Since the start of the pandemic, the biggest challenge that the residential real estate industry faced had been a lack of inventory. The number of listings in many markets were at historic lows, and it wasn’t uncommon for listings to get bombarded with multiple offers almost as soon as they hit the market. This lack of inventory, coupled with record low interest rates and out-of-control inflation, continued to drive up pricing. Since only one buyer “wins” any bidding war, dozens of people left each negotiation feeling slighted. With homes selling at record prices within a matter of days, and with so many potential buyers continuing to lose bidding wars, real estate professionals were screaming from the rooftops, “LIST YOUR HOME NOW”. They knew that these unprecedented market dynamics created a seller’s market unlike anything they had ever seen. The veteran brokers were all too familiar with the cyclical nature of the business and they were well aware of the fact that these conditions would not last forever. Even though inventory was so low, the increased prices along with the speed of each transaction, resulted in many brokerages having their best year ever in 2021. Within the past few months, headlines were published with bullish news of record breaking years in the brokerage industry including:
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