As
we
celebrate
Independence
Day
this
year,
it’s
natural
to
reflect
on
the
American
Dream
of
homeownership.
This
dream,
however,
seems
to
be
facing
challenges.
Fewer

real
estate
transactions
are
occurring,
and
many
are
questioning
why. 

Is
it
due
to
interest

rate
volatility,
low
consumer
demand,
or
a
reluctance
to
sell
homes
due
to
the
lock-in
effect?
While
the
demand
and
the
dream
persist,
their
attainability
is,
increasingly,
under
scrutiny. 

As
Gen-Z
enters
the
housing

market,
many
say
they’ve

given
up
on
buying
a
home.
Some
blame

millennials
and
some
blame
boomers,
while
others
say
that,
in
fact,

boomers
are
the
ones
who
faced
the
toughest
headwinds
when
entering
the
housing
market.
There’s
a
lot
of
finger-pointing
and
very
few
solutions.

This
article
explores
these
issues
and
underscores
the
role
of
real
estate
and

mortgage
professionals
in
guiding
clients
through
these
turbulent
times.

Current
market
challenges

The
real
estate
market
is
currently
characterized
by
a
complex
interplay
of
factors:

• 
  Interest
  Rate
  Volatility:
  Fluctuating
  interest
  rates
  have
  made
  it
  difficult
  for
  potential
  buyers
  to
  predict
  the
  cost
  of
  financing
  a
  home.
• 
  Low
  Consumer
  Demand:
  Economic
  uncertainty
  and
  high
  living
  costs
  have
  
  dampened
  consumer
  enthusiasm.
• 
  Reluctance
  to
  Sell:
  Many
  homeowners
  are
  hesitant
  to
  sell,
  either
  waiting
  for
  better
  market
  conditions
  or
  uncertain
  about
  finding
  a
  new
  home
  themselves.

Despite
these
challenges,
the
dream
of
homeownership
remains
alive.
The
question
is
whether
it
is
becoming
less
attainable
or
merely
obscured
by
market
noise
and
confusion.

The
role
of
real
estate
and
mortgage
professionals

In
times
like
these,
the
role
of
real
estate

agents,
brokerage
owners
and
lenders
becomes
even
more
critical.
Our
duty
is
to
enable
and
inform
clients,
helping
them
navigate
the
complexities
of
the
current
market.
We’ve
weathered
difficult
markets
before,
and
history
shows
that
the
market
will
eventually
pick
up,
regardless
of
interest
rates
or
other
factors.

Consumer
sentiment
and
market
perception

Consumer
confidence
is
currently
low
due
to
the
high
cost
of
living
and
perceived
barriers
to
homeownership.
However,
this
doesn’t
mean
the
dream
is
out
of
reach.
As
industry
professionals,
we
have
a
responsibility
to
foster
belief
in
the
possibility
of
homeownership. 

This
is
not
about
selling
a
fantasy
but
about
highlighting
realistic
paths
to
achieving
this
goal,
even
if
the
process
has
changed.
It
may
mean
drilling
down
and
familiarizing
yourself,
and
your
potential
clients,
with
the
ins
and
outs
of
credit
repair,
loan
pre-qualification
and
pre-approval,
and
even
basic
personal
finance
and
budgeting.
It’s
not
beneath
us
to
do
this
work;
it’s
a
vital
part
of
helping
inspire
a
renewed
belief
and
commitment
to
the
positive
potential
of
homeownership.

Shaping
the
narrative

The
messaging
we
put
out
as
professionals
significantly
impacts
consumer
perceptions.
Too
much
talk
about
market
disruptions,

commission
lawsuits,
changing
forms,
and
exclusive
buyer-broker
agreements
can
overwhelm
potential
buyers.
They
begin
to
perceive
homeownership
as
an
insurmountable
financial
burden,
especially
with
the
common
misconception
that
they
need
a
20
percent
down
payment
plus
the
potential
for
additional,
out-of-pocket
commission
costs.

It’s
crucial
to
reframe
our
communication
to
emphasize
that
homeownership
is
still
attainable.
Yes,
prices
are
higher,
but
this
also
means
homes
are
valuable
long-term
investments.
Historically,
interest
rates
are
not
as
extreme
as
they
seem,
and
with
proper
guidance,
potential
buyers
can
still
find
manageable
financing
options
with
lower
down
payments,
down
payment
assistance
and
the
potential
for
seller
concessions
to
help
cover
agent
commissions
and
closing
costs.

Embracing
change

The
future
of
the
real
estate
market
is
inevitably
different
from
the
past.
Change
is
constant,
and
as
professionals,
we
must
adapt.
By
embracing
new
ways
of
thinking
and
running
our
businesses,
we
can
help
clients
achieve
their
dreams.

My
friend,
Rene
Rodriguez
says
that,
“leaders,
managers,
agents,
and
loan
officers
need
to
lead
by
offering
new
narratives
of
opportunity
that
see
through
the
irrational
fear
and
move
us
all
towards
progress.”

It’s
likely
that
many
will
have
a
mental
roadblock,
preventing
them
from
entertaining
anything
other
than
what
they
have
known
before.
This
“new
narrative”
may
be
met
with
hesitancy,
skepticism,
or
resentment.
Rene
offers
the
following
advice,
“There
are
two
sides
to
the
narrative
conundrum.
One
side
is
that
of
the
leader
proposing
the
narrative.
The
other
is
the
one
receiving
the
narrative.
Some
people
find
themselves
with
a
mental
block
of
old
stories
and
narratives
playing
out
in
their
brains.
They
project
those
onto
current
markets
which
may
make
them
assume
the
worst.
This
whole
process
begins
with
self-awareness
and
opening
one
self
up
to
the
possibility
that
there
may
be
new
ways
of
looking
at
things.
Listen
to
the
words
and
the
narratives
that
come
from
those
who
are
more
successful
than
us.
Those
who
are
doing
well
and
difficult
markets
,
speak
differently
than
those
who
are
performing.
Sometimes
it’s
that
easy.“

Just
as
children
once
dreamt
of
owning
homes,
today’s
aspirations
may
include
different
symbols
of
success,
like
a
Cybertruck.
However,
the
underlying
desire
for
stability
and
investment
in
the
future
remains
the
same.
It’s
up
to
us
to
tap
into
that
desire
and
show
consumers
that
it
is
still
meaningful,
attainable
and
worthwhile.

This
Independence
Day,
let’s
renew
our
commitment
to
the
American
Dream
of
homeownership.
By
reworking
our
messaging
and
embracing
change,
we
can
help
clients
navigate
the
current
market
and
realize
their
dreams. 

Homeownership
remains
a
worthy
and
achievable
goal,
providing
long-term
benefits
and
a
sense
of
the
independence
we
celebrate
this
July
4th.
As
real
estate
and
mortgage
professionals,
we
have
the
power
to
make
this
dream
a
reality
for
many.

Troy
Palmquist
is
the
Director
of
Growth
for
eXP
California.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected]

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