2024 Real Estate Recap: Embracing Change and Our Thoughts on the Upcoming New Year

Discover how to navigate the evolving world of real estate with expert insights from Lauren Jones & Jenny Lendle. This episode provides a thoughtful reflection on the key topics covered throughout 2024, touching on buyer agency agreements, market shifts, and the importance of fostering relationships in real estate. As we prepare for 2025, the discussion emphasizes informed decision-making and maintaining connections with clients. 
• Recap of important discussions from 2024 
• Insights into buyer agency agreements and client education 
• Exploration of agent fees and commission structures 
• Analysis of the shifting housing market dynamics 
• Renting vs. buying considerations for potential homeowners 
• Importance of long-term relationships in real estate 
• Outlook and predictions for 2025 market trends

MOVE Worthy Podcast with Lauren Jones & Jenny Lendle. Together we have the experience to MOVE you forward!

Transcript

Real Estate Market Trends and Predictions

Speaker 1 0:12

all right , we are back with the move worthy podcast with jenny and lauren and this is our episode .

Speaker 1 0:21

We're gonna do a little bit of a 2024 wrap-up . We decided weeks ago to to do this podcast , came up with an amazing name which I actually I love um , and it's been a lot of fun . You know , this is our seventh episode and we've talked about so many hot topics , so many things that are going through , I think , everyone's mind right now the way the market is . So we're going to do a little recap , a little wrap up , and go through those topics and pick out some key points and then we'll be back in the new year with fresh , new , fun , exciting and educational topics From our first episode , which was obviously the hottest topic of the year .

Speaker 2 1:14

Fire agency .

Speaker 1 1:15

Yes , it's still , you know , still new , still , I wouldn't say a struggle , but definitely . I mean . Someone messaged me on Facebook the other day hey , can I go see this house ? Hey , can I get your name ? Can I get your phone number ?

Speaker 2 1:31

Right .

Speaker 1 1:32

Can we talk Right First ? I didn't even say anything about a buyer agency agreement . I was just going to wait until we actually got to that phone call .

Speaker 2 1:40

Right .

Speaker 1 1:41

And then explain it , because I mean , let's be honest , a lot of people on Facebook , they're hitting the . Are you , is this still available ? Button ? Yeah yes , that's about it right and it never usually turns into a real conversation or a real lead or showing , so I'm very hesitant on those obviously obvious reasons , but but definitely it's all new it is still all new and I think we're still from time to time .

Speaker 2 2:11

We're still seeing new things and new ways and different ways that agents are handling these buyer agencies . We're still seeing very different point of views on how they should be handled and that really has been very interesting If you follow a few people on Tik TOK and um , whether they're lenders or realtors or brokers , everybody has a different point of view and everybody has a different idea as to how the buyer agency should be handled , and I'm going to tell you some of them are . It's good stuff .

Speaker 1 2:48

Right , yeah .

Speaker 2 2:49

It's good stuff . So you know , while I think that the whole buyer agency was a hot topic this year , there's still a lot of learning happening . For sure .

Speaker 1 2:59

I think so . I more so think it's just the public .

Speaker 3 3:03

Yes .

Speaker 1 3:03

I spoke to a potential buyer the other day and I think where the chaos comes in is these the lead systems so zillow and the other lead sites . When you click on a house or you want to see something or you're interested in something , it immediately sends you to an agent who immediately wants to set up an appointment , who immediately has you sign a buyer agency agreement .

Speaker 1 3:26

And the public is still not a hundred percent sure aware of what's going on and I had a conversation with someone the other day about it . I said look , if you've already signed something with this agent , you know , feel free to work with them . I get it , I'm not going to step on their toes . Obviously , if you want , would like to work with me and you haven't signed anything yet , maybe have that conversation with that agent . You know , we're kind of leaving it in the buyer's hands now to be a little more . I guess some people feel confrontational about it but really you're just having a conversation .

Speaker 1 4:03

Hey , I didn't realize that when I clicked this button I wasn't going to be able to work with the realtor . I really wanted to work with yeah and I think , as realtors , we just have to be open to those conversations which obviously , if we stay open , the better off we are for sure and if people get , which we know they will .

Speaker 2 4:23

Oh yeah , there's going to be defensive responses for sure , but I just yeah .

Speaker 1 4:28

Education for all realtors and our clients , the public , letting them know what's going on , and always call your agent first . If you're unsure , call your agent . If you hit a button and you're freaking out now , call your agent .

Speaker 3 4:42

Yes .

Speaker 1 4:43

Before you sign something , call your agent . Yes , before you sign something , call your agent call your agent , yep so I think that's pretty . That's , that's the key points on that one for sure agent fees , commissions from a seller's point of view , like what should we be telling our sellers ? Are we offering up front ? Are we saying , oh yeah , we're gonna , yeah , we're going to give this , we're going to give that , or are we waiting ?

Speaker 2 5:05

Right . Are we preparing our sellers for what's to come , what they're going to see , what it's going to look like ?

Speaker 1 5:11

Yes , not telling them , hey , you only have to pay my side , which if that's what they choose , then that's totally fine .

Speaker 2 5:18

But showing them what it could be , what it could look like . Yep , i's a key , a key feature , a key point in in um meeting with sellers and discussing agent commissions for sure .

Speaker 1 5:32

I like the way you do it with your , your net sheet yeah like hey , here's what it looks like with and without . Are you comfortable with this bottom line ? And if you're not , let's adjust let's make it .

Speaker 2 5:43

Let's make it okay , because we're not going to lose a sale over a two thousand dollar . Buyer agent commission no you know , let's , let's , let's get it right now yes and understand that the reason we're priced the way we are is to prepare ourselves for what's coming . So when it does come , you're not . You're not shocked , you're not shocked and you're not , or defensive .

Speaker 1 6:02

Yes , I think that's what most people get very defensive yeah , yep . I stopped getting defensive when it comes to offers . I'm like , okay , I'll just present it .

Speaker 3 6:11

Yeah .

Speaker 1 6:11

I'll present it , I'll give the facts . Let the sellers decide or let the buyers decide . I mean , if we need to be pushy , if our client wants us to be a little aggressive and push a little bit , then we push . If our client doesn't , then we just submit the offers . That's all we're doing . We're relaying the information and giving our clients the best advice possible during that time . So , yes , I think we're going to see a lot of changes in 25 with the fees and where they come from and what they look like .

Speaker 1 6:44

All the while , while prices aren't really going to get any cheaper no sale prices I think commissions are going to come down too .

Speaker 2 6:54

I think they will . I mean , you know we're not technically there's no standard going rate . You know that commissions are negotiable across the board . But I think we're going to see we saw a trend for a lot of years with , you know , 6% was kind of what it was . So you know , seller's agent was getting 3% , buyer's agent was getting 3% . We're going to see a huge drop in that .

Speaker 1 7:18

I think so too .

Speaker 2 7:20

I think a lot more agents are going to be okay at 2% .

Speaker 1 7:24

They're going to start , yeah , yeah .

Speaker 2 7:27

They're going to start competing , but if the seller's willing to cover it , they're going to be content with 2% .

Speaker 1 7:34

I agree , moving forward .

Speaker 2 7:36

It's going to become more of a trend , for sure .

Speaker 1 7:38

Because the sellers are even going to say well , I know I can do this .

Speaker 3 7:41

And I've heard they did that Absolutely Kind of the same thing they did with the fees anyway to begin with .

Speaker 1 7:46

But yeah , I think we'll see a lot of pushback from sellers in 25 .

Speaker 3 7:51

For sure .

Speaker 1 7:52

It's going to be interesting and again it's . It's all . It's all about the bottom line at the end of the day . So market shifts ? We've seen such a roller coaster since 2020 . Oh my gosh . Um I I do think I saw a forecast for 25 the other day . It looks like the average sale price in the luling area is going to creep up a bit , yeah , which I think is a good sign of a stable market yeah .

Speaker 1 8:22

I mean , we're not gonna hit bottom , we're not gonna peak like we did in 2020 now but I think we're gonna get back on this normal trend of rising home prices yeah , as they normally would over the years . So next year we'll be looking at higher price points maybe . Hopefully more buyers , more houses and to a balanced market . Yeah , would be nice , but I guess that's also going to depend on insurances and interest rates as well yep so 2025 is a open book right now . We will start writing the pages in a week and a half I've heard so many different opinions on what's happening in 2025 .

Speaker 2 9:07

So I think it'll be . It'll definitely be interesting . I've heard some people say the interest rates are going to be up in the 10 and 11% .

Speaker 3 9:16

Oh gosh you heard that .

Speaker 2 9:17

Oh yes , oh man , not that I believe it . I really I don't feel like that's a thing , yeah , or that that's gonna happen . But I mean , I've had , I've seen some TikToks where the doom and gloom the doom and gloom , yes , and it's like oh gosh , yeah .

Speaker 2 9:35

So you know , I think it's still gonna make for a an unusual , you know position for a buyer or a seller to be in , because it's one of those I don't know what's going to happen . Is it a good time , is it not a good time ? And you know , I think it's yeah .

Speaker 1 9:50

I think I think you're right . I mean , we talked about is it better to rent in this market or not , and I saw an article the other day stating just that . It's like , oh wow we just did a show on this and it said in order for things to be , I guess , more balanced in the market where it comes to should you rent or should you buy , the rates would have to come down significantly . I don't think they're going to do that .

Speaker 1 10:15

I think , we're going to probably end up in that four and a half to five and a half yeah . I mean , that's where it was when we bought our house in 15 .

Speaker 3 10:23

Yep .

Speaker 1 10:23

So it makes sense , I guess , but we didn't have the increasing insurances . That's the other side of it . That's the kicker .

Speaker 3 10:33

Yep .

Speaker 1 10:34

So is it a good time to buy ? Was the next topic we talked about um .

Speaker 2 10:41

It depends it's situational situational that's basically what the recap was . I mean , it just really depends on your specific situation . We still see a lot of investors coming in and doing their thing . Um , you know cash buyers are still very active . Yes , um , you know , that part is is happening because , like we kind of just talked about , we really I mean the price points , the values of these homes are holding and they're able to resell or make rentals or , you know , they're still making solid investments right so I think that's um we'll see more of that .

Speaker 2 11:18

I think we'll definitely see more of that into 2025 , for sure .

Speaker 1 11:21

Yeah , definitely more foreclosures . We have a few coming ourselves yeah . So our listing's coming up soon . So we know there is some volatility on that side of the market , but I feel like that's also just a catch up from 2020 when all the moratorium .

Speaker 2 11:39

Everybody was overbuying . And Well , not only that , the moratorium , oh yes , like they wouldn't foreclose on property .

Speaker 1 11:45

So I think there's a lot of holdover from 20 and 21 finally coming through , plus the new ones . That would have been your normal . So , we might see a little influx of foreclosures . Nothing like 08 , 09 .

Speaker 2 11:59

No , I don't think so .

Speaker 1 12:01

But we will see them . I mean , I've noticed a few around here with signs on the doors and we know what that means or multiple lockboxes on the doors .

Speaker 3 12:12

We know what that means , yeah .

Speaker 1 12:14

So renting in today's market we just kind of touched on that a bit just now . I mean , it's situational again . But if you are a first time buyer and you're really struggling with that note , what that ?

Speaker 1 12:30

note looks like and do you have enough of a down payment to make that note ? Less rent for a year ? It's not the end of the world . So many people rent and so many people like to rent .

Transitioning Into Real Estate

Speaker 1 12:43

But it's definitely a transition period . Like , don't skip that transitioning period . Like everybody wants to start at A and then already get to .

Speaker 3 12:52

Z .

Speaker 1 12:53

Like enjoy the journey of it the getting used to it part . Stop being in such a rush .

Speaker 2 12:59

And sometimes it's cheaper .

Speaker 2 13:02

Yes and it's cheaper Than it is to hold a brand new insurance policy or cover . I'm sorry , I have to sneeze . Bless you . Excuse me , bless you Unscripted . But sometimes for these newer homebuyers with the higher interest rate , you have an investor that has a rental property that probably purchased it when interest rates were super low . Yes , the insurance has probably impacted them , but they don't have an abnormally high house note on it , or some of them don't have a note at all . But if they do have a note on it , they're able to rent it out and it still be um , they still make some money off of it but still be affordable for the tenant .

Speaker 1 13:45

so you know sadly , as as sad as it is it sometimes it's a better situation , it's cheaper it's cheaper and and it's it's a , it's a good way to feel out owning a home .

Speaker 3 13:59

Yeah .

Speaker 1 14:00

Did you like renting ? Did that scare you ?

Speaker 2 14:03

Could you afford the utilities , the upkeep ?

Speaker 1 14:06

What did you feel ? Or did you move into it slowly , get used to it , and then you're like you know what ? Now I'm ready to buy .

Speaker 3 14:12

Yeah .

Speaker 1 14:13

It's time . Yeah , and that's the typical transition . I think everybody's just in a hurry these days . Slow down , it's okay . Buyer's market versus seller's market .

Speaker 2 14:26

We watch that go up and down .

Speaker 1 14:28

Like within weeks . Oh my gosh From oh , it's a buyer's market . Oh , it's a seller's market . Oh , it's back to a balanced market . Look , I'd be happy with a balanced market from here until I retire yeah great right just be , normal right like why I mean these peaks and these lows . I mean , can we just keep it even keel ? Right , that'd be great yeah but I mean , that's not gonna happen yeah , I mean the world itself is just so crazy .

Speaker 2 14:58

Up and down .

Speaker 1 15:00

Back to doom and gloom , tick-tock . But yeah , I think we're moving back and forth between balanced buyers and sellers . It just depends on what area you're looking in . I was listening to something or watching something the other day . Wherever there's a lot of new construction , you're seeing a little bit more sales because we still have a housing shortage .

Speaker 3 15:23

Yeah .

Speaker 1 15:24

So I was like man . You know they're super busy over there . I forget where it was . It might have been on the North Shore somewhere , but they're constantly putting out houses .

Speaker 3 15:32

Oh , Baton Rouge too , oh yeah .

Speaker 1 15:33

Constantly putting out homes , these giant neighborhoods . Yep putting out homes , these giant neighborhoods yep , and here I guess maybe that's why we're moving a little bit slower . We lack some new construction and yet we're still . I mean , we're on the south shore , we're still fighting insurance so all of that plays into each other . But I mean , they are putting up houses in the new neighborhood , yeah , but there's still a lot left to go .

Speaker 3 15:57

There are Yep .

Speaker 1 15:59

So , yes , so end of the year , wrap up . It's been fun .

Speaker 2 16:04

It has .

Speaker 1 16:05

We , you know , we've been doing this job , this real estate job , for years now , and it's definitely a career that I didn't really plan on young in life , but then got into and I really have come to love it and appreciate it .

Speaker 2 16:34

The people- that we meet the people that we work with , the lives that we change , I think , have a really great impact on us , on the community , the relationships that we build , the relationships with our clients , and not just clients , lenders , title attorneys , inspectors I mean we really do . I mean we come in touch with so many different things and we build relationships , and that's what we should be doing .

Speaker 1 16:56

That's what we should yeah .

Speaker 2 16:57

It's not just a sale . It's not just a sale , it's not just a transaction , it's . You know , these are big , monumental steps in everybody else's lives .

Client Relationships in Real Estate

Speaker 2 17:09

And so I think you know , in the spirit of Christmas , yes , yes , I mean we enjoy taking care of our clients .

Speaker 1 17:19

We when we say we put our clients first , we really mean it and we don't mean it just for closing day or the day you call us and want to go see houses . Like we think about our clients daily . Sometimes , I mean , we work with people for so long . We talk to you every single day during transactions .

Speaker 2 17:38

We don't . We don't want the transaction to end and it'd be like a breakup .

Speaker 1 17:41

Right , I know , I said that to a client once . I was like oh my gosh .

Speaker 2 17:44

I feel like we're breaking up . I feel like we're breaking up .

Speaker 1 17:46

We used to talk every day and now we don't . And I would check in with them , Like when I I've tried to make it a point . When I think about someone , I try to make it a point to reach out .

Speaker 2 17:56

And I think that's going to be a big goal for me for 2025 is continuing relationships beyond transactions Because , truly , you do , you build a relationship like I mean , you really get into the nitty gritty , you know everything about these people .

Speaker 2 18:10

You know how they act , their personality , Not only that but you know their financial situation , their financial situation I mean you know everything , you know their families , you know everything , you know their families , you know they're you know everything and so you know , I think 2025 is definitely going to be , and we started working on that already . We've been sending postcards and really just trying to to stay in touch with our community and our our clients , and you know , celebrate different holidays , birthdays and , um , I think that's going to be moving that into 20 .

Speaker 1 18:40

Moving that into 2025 and keeping that super important ? Yeah , I think so too . I think , making sure we are always connecting with our I won't even say past clients like once they're a client , they're a client for life or the community . Yeah , so we always want to keep in touch with everyone , do what we can in the community for our clients , for the new people calling us like you know we're we're excited to work with you .

Speaker 3 19:06

This is what we do yeah , and we love it yeah so , um , I guess that'll bring us to a close .

Speaker 1 19:13

So this is our 2024 peace out . Yes , our seventh episode , our 2024 wrap up , um , our last episode of the year yeah so we will see everyone back in 2025 . This is the move worthy podcast , with myself , jenny lindley and lauren jones , and together we have the experience to move you forward .