Homeowners with a mortgage at or near 6% won’t need much urging to rush back to the closing table for a refinance when interest rates drop. But what about those still seeking to buy? Many can’t afford to wait for the perfect interest rate to make the move.
There is strong evidence to suggest that significant pent-up demand in the real estate market is expected to positively influence market dynamics in 2025. While the market is off to a slow start this year, some experts, like Lisa Sturtevant, chief economist at Bright MLS, think that could change.
“There’s a lot of pent-up demand out there, but buyers were certainly moving very cautiously in January,” Sturtevant said in an interview.
Chris wrote about this in much more detail in an article that appeared in the January 2025 issue of Scotsman Guide.
A Real Estate Trigger Ready To Be Pulled
Years of underbuilding, compounded by recent economic challenges and high mortgage rates, have created a backlog of potential buyers who are ready to enter the market once conditions improve.
Middle Tennessee is a prime example of a region poised for increased homebuying activity. The area has experienced job growth, housing affordability, and an influx of high-earning renters—indicators of a soon-to-be active real estate market.
With mortgage rates expected to decline, homes will become more affordable, enticing both local buyers and newcomers.
Several markets across the country are in a similar position. According to the National Association of Realtors (NAR), multiple regions in the U.S. are expected to outperform others due to accumulated housing demand. As mortgage rates fall and inventory gradually expands, these markets will likely see a surge in activity, stabilizing home prices and reinvigorating sales.
Beyond regional trends, national housing data suggests that construction is ramping up, and seller sentiment is shifting. More homeowners are listing properties, further releasing pent-up demand. As economic conditions continue to improve, this latent demand could quickly translate into increased home sales across the country.
Getting Ready for a Changing Real Estate Landscape
The real estate sales process has undergone a transformation that will likely result in fewer real estate agents bringing buyers to market, creating new challenges for brokers and loan officers.
In this evolving environment, listing agents are becoming more influential than ever, playing a crucial role in guiding homebuyers through the pre-approval process.
This means that mortgage originators who are not already integrated into the channels where these agents operate risk missing out on a significant portion of the market.
However, only those prepared with effective strategies, strong referral networks, and digital-first solutions will be positioned to capture this opportunity.
This is where a SmartCRM becomes so important. Those who have the right marketing automation technology will stand the best chance to win this new business. We’d love to show you a demo so you can see this impact for yourself.
To find out more, download the full article in the January 2025 issue of Scotsman Guide or reach out to Usherpa today to ensure you’re ready for the market’s return.
