement or an acknowledgment form as a customer before showing them homes. This means no more casual home showings—we will be discussing our relationship status right from the start. It might feel a little awkward at first for everyone involved, but eventually, we will all adapt to the new customs, as we always have in this industry.

Ultimately, I view these changes as an opportunity to establish more formal relationships with clients and customers. It will help buyers decide who they want to work with earlier in the process and ensure that agents have more commitment from the people they work with. Change can be difficult, but it can also bring great shifts for everyone involved! I look forward to embracing these changes and growing with them.

If you have any questions about the upcoming changes, don’t hesitate to reach out for a more in-depth chat!

Curious about the local market? Let's catch up and discuss your plans and questions. Your first coffee or tea is on me! 😊

Simply use the button below to choose a date and time that suits your schedule. Once booked, I'll personally reach out to confirm the location and we’ll go from there. Don’t wait—reserve your spot now and let’s get your real estate journey started on the right path.

Unlocking Buyer Opportunities in 2024

There’s no arguing this past year has been difficult for homebuyers. And if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s market felt like too much to tackle. You’re not alone in that. A Bright MLS study found some of the top reasons buyers paused their search in late 2023 and early 2024 were:

• They couldn’t find anything in their price range

• They didn’t have any successful offers or had difficulty competing

• They couldn’t find the right home

If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in.

1. The Supply of Homes for Sale Is Growing

One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at data from the National Association of Realtors (NAR), you’ll see how inventory has grown throughout 2024 (see graph below): 

This graph shows the months’ supply of existing homes – homes that were previously lived in by another homeowner. The upward trend this year is clear.

This increase means you have a better chance of finding a home that suits your needs and preferences. And if the biggest reason you put off your home search was difficulty finding the right home, this is a big relief.

2. There’s More New Home Construction

And if you still don’t see an existing home you like, another big opportunity lies in the rise of new home construction. Builders have worked to increase the supply of newly built homes this year. And they’ve turned their attention to crafting smaller, more affordable homes based on what’s most needed in today’s market. This helps address the long-standing issue of housing undersupply throughout the country, and those smaller homes also offset some of the affordability challenges you’re feeling today.

According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below):

This means, that if you didn’t previously look at newly built homes as part of your search, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget.

So, consider talking to your agent about what builders have to offer in your area. Your agent’s expertise on builder reputations, contracts, and more will help you weigh your options.

3. Less Buyer Competition

Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. And when you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the latter half of 2024, saying:

This creates a unique opportunity for you to find a home you want to buy with less stress and at a potentially better price.

4. Home Prices Are Moderating

Speaking of prices, home prices are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years (see graph below): 

This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. But make no mistake, that doesn’t mean prices are falling – they’re just rising at a more normal pace. You can see this in the graph. The bars are still showing prices increasing, just not as dramatic as it was before.

The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. That moderation means that you are less likely to face the steep price increases we saw a few years ago.

The Opportunity in Front of You

If you’re ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you’ve faced are getting better as time goes on.

On the other hand, you could choose to wait. But if you do, here’s the risk you run. As more buyers recognize the shift in the market, competition will grow again. On a similar note, if mortgage rates do come down (as forecasts say), more buyers will flood back into the market. So, making a move now helps you take advantage of the current market conditions and get ahead of those other buyers.

Bottom Line

If you’ve put your dream of homeownership on hold, the second half of 2024 may be your chance to jump back in. Let’s connect to talk more about the opportunities you have in today’s market!