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3 Things to Expect in the Housing Market in 2018

Here are the current trends and how to tap them to grow your business

The real estate industry is booming and is the healthiest it’s been in the last 30 years. Home prices and sales are close to where they were during the housing boom — but there is none of the drama involved because of the more stable economy. So what’s in store for this year as the industry looks ahead?

Sales and interest rates will likely increase

The National Association of Realtors (NAR) are predicting that sales will increase by nearly four percent in 2018. In addition, interest rates are expected to move up as well — but they’ll still be considered low, compared to levels historically seen. So If you have qualified buyers who are on the fence about purchasing, you can use this opportunity to encourage them to buy before mid-year so they can take advantage of the lower interest rates.

Millennials might continue to put off buying a home

The percentage of first-time buyers dipped a bit in 2017, according to NAR. One of the reasons is that many millennials are feeling financial pressure from, coupled with debt relatively low wages and student loan debt, which makes it hard for them to put a down payment on a home. Millennials who may be qualified and interested in purchasing now find it difficult to do so. In more expensive markets, quite a few millennials feel squeezed out of the market and unable to purchase even a starter home.

Low inventory, especially for new homes

Even though there may be a 3.9-month supply of homes, according to the most recent monthly report from NAR, we’re approximately 250,000 units less than what is necessary to meet the 50-year average annual demand level for new construction. The home pressure is sure to be felt more strongly in certain markets, but the overall speed of the housing market will act as a stabilizing force. There is good news in that single-family housing starts are projected to increase more than nine percent in 2018, according to the U.S. Census Bureau, which will ease pressure in many areas.

How can you leverage these trends?

Regardless of what’s going on in the market, here are three things you can do now to serve the clients in your database:

Connect.
The clients in your database are a precious commodity. Take the time to check in and connect with them. You can offer them a free comparative market analysis of their home and remind them you’re never too busy for referrals from them. The more you nurture your relationships with your clients, the fuller your pipeline of leads will be. And if you need a healthier lifeline, iLeads is a fantastic resource for leads that convert.

Serve.
By giving your clients the highest level of service, you’ll definitely stand out from the competition in your market. After you initially speak with a client, write them a personal note to say you enjoyed catching up with them. While this seems like a small gesture, has a big impact on your clients.

Learn.
A true professional never stops learning — they always continue to expand their knowledge and skills, even when they are at the top of their game. Because they’ve committed to learning, they’re able to achieve success from the get go. You should focus on sharpening your skills this year in a few important ways. Read books from influential business people and thinkers, sign up for seminars, listen to podcasts that can help you polish your skills and knowledge and be sure to network with other top producing real estate professionals.
2018 is yours for the taking so get out there and start growing.

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