The Beer School of Real Estate is sponsoring the 30 hour Post Licensing course for new real estate brokers and will be held at the Elkhart County Board of Realtors Office classroom on March 2nd & 3rd and 9th & 10th. 7 1/2 hours each day with an emphasis on Internet Marketing. How to “Target” market age groups on the internet. All brokers who have received their license within the past 24 months are invited to attend. The cost is $315 and includes all materials; 2 text books and other material. Please contact us and/or sign up on our web site; Beer School RE.com. We look forward to seeing our former students and welcoming new students to our Beer School family.
In 2018, the challenge for the housing industry will be balancing bursting demand with a severe shortage of supply, according to realtor.com®’s State of the Housing Union, released in-step with the U.S. State of the Union this week. As with 2017, first-time buyers will have the hardest time, with little in their price point.
“The macro-factors that have defined real estate in recent years—strong demand and weak supply—continue to set the tone for the industry,” says Joseph Kirchner, senior economist for realtor.com.
The issues? Builders have been burdened by construction costs and lack of labor, and have concentrated on higher-priced homes.
“Builders will need to focus more on homes geared for moderate incomes, partner with the government on initiatives to transform distressed urban neighborhoods and overcome labor shortages through a combination of workforce development training and pressure to ease artificial restrictions on the supply of labor,” Kirchner says.
The dearth of inventory made prices rise, but sales struggle in 2017, according to data from realtor.com. Appreciation was at an average 5.8 percent, while pre-owned sales eked out a 1.1 percent gain. Comparing blue and red states:
A factor of significance: tax reform. In 2017, 2.5 percent of blue state mortgages were over $750,000—the limit on the mortgage interest deduction (MID) under the Tax Cuts and Jobs Act, which will apply to loans obtained on or after Dec. 15, 2017. Only 0.4 percent of red state mortgages were over the threshold.
“The new tax law that caps the mortgage interest deduction and the deductibility of state and local taxes can be expected to impact the upper-end market in 2018—precisely how and the extent of which remain to be seen,” says Kirchner.
Around the bill’s passage, realtor.com researchers surveyed Americans on their attitudes toward homeownership in light of reform. More than one-third were “concerned;” a considerable group of homebuyers and sellers reconsidered their plans.
For more information, please visit www.realtor.com.
10 Percent and Falling: Housing Inventory Keeps Shrinking By Suzanne De Vita 10 Percent and Falling: Housing Inventory Keeps Shrinking Share This Post Now! Buyers are being challenged by diminished inventory and mounting prices, especially in areas with crisis-level supply, according to the December Zillow® Real Estate Market Report. Inventory is down 10 percent from last year—a three-year trend—and, in the buzziest markets, as much as 40 percent. Construction costs are exacerbating the issue, says Aaron Terrazas, senior economist at Zillow, who anticipates building will be concentrated in outlying suburbs this year. “On the supply side, the market is starving for new homes, but it won’t be easy for builders struggling with high and rising land, labor and lumber costs,” Terrazas says. “Aging millennials and young families may be able to find more affordable new homes for sale this year, but they’ll most likely be in further-flung suburbs with more grueling commutes to urban job centers.” Few homes are moving prices up—6.5 percent in the past year, to a median $206,300, according to the Zillow Home Value Index (ZHVI). Appreciation has been highest in San Jose, Calif., at 21.2 percent (a median $1,171,800), causing inventory to shrink 40.6 percent. In the largest metros: Zillow_Dec_17 Markedly, a mere 16.7 percent of analysts cited in Zillow’s 2017 Q4 Home Price Expectations Survey forecast home-building will pick up this year. In December, ground-breaking on new homes underwhelmed; builders, however, are confident in their prospects this year, according to the National Association of Home Builders (NAHB). Changes to the expected could come when the Tax Cuts and Jobs Act goes into effect, says Terrazas. “Tight inventory fueled by a tight labor market and low interest rates propelled home values to record heights in 2017, but the outlook is now much less certain,” Terrazas says. “Tax reform will put more money in the pocket of the typical buyer, but will limit some housing-specific deductions. Overall, this should increase demand for the most affordable homes and ease competition somewhat in the priciest market segments.” MORE: Tax Reform: Here’s What Could Impact Homeowners Most For more information, please visit www.zillow.com. DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at email@example.com. For the latest real estate news and trends, bookmark RISMedia.com.
As a student of history and the markets, I believe the real estate industry is the healthiest it’s been in more than three decades. Although sales and home prices are close to where they were before the housing boom, there’s more economic stability.
Overall, I expect the housing market to remain solid, led by a slight uptick in sales, the national economy and interest rates, and a small decrease in first-time buyers. Millennials, many of whom are feeling the pinch of student loan debt and relatively low wages, may find it difficult to purchase a home.
Many areas may be experiencing a slight squeeze on inventory; however, the speed of the market is good, which acts as a stabilizing force. With the economy expected to grow 2.7 percent by the end of the year and interest rates ticking up slightly, I anticipate that we’ll continue to enjoy a healthy housing market in the year ahead.
How does this translate for the average real estate professional? Here are three timeless strategies for success, regardless of the market:
- Invest in your relationships. Agents are spending a staggering amount of money on purchasing leads when their best leads are already in their databases. When you invest time into your relationships, you get it back in the form of referrals. Connect with past and current clients over the phone, with a personal note or even a monthly marketing flyer.
- Stand out with service. If you want to be great in business, become a great servant. It’s the small things—the unexpected extras—that help you stand out. After you’ve spoken with a client on the phone, follow up with a handwritten note. Show your favorite clients that you’re thinking of them by delivering a small, thoughtful gift to their home or office. People will be touched that you took the time to think of them, which will set you apart.
- Sharpen your skills. While sales skills are important, there’s more to a transaction than listing a home and negotiating on a client’s behalf. A true professional also has skills pertaining to listening, understanding and relating to clients, as well as business skills that help them generate leads and create a lasting business. When you take the time to develop your skills, you can serve your clients at a higher level and become the true real estate professional your market needs.
How can you boost your skills this year? Go to real estate-focused events and network with other high-achieving professionals. Also, focus on lead generation and continue to build relationships with the people in your database.
To reach your financial goals, it’s important to generate at least 40 percent of your leads within the first quarter. While that may sound intimidating, it’s not impossible. In fact, we’ve developed a program comprised of three productivity sprints throughout the year to help agents generate a large number of leads within a short amount of time by just leaning into relationships.
The American housing market will continue to thrive this year. Take the time to foster your relationships, deliver great service and sharpen your skills and you will build a strong business in the process.
Brian Buffini was born and raised in Dublin, Ireland, and immigrated to San Diego in 1986, where he became the classic American rags to riches story. After becoming one of the nation’s top REALTORS®, he founded Buffini & Company, an organization dedicated to sharing his powerful lead-generation systemswith others. Based in Carlsbad, Calif., Buffini & Company has trained over 3 million business professionals in 37 countries and currently coaches more than 25,000 business people across North America. Today, Brian’s a New York Times best-selling author and reaches over 1 million listeners a year through his popular “Brian Buffini Show” podcast.
For more information, pick up a copy of his latest book “The Emigrant Edge,” or visit buffiniandcompany.com.
For the latest real estate news and trends, bookmark RISMedia.com.
Millennials are not the only generation preferring proximity to restaurants and retail.
Americans born between the mid-1920s up until 1945—the “Silent Generation”—are also on the lookout for walkability. Fifty-five percent of members of the Silent Generation recently surveyed by the National Association of REALTORS® (NAR) favor neighborhoods close for commuting and/or walkability—not far off from the 62 percent of millennials surveyed who prefer the same. Both generations would live in an apartment or townhouse if it meant a closer commute and/or walkability, according to findings from the survey. Fifty-one percent of all of the adults surveyed, regardless of generation, believe quality of life is impacted by walkability.
The generations between millennials and the Silent Generation, however—baby boomers and Generation X—are partial to the suburbs. Fifty-five percent of both boomers and Gen Xers are okay with the trade-off: driving to establishments, recreation and work for a single-family home.
There are age- and gender-based interests, as well. When buying a home, younger women look for public transit and walkability more so than younger men, but both younger men and younger women seek short commute times, according to the survey.
All told, 60 percent of all of the adults surveyed would rather reside in a single-family home. Another 60 percent, though, would spend more to live in area with greater walkability. The majority of adults with children (another 60 percent, still) are interested in the larger acreage and square footage of the suburbs.
Infrastructure plays a role, according to the survey. Eighty-six percent of all of the adults surveyed perceive sidewalks positively, and 73 percent believe road maintenance and repair is important.
“REALTORS® understand that when people buy a home, they are not just looking at the house; they are looking at the neighborhood and the community,” says NAR President Elizabeth Mendenhall. “While the idea of the ‘perfect neighborhood’ is different for every homeowner, more Americans are expressing a desire to live in communities with access to public transit, shorter commutes and greater walkability.”
Helping the movement are real estate professionals, Mendenhall says.
“REALTORS® work tirelessly at improving their communities through smart growth initiatives that help transform public spaces into these walkable community centers.”
For more information, please visit www.nar.realtor.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at firstname.lastname@example.org.
For the latest real estate news and trends, bookmark RISMedia.com.