Real estate pros adapt in evolving environment

BOULDER — “This is essentially the first or second inning,” National Association of Realtors chief economist Lawrence Yun said, comparing the current conditions for residential real estate professionals to the early part of a baseball game.

In this instance, Yun, who gave the keynote address Thursday at BizWest’s Boulder Valley Real Estate Conference, was referring to new rules on commissions that arose as a result of a recent settlement in a lawsuit against NAR and real estate brokers with Home Services of America and Keller Williams. But he could have been talking about a number of aspects of the real estate business that require pros to adjust their swings to curveballs coming their way.

Rising interest rates have thrown the industry for a loop, he said. “Higher interest rates and lack of inventory has really killed off some of the business activity” over the last few years. 

“We’re not going to get back to (the) level” mortgage rates were for years and years prior to 2020, Yun said. 

The industry is reacting to “very depressing data” related to age and homeownership as young people continue to delay buying their first homes, he said. “If you want to have wealth in America, you have to own a piece of America. …The sooner you get into the market, the earlier you can take advantage of wealth possibilities.”

When Donald Trump retakes the White House, it will certainly affect the real estate industry and the broader economy.

“Some economists are expressing deep concerns about tariffs,” Yun said, while the stock market is responding positively to the election results. 

The national debt and deficit remain concerning, especially for those in businesses that are tied closely to interest rates.

“We are four years out from COVID but we are still spending like we are in some kind of emergency,” Yun said. 

on Facebook on LinkedIn