Let's Get Real About What's Going on With the Real Estate Industry: 2021
Do you know someone who is trying to buy a house yet is struggling to even find one? Well, they aren’t the only ones. According to Lawrence Yun, chief economist at the National Association of Realtors (NARS), “This is very unusual.”
Don’t worry, it may seem like the rug will get pulled out from under us in the housing market; however, the good news is on the horizon for buyers. According to Norado Real Estate, the market's sales are declining to a more stable foundation—following some of the most lively activity in the real estate market since 2006.
Impact on Real Estate Careers
This doesn’t make branching into a real estate career unstable or indicate that there will be a repeat of the 2008 recession. According to Mark Zandi, chief economist of Moody’s Analytics, given the job market and tighter mortgage underwriting standards since the financial crisis, a broad-base house price decline or recession is highly unlikely.
At a time when more individuals are expressing a desire to gravitate to a different industry or realize their dreams of more workplace flexibility and autonomy, a real estate career continues to be a highly sought-after career. According to the Bureau of Labor and Statistics, demand for real estate brokers and salespersons will continue to grow over the next several years.
If you were wondering, a real estate license does not restrict someone to only selling houses. A real estate license can be used for entry into many other careers as well, such as title examiner, property manager, home inspector, real estate appraiser, or loan officer. Thus, a real estate license is a low-cost, low-barrier-to-entry market that provides a wealth of other opportunities to change or accelerate your career.
Impact of the Pandemic
The pandemic paralyzed the market, but there began an influx for single-family homes when everything started opening. However, it led to an unexpected boom in the real estate market—the low mortgage rates and millennials seeking a haven in the suburbs, according to CNBC and Frank Martell, president, and CEO of CoreLogic.
According to Jessica Lautz, the vice president of demographics and behavioral insights for the NAR, the radical housing market increase in 2021 has not been seen since the 1960s. NAR’s observation on housing prices over the past year is a 24% increase in house prices since May 2020. However, this is not going to last forever. In the coming months, the housing market is expected to cool off, and as the summer days start to feel a little colder, so will the housing market.
Don’t let the headlines discourage you from starting your journey towards getting your real estate license. Every industry has seen an unexpected shift from the last year, but nothing that is concerning. Learn more about how to become a real estate agent or find your state’s licensing requirements to get your new career started.