45% of real estate agents claim they're struggling to pay rent in November, per Alignable.
The latest data reveals a 5% increase in pending home sales from October, marking a 10% rise compared to September. The study, involving realtors, indicates that the persistently high interest rates, with the average 30-year fixed-rate mortgage around 7%, have contributed to the challenges in finalizing home sales.
According to Corey Burr, Senior Vice President at TTR Sotheby’s International Realty, the Federal Reserve's management of interest rates has created significant disruptions in the residential real estate market. He emphasizes the impact on smaller brokerages, facing difficulties in navigating the current real estate cycle with fewer assets to weather the challenges.
Pending home sales experienced a decline of 1.5% from September and 8.5% from the previous year in October, marking the lowest figure since the National Association of Realtors began tracking this statistic. This trend has adversely affected realtors, leading to a reduction in the number of agents across North America.
Burr anticipates a potential improvement in the market in the spring if mortgage rates continue to decline. While mortgage rates have slightly decreased in recent weeks, they remain a factor in the decision-making process for homeowners. The housing market might experience relief if inflation subsides, and there are predictions that the Federal Reserve, having reached the end of its tightening cycle, could introduce rate cuts in 2024. This could contribute to lower mortgage rates, providing a positive outlook for the housing market.
