THE TRAIN IS COMING By Dale Schaechterle
When I was first licensed in real estate sales, the year was 1978, I was 19 years old, and the interest rates approached 20%. When I moved into full-time sales in 1984, we still had double-digit interest rates and it was not uncommon for a property to remain on the market for well over a year. High interest rates, an abundance of homes on the market (too many in fact), and low demand from Buyers led to a glut in the market. Offers with the contingency of the sale of another home were common, and created a “domino effect” with Sold Subject offers lined-up and Realtors® waiting to see which one would sell first. My record for “dominos” was 13 Sold Subject Offers in a row, with anyone of the properties being sold (without a contingency) leading to a closing for me. It was a Buyer’s Market of all Buyer’s Market - at least we thought so at the time. And now, about 40 years later, we have all-time low interest rates, thin inventory, and multiple offers for every salable home. Buyers are consistently writing well-over the asking price, removing contingencies, and still not getting the property. To me, it appears to be the exact opposite of my experience 40 years ago. What was a “Buyer’s Market” has become a “Seller’s Market” - like the Seller’s Market of all Seller’s Market - at least we think so right now. How did that happen? -------------- My mentor and dear friend, Howard Brinton taught me this simple phrase that has served me well for all my years in this amazing business - through all kinds of markets: “bubbles”, “crisis”, and “crashes”. It’s a simple phrase and yet it’s full of wisdom: “The Train is Coming!” What does that mean? -------------- Think of a train under a Christmas Tree, that runs in a circle. Real Estate always moves in the same manner, a circle. It’s called a Market Cycle. Right now, the market is strong for Sellers, it’s at an all-time high for Sellers. But, the “train is coming” and we need to be prepared for a change in the market. To avoid being caught off guard, get ready now for higher interest rates, less demand, greater inventory, and more of a Buyers’ market. It will be here before you know it. So, there’s two important lessons to consider, and to keep in mind as we navigate and guide our customers through today’s insane market: 1. It’s ALWAYS a good time to buy and sell real estate - provided you have the right guide. 2. You can ALWAYS thrive and excel in any kind of market - provided you keep a positive attitude and are prepared in advance. Want to learn more, and take your business to new heights? Then please reach out to me and ask. It will be my honor to guide you on your “Path to Mastery”! 100% Yours,
- Dale
