I recently attended the 2013 New England Realtor Conference, hosted this year by the Connecticut Association of Realtors. The conference, which drew more 200 real estate professionals from all over New England, focused on education and an assessment of the housing market. For the first time in recent memory, the market is improving.

I felt a renewed sense of optimism; I noticed a confidence among the region’s Realtors, and a sense that – finally – the housing market is getting back on track.

Today, we’re seeing more buyers than homes on the market, bidding wars ensuing, and homeowners who are patiently – and optimistically – waiting for their home values to rise. All these key indicators demonstrate that the New England real estate market is showing signs of recovery.

Throughout New England the inventory of existing homes is down. At one time, buyers had their pick of properties, but with the recovery showing signs that property values may once again be on the rise, owners are resisting the urge to sell immediately. This is excellent news for the New England homeowner, but presents an issue for home buyers. For the first time in years, homes are being sold for more than the asking price, typically the result of a bidding war; however some buyers – first-time buyers specifically – may be having trouble entering the market.

First-time home buyers and trade-up home buyers who don’t have the same finances and capital as those already in higher-value homes, are now facing limited inventory with fewer affordable properties. While this problem still shows that buyers are ready to buy and homeowners are able to sell – and make a profit on their property – it is making the New England buyer’s situation more competitive and more difficult.

As we see property values and the number of eager home buyers increase, it would be natural to conclude that the market has recovered. While the things we’re seeing are excellent news for New England real estate, I, like most Realtors, remain realistic regarding the current state of housing, and acknowledge that historically low interest rates are helping to boost the buying market. The general realization among the Realtors I spoke with is that the housing market will be affected should the rates begin to climb.

Financing Challenges

Despite historically low interest rates, the realities of an economy that is just now on the mend are most evident during the loan application process. Home financing can be a challenge for many buyers. Banks are lending more conservatively and are working to comply with new loan requirements and standards. But there are ways to work within the current credit environment to make the process easier for your clients.

Getting to know your local banks and local lenders can greatly help the loan process for your buyers. Encouraging buyers to speak with a lender from the very start of their home-searching process will set both you and the buyer up for success down the road. Get to know your bank on a personal level, introduce yourself to the manager and mortgage loan officer, and become comfortable with the services they offer. The education they can provide to your clients is invaluable during a process that can be very intimidating – especially for first-time buyers who are unfamiliar with the home buying process. A lender you trust will give you an added resource to offer your buyers.

Seek out banks that offer local lending and localized decision-making on mortgage loans. By providing potential clients with a knowledgeable, resource you’re ensuring they’re comfortable during the mortgage process and making educated choices on the homes they request from you. By helping clients successfully navigate the tight credit market, you’re helping them to recognize – and recommend – you as a savvy partner and able adviser for all future real estate needs.

Malcolm Hollensteiner is director of retail lending sales and products for TD Bank.