The Real Estate Market: Not “It” But “Them”

Written by Posted On Thursday, 10 September 2020 05:00

“The real estate market” is not an “it” but a “them.”

Nation-wide or state-wide reports and forecasts along with pundit projections about “the real estate market” make this “it” sound homogeneous and large-scale. In reality, the wide-horizon perspective does not tell you exactly what is happening and will happen in your neighborhood or to your real estate.

To begin with, each real estate property is unique.

• What happens locally around and to each property uniquely defines its market value as well as the buying and selling trends relevant to it.
• Each property has its own market just as each neighborhood has.
• This means “the real estate market” is a mosaic of individual property-value projections overlaid with neighborhood markets and countless layers that reflect each state and the country. That’s the “them” finesse of “the real estate market.”

Where do you and your real estate dreams fit in?

Sweeping national financial and social events like the Covid-19 Pandemic can have widespread influence on real estate across the country. How each property is affected may be dramatically different.

For instance, the working-from-home pandemic trend applies to some properties as if they were designed for the “stay home” lifestyle. Others have felt like prisons to the owners. And there’s everything in between. Where this trend represents value to buyers, properties will gain or lose status in buyers’ eyes depending on their functionality. The effect of this and other trends on individual real estate properties will be unique to that property, its uses, and owners.

Covid infection varies greatly across each state and over time. During outbreaks, real estate activity may temporarily slow or effectively stop to respect isolation and social distancing requirements. This pattern may not always be predictable.

Buyers and sellers make good decisions regarding their present and future real estate plans when they are aware of what is happening and could happen in their preferred neighborhoods.

The professionals, services, and organizations involved in real estate are also unique in their own right:

• Each real estate agent in the United States is licensed to help buyers and sellers purchase, sell, or lease commercial or residential real estate. Each state sets requirements, including education standards, for becoming a licensed real estate salesperson in that state and for maintaining this privilege.

• The designation Realtor is a registered trademark referring to a professional who is an active member of the National Association of Realtors (NAR), America's largest trade association, representing 1.4 million members. Not all Realtors are real estate agents. Home appraisers, property managers, real estate counselors, and real estate brokers are also NAR members entitled to work as Realtors.

• Each of the about 600 Multiple Listing Services (MLS) is unique and intensely local. A MLS is a database of real estate listings and the software real estate professionals and brokerages use to access it. MLS are organizations offering professional services, which rely on the people who use and operate the system. MLS is the powerhouse behind the purchase, sale, and lease of real estate across the country. Ask the real estate professionals you interview what they like most about the MLS they use: “What have they found is most useful to clients like you?”

• Invest time and effort to locate the local, experienced real estate professional who will be the best match for your real estate project.

All this uniqueness adds up to a lot of transactions every month and each year. As of August 27:

• Pending home sales in July 2020 achieved another month of positive contract activity, marking three consecutive months of growth, according to the National Association of Realtors®.

• Each of the four major regions reported gains in both month-over-month and year-over-year pending home sales transactions.

Where do you fit in?

Conversations with real estate professionals will enlighten you as to how the Pandemic is influencing real estate values and transactions locally. Real estate professionals monitor local Public Health requirements and Pandemic patterns to ensure safe delivery of their services and minimize disruption of real estate transactions. These discussions should center on what is relevant to your real estate dreams and what is actually happening locally, not on sweeping trends and what’s going on in markets on the other side of the country.

What real estate and other professionals observe can provide valuable insight if their observations are relevant to your goals and your property. For example:

Interest rates are not absolute.

The borrowing power of buyers is reflected in the interest rates they qualify for. This in turn is a reflection of their income, debt management, employment history, and the appraised value of their unique real estate. Real estate professionals are expert at matching buyers and their real estate purchase with the most receptive local lenders.

The actions and inaction of other buyers and sellers influence your real estate choices.

For instance, NAR’s chief economist Lawrence Yun recently said, “Anecdotally, Realtors® are telling me there is no shortage of clients or home seekers, but that scarce inventory remains a problem. If 20% more homes were on the market, we would have 20% more sales, because demand is that high.”

Rate this item
(1 Vote)
PJ Wade —       Decisions & Communities

Futurist and Achievement Strategist PJ WADE is “The Catalyst”—intent on Challenging The Best to Become Even Better. A dynamic problem solver and author of 8 books and more than 2800 published articles, PJ concentrates on the knowledge, insight, communication prowess, and special decision-making skills essential for professionals and their clients who are determined to thrive in the 21st-Century vortex of change.

PJ Wade's latest business bookWhat's Your Point? Cut The Crap, Hit The Mark & Stick!—further proves PJ's forward-thinking expertise and her on-point ability to explain technical, even non-verbal, communication details in practical, actionable terms. Print publication: Fall 2022.

PJ: “What's Your Point?the pivotal 21st-Century business question—must be answered before you open your mouth, hit a key, tap anything or swipe. Too often 'Your Point' is not clear to you and communication remains an expensive illusion.”

As The Catalyst, PJ concentrates on enhancing communication ROI for experienced advisors, executives, entrepreneurs, business owners, and other savvy professionals, who may not have received as much formal training in communication as they have in their own field.

Onward & Upward—The directions that really matter! Reach PJ at and visit her What's Your Point? Blog. Keep up-to-date with PJ's popular column  Decisions & Communities

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.