Understanding the market
is crucial for agents to serve their clients effectively. From housing values
to mortgage rates, all factors matter when it comes to finding the right home
for a client’s budget and needs.
Pinpoint pricing is critical for a client who wants to buy or sell property. Discover ten facts every real estate
agent should know about the current housing market.
Housing Prices Are Increasing
Over the past few years, housing prices have
steadily increased each year. Sellers
expect top dollar for their homes while buyers face the challenge of covering
rising costs to own a house. As a result, buyers might become more negotiable
about features and locations to be able to purchase properties. Agents must
keep a finger on the pulse of housing prices to best advise clients.
Mortgage Rates Are Rising
Now buyers are facing a double challenge, with
rising mortgage rates and increased housing costs across the nation. Savvy agents connect with well-informed
bankers and mortgage companies to provide the latest information to their
clients. Helping people find a mortgage and get pre-qualified is the first step
to making a successful sale.
Make Room for Millennial Buyers
As the Gen Xers and boomers get older, millennial
taken over the market. Most buyers are millennials, and agents need to
understand the mindset of this growing target audience. Millennial buyers are
concerned about energy-saving and green features in a home. They search for
homes online, want a carefree lifestyle, and focus on a quality home in a
convenient location rather than a large one that is further from shopping and
Think About Supply and Demand
There continues to be a limited supply of houses
with desirable features. As a result, the focus for agents is still based on
supply and demand. In the current housing market, buyers might be willing to
compromise on a fireplace or location near highways, to find a house that fits
into their other criteria. Agents who help clients think about other
possibilities are the most profitable in these market conditions.
Homeownership Is On The Rise
Though home prices and mortgage rates continue to
increase, homeownership is on the rise. More people are owning homes rather
than renting them. People continue to want the American dream of owning a
house. And, consumers are discovering it often costs less per month to pay a
mortgage than it does to cover rent. Plus, rental costs increase each year,
while mortgage fees are more predictable.
Rentals Are Expensive
After the housing crash In 2008, the cost of rentals
increased as more people needed temporary housing. The price of rentals
continues to be expensive, driving people to save the money to purchase a house
rather than rent one. While agents can still make money from listing
apartments, the ultimate goal is to help as many people as possible qualify to
buy a home.
Fewer Homes Are Being Built
New construction is slowing down due to the
increasing cost of land, labor shortages, and cumbersome local regulations. As
a result, consumers are looking to older homes that are newly renovated with
cutting-edge appliances and fixtures. Encourage sellers to invest in updates to
make their homes more desirable. Encourage buyers who prefer new construction
to view houses that are totally renovated.
Large Homes Are Less Popular
There was a time when bigger was always better when
it came to housing. Now buyers are cautious about purchasing more house than
they need. Consumers consider expenses such as utilities and maintenance
associated with owning a big home. Agents can appeal to buyers by showing
smaller homes that are move-in ready and have modern amenities, such as
energy-saving lights and appliances.
People Search for Homes Online
The majority of potential homebuyers go online to
find available properties. While some still check local ads and drive around
looking for “For Sale” signs, most people hit the internet to search for houses.
Remember to keep search engine optimization (SEO) principles in mind when
writing listing descriptions and tagging photos of the property. Buyers should
be able to easily find an agent’s listings, including during mobile searches.
Add localized keywords to attract the right target audience. Better Homes and
Gardens® Real Estate agents use social
media to reach
out to more buyers and other key players.
Bring It To The Table
Regardless of the current housing
market, each side
must bring it to the table. Pre-qualified buyers and sellers concessions are
still terms that move deals forward. Top agents discuss the need to negotiate
or sweeten the deal to get the right conditions. Agents who make everyone happy
with minimal hassles are sure to get referrals – and repeat business – in the
Use these ten facts
about the current housing market to advise
clients who want to buy and sell property.
Well-informed agents help clients make educated choices about one of the most
significant investments of a lifetime. And, happy clients are sure to spread
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