The Biden Administration proposed a cap of 5% on rental increases across the board this week. How will the National Association of Realtors react to that? Also, we are talking about interest rates, inventory and the changes in MLS rules and how Realtors operate in the next month.
Hi everyone, I’m Brian Pate from the Pate Realty Group and Brian Pate Seminars in Wake Forest, North Carolina. Let’s go through today’s real estate update for July 16, 2024.
The National Association of Realtors has responded to the Biden Administration’s rent control plan, which aims to cap rent increases at 5% annually.
In a statement from NAR president Kevin Sears, he said, “NAR opposes misguided attempts to cap or control rental rates. Price controls may seem appealing, but they have backfired on local governments and harmed the people we need to help the most.
Developers are reluctant to build in areas where the government imposes rent controls on new buildings, and these policies actually decrease the supply of low-to mid-range housing units.”
Rent control is a rare instance where the research is conclusive; it doesn’t work.
We will see if President Biden and his administration stick to their desire on this one or walk away from it.
As a reminder, Realtor owned MLS systems are to make changes to comply with the NAR Settlement in the Sitzer/Burnett case by August 17, 2024.
Those changes will not allow for compensation agreements to be shared via an MLS system. In addition, compensation agreements with prospective Buyers must be signed before the first showing going forward.
For agents trying to figure out their strategy in the new era of real estate, every day you will need to showcase your value. If brokers and agents can focus on trust and transparency, they can separate themselves from others in the field.
Buyers will be ready to pay for good service. You will need to be able to define and articulate what good service is to potential Buyers.
We have proven over the years that Buyers want to use a real estate professional to guide them through the single largest transaction they will make in their lives in many cases. Money follows value and those that create value will benefit in real estate going forward.
Prepare for the top producers of the past so see challenges to their production from newer agents that quickly master the new way of doing business.
In interest rate news, there are more predictions that the FED will cut interest rates at least twice if not three times by the end of the year.
Personally, I don’t see more than one rate cut before the end of the year. Part of the reason is that the next interest rate cut will have a goal of stabilizing unemployment.
You can have your own opinion as to whether that will work or not. However, the change could take several months to alter the economy so I wouldn’t expect another cut only a couple of months after the first.
The other side of that is that housing is basically the FED’s barometer of the housing market. How quickly will home sales respond to a rate cut? Only time will tell.
Along those lines, the average national interest rate for a 30 year fixed rate mortgage was 6.81% yesterday. That is the lowest point since February 1st of this year.
While that is happening, inventory is rising as the number of active listings in the Triangle MLS this morning was over 7,000 for the first time since December of 2019.
The real estate market is changing in front of our eyes.
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Thanks for watching and have a great day.
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The Pate Realty Group - Wake Forest, North Carolina Area
27 авг 2024
