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: