The Real Estate Industry has been all over the news this year, first because of the dip in home sales as mortgage rates continued to rise, and now with the news of the verdict about the $1.8 billion commission lawsuit.

While many Realtors have struggled to maintain sales in a year riled with rising mortgage rates and low inventory, this verdict is yet another blow and could result in a mass exodus of inexperienced Realtors in the industry.

I am an optimist and as a rule, I look for the bright side at every change that impacts both my life and my work, and while many Realtors are stressed over the commission verdict, I see this as an opportunity to clean house and raise the bar in our industry. Let’s face it, we are helping people with the
biggest purchase or sale that they will make in their lifetime, and we need to make sure that Realtors are true professionals and offer a value for what they are being paid.

A good CPA is worth their weight in gold, and a Realtor should be as well. I encourage the industry to rise up to the challenge and increase the requirements to become a licensed Realtor and to maintain a license.

Mortgage rates are also in the news again as they drop to just under 7.5% again in response to an uptick in unemployment rates. According to an article in Inman News, “Mortgage News Daily’s lender survey showed rates on 30-year fixed-rate mortgages falling 15 basis points Friday, to 7.36 percent,
down 67 basis points from a 2023 high of 8.03 percent registered on Oct. 19.”

This news may stimulate home sales in the last quarter of 2023, as they seem to have stalled in reaction to the 8% interest rate climb, especially as inventory levels seem to have increased as well. Today’s inventory levels in the Energy Corridor are 3.2 months’ supply; 1.9 months’ supply in Katy; and
3.6 months’ supply in Memorial.

A lot of the inventory is stale inventory rather than new listings as sellers continue to hang onto to their lower interest rates. Just remember the phrase, “Marry the House, and Date the Rate.” As interest rates drop and inventory increases, there will also be more competition as more buyers get off the fence and look to buy homes again.

Whether you are looking to Sell or Buy a home, look to a professional Realtor for guidance.