If you’ve ever dreamed of a career in real estate, the fourth quarter of 2023 may be one of the greatest times in history to start getting your real estate license. While there is no shortage of negative news in the housing market about inventory shortages and plummeting mortgage applications that suggest a recession is imminent, here are five major reasons why 2024 will be a great year for real estate and why now is the perfect time to get ready for it.
1. January is the busiest time of the year
As the calendar flips to a new year, the real estate market comes alive in January. Historically, this month has proven to be one of the most active periods for both buyers and sellers. It’s a time when people set fresh goals, including homeownership, and are eager to make a change in their living situation. This surge in activity provides newly licensed agents with a wealth of opportunities to jump into the market with enthusiasm. It’s your chance to get in on the action and start building your real estate career from day one.
2. The licensing process takes 2- 3 months
Getting licensed to work in real estate doesn’t happen overnight. The process typically takes approximately 2-3 months. This includes fulfilling the educational requirements, passing your state’s licensing exam, and submitting the necessary paperwork. By starting the process now, you position yourself perfectly to capitalize to hit the ground running when it’s busy at the first of the year.
3. A recession will lower interest rates
Demand is down now, but market experts are anticipating a mild recession soon, which will force the Federal Reserve to lower interest rates. As interest rates fall, it can make homes more affordable for buyers. The Mortgage Bankers Association anticipates this will spark a huge housing rebound and mortgage origination volume to surge 19% next year. It’s the perfect time to guide buyers through the process and secure their dream homes while the cost of borrowing remains attractive.
4. Huge pent-up demand
Even though real estate sales have been down in 2023, there is never a shortage of demand for real estate property. Everybody wants to own a home. Most people are just being forced to sit on the sidelines until the market conditions improve. According to Bank of America, there is a whopping $5.3 trillion sitting in money market funds. When interest rates begin dropping next year, there will be a flurry of activity and people lining up to buy.
5. Biggest discounts at real estate schools
Real estate schools are seasonal with their promotions and offer the best deals in the fourth quarter. On top of that, they have been feeling the pinch this year along with the rest of the real estate market. As a result, they have been giving out bigger promotions and lowering their prices. The cost to complete your real estate courses has never been lower!
While the market may not seem great right now, the stars are aligning for a remarkable year in real estate next year. Since it takes a few months to get licensed, if you start now, you will be in a perfect position to catch the momentum going up when the market rebounds.