Introduction: I recently had the chance to reach out to Mark Thomas and Debbie Dailey of Realty One Group, two experienced real estate agents who bring a thoughtful perspective to the current housing market. Though I’ve only had the pleasure of working with them on a few shoots so far—two of which included aerial photography—their appreciation for high-quality visuals highlighting a home’s details was evident from our first collaboration. They discovered my services through a referral from a fellow client, Leigh Tracey-Gaynair, after seeing a set of photos Mark described as capturing the “architectural” essence of the property.
In our Q&A session, Mark and Debbie shared their insights on the effects of the recent dip in interest rates, evolving buyer expectations, and the challenges their clients face in today’s market:
1. How has the recent drop in interest rates affected your business? Are you seeing more activity from buyers and sellers?
The most recent drop of ½ a point on Sept. 20th probably won’t have much impact on the housing market until sometime into the first quarter of next year. The discussion or buzz around rate drops does have some influence on the buyers currently active in the market. It is encouraging to see some signs of movement in that direction. The hope will be to buy while prices remain where they are and later refinance for a better payment option. We are seeing an increase in listings as potential sellers home to have the opportunity to buy themselves!
2. What kind of feedback are you hearing from potential clients regarding the current market conditions?
Current market conditions is a very full term. Home prices are their highest ever and we have the lowest relative consumer wages. Couple those things with the highest interest rates in a decade and it seems that few know what to do. That doesn’t change that fact that for most buyers…when it’s time to buy, you do the best you can with what you have. That “time” is determined by the birth of a child, loss of a family member, divorce, or perhaps Mom and/or Dad moving back in. This lowers the expectations for many buyers who end up perhaps buying a slightly older home or one in an older neighborhood at a lower price than expected. As we see more homes listed on the market we expect to see some lowering of the housing prices.
3. Are your clients feeling more confident about making offers now, or are there still some hesitations?
Offers really aren’t the problem. Qualifying becomes a moment of enlightenment. We all just want to know which loan packages the banks will let us in to. We would all own a million-dollar home if the payments were approved! Of course this isn’t a concern for those with cash payments, 800 plus credit ratings, or a large sum of equity from an out-of-state sale. The best thing to do is “get in the game” and see what you qualify for and perhaps you will find a home that is perfect for you!
4. Have you noticed any shifts in the types of homes or price ranges that buyers are targeting with the lower interest rates?
Lower rates are kind of a sliding scale. If your credit is premium, then you get a little bit better rate, but every credit rating will see some improvements as the prime rate comes down. Higher prices in “stick-built homes” means that entry level home ownership is now at an all-time high! What is the new “entry level”? Manufactured homes or even Tiny Homes. Get into a home that is customarily less expensive, but wouldn’t you know the prices of those have been on the rise now as well. They have come down some in the last 6-12 months as we see increase in the part rents for those homes.
Our conversation highlighted some of the unique challenges and opportunities in real estate right now. Mark and Debbie’s insights reveal that while lower interest rates might offer hope, the impact is more nuanced, affecting buyer confidence and market activity gradually. Despite this, they see potential in helping clients make the most of what’s available, whether that means adjusting price expectations or exploring different home options. Working with agents who share such a clear commitment to guiding their clients through this complex landscape is always a rewarding experience.