Yes, mortgage rates climbed above 8% this week.
And yes, this is the first time rates have been that high since 2000.
Your consumers are not only seeing these headlines, but they’re feeling the effects of the most unaffordable housing market in decades. So, how do you talk about another rate increase with them?
Ryan Serhant wasted no time in creating a green screen to share his take on 8% rates, and it’s one any real estate agent can replicate—with added value for your local market, of course.
Serhant hooks the audience with a sarcastic “We did it!” before sharing his take with home buyers.
In the video, Serhant touches on two points that home buyers—or, at least, buyers who can still afford monthly payments—should take into consideration:
#1— Home Values
With the multiple-offer frenzy of 2021 and 2022, the majority of homes were purchased for well above the asking price. In many markets, competition has slowed, especially for properties above the median price point. Serhant stated:
“Let’s say the value of the home you want to buy is $1.5 million. I would rather buy that, in today’s market, at $1.2 million at an 8% rate than two years ago. Because I would have paid $2 million for a $1.5 million house and gotten 3% rates.”
This is where your local market data comes in. Share with your audience the trends you see happening with home values in your area. Point out the benefits for buyers in today’s market, whether that’s less competition or more price reductions. You can break it down by price point or neighborhood to make it even more hyper-local and relevant for consumers.
#2— Sales Volume
Serhant also talks about this year’s sales volume. With reports showing the U.S. housing market will likely finish the year with about 4.1 million properties sold, it’s on pace for the fewest homes sold since 2008.
Since buyers are backing off due to unaffordability, when rates do come down, all that pent-up demand is going to re-enter the market. “You think pricing is high now?” Serhant said, “Just you wait.”
Serhant’s message falls in line with what Barbara Corcoran said in her viral video this week, though he does empathize with buyers a bit more.
“Are rates high? Absolutely. Are they the highest they’ve been since 2000? Absolutely. Is it scary? Of course. Will they eventually come down again? Yes. And can you renegotiate those rates later, and not the price? Yes.”
Real estate agents know that this is not the best time for everyone to buy a house—because, for many, monthly mortgage payments are too unaffordable. In your green screen video (or blog, newsletter, or Feed post), share all the relevant information to buying in today’s market, so your database can weigh the pros and cons for themselves.
