What Affects the Real Estate Market?
Lisa Atkinson is a well-known real estate agent and has been working in the industry for 20+ years. She is primarily based in Chase, BC. However, she also serves the Shuswap region and Kamloops. She has so much experience working in the industry that she knows the ins and outs of the real estate market. Buying your first home can be a very intense and stressful experience. That is why I decided to have a sit-down interview with Lisa, so she can explain why you have to be aware of your surroundings when purchasing a home.
When looking at purchasing a home, you have to be aware of what is going on in the world because everything affects the real estate market, whether it be the stock market, Covid-19, or natural disasters like forest fires (L. Atkinson, personal communication, October 11, 2021). “When the stock market crashed in 2008 nobody was buying anything because it was like the world stopped,” says Atkinson (personal communication, October 11, 2021). So many people paused on buying houses because they wanted to see what the stock market was going to do to the real estate market, whether the prices would plummet or rise drastically (L. Atkinson, personal communication, October 11, 2021). Atkinson (personal communication, October 11, 2021) adds, the reason the stock market has such a big impact on the real estate market is that it affects the interest rates and whether they are going to rise or not. It caused a see-saw effect between high prices & low interest, and low prices & high-interest rates (personal communication, October 11, 2021).
Right now the housing prices are really high but the interest rates are extremely low, however with what is going on in the world right now due to Covid-19 the government needs to be able to pay for CERB, EI, and other costs, so they are wanting to increase the interest rates (L. Atkinson, personal communication, October 11, 2021). When high-interest rates go up people are more hesitant to buy because it takes away borrowing power, so you aren’t able to borrow as much money when you are paying more interest, so you have to buy a cheaper house (L. Atkinson, personal communication, October 11, 2021). Atkinson states that in 2008 when the stock market crashed, she did not sell a single house for 5 months, which is extremely stressful because her pay was based 100% on commission (personal communication, October 11, 2021). When buying your first home you want to be very aware of what is going on in the world, because everything affects the market.
So how does the stock market affect buyers and sellers? Atkinson explains that it is dreadful for both. sellers want to sell but they are both hesitant. Sellers do not want to reduce their listing price because they feel as though they failed (personal communication, October 11, 2021). A market like today’s is a win for sellers. Due to Covid-19, the prices have skyrocketed, which makes it amazing for sellers, but for buyers? Not so much. This is especially awful for first-time homebuyers because they have nothing to sell to be able to buy in this market. Atkinson’s advice for first-time buyers, Millennials, and Generation Z? “Save your freaking money, do not waste it on stuff. If you can put away money in your savings from when you are young, buy a house as fast as you can. It’s the best thing you can do. Real estate is supposed to double every 10 years. Even if you overpay right now, 10 years from now you are going to make money if you sell. You do not have to like it or even live in it, rent it out. Save your money and buy a house ASAP” (L. Atkinson, personal communication, October 11, 2021).
Atkinson has shared some valuable information. Being aware of your surroundings and keeping up with what is going on in the world plays a huge role in buying your first home. Buying a home does not consist of just the housing prices. You want to stay up to date with the interest rates as well. Interest rates are such an important factor in purchasing a home. With this amazing advice from Atkinson to first-time homebuyers, Millennials, and Generation Z will have all of the information necessary to get started in the real estate market. Save your money and buy a house as soon as possible, because in 10 years you are going to be making money!
Detailed Outline: 1. Intro music (calming yet intreguing) 2. Introduction (Who I am and who I will be speaking with and about what) 3. Transition music (Old school news report) 4. Speaking with Lisa -How long have you been in the real estate industry? -Do you think you would be mmore succesful now, if you started when you were younger? -What advice do you have for first-time home buyers? 5. Thank yous 6. Outro music (same as intro)
Interview Questions: How long have you been in the real estate industry? Have you always worked for the same real estate company? Do you think you would be as successful as you are now if you started when you were younger? What advice do you have to give to millennials? Why did you choose real estate as a career?
Goal: The goal of this interview is to learn more about Lisa Atkinson and her career, and listen to what advice she has for first-time home buyers.
Audience: Millennials, Gen-Z, First time home buyers.
Core Information: How Atkinson started in the real estate business, why she chose real estate, and advice.