January 10, 2014 11:03 am
There is no doubt that the consumer’s desire to access housing information through the internet will continue to increase throughout 2014. However, that doesn’t mean the value of the real estate agent has diminished. Inman News
recently cited a NAR survey when they reported
“Use of the Internet among consumers in the home buying process continues to grow, but those buyers are more, not less, likely to use a real estate agent.”
To continue to remain relevant, real estate professionals must keep pace with the changes in how the consumer is viewing pertinent housing information.
January 9, 2014 11:00 am
Home search will become a given to the real estate consumer in 2014. In order to differentiate themselves from other agents, real agents will need to bring strong, meaningful content
to the table in all their offerings. And we are not talking just about more information.
There’s a large gap between information and actionable knowledge.
Information by itself is essentially useless. What’s truly important is being able to understand, analyze, and use the information for the best outcome. That’s what the consumer will demand of real estate professionals in 2014.
The agents who don’t evolve into what the consumer now demands will not survive. Clients no longer need us for information regarding which homes are for sale or what houses in their neighborhood sell for. They can easily find that information online.
January 8, 2014 11:00 am
Most experts are calling for an increase in mortgage interest rates in 2014. However, we believe the increase will be more dramatic than is being projected. We believe rates will be closer to 6% than 5% by year’s end.
The Fed announced last month that they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM
Blog has been warning of this likelihood
over the last several months.
Above are the most recent projections of where rates will be at the end of 2014 by the four major agencies. However, we believe that the government is not afraid to shoot right past these levels.
January 7, 2014 11:00 am
With a dramatic increase in demand for housing expected this year, it will be up to real estate professionals and builders to make sure there is the necessary inventory to satisfy this demand. This will be a challenge for much of 2014.
For a balanced real estate market, there should be approximately 5-6 months of inventory for sale (example: if 100 homes sold last month, we would need 500-600 homes available for sale). Nationally, we are just now hitting the five month level. As the spring selling season begins to heat up, a new wave of housing inventory would have to come to market to keep up with the increasing demand of buyers.
If we couple this seasonal increase with the other dynamics that will increase demand for housing in 2014, we believe that housing inventory could drop substantially. This, in our opinion, is the biggest threat to a full blown surge in sales this year.
January 6, 2014 11:00 am
Many housing pundits are calling for home sales to do slightly better in 2014 than they did in 2013. To the contrary, we strongly
believe that home sales will skyrocket with increases of 10-15% in 2014. Here are the three categories of buyers we believe will create this strong demand.
The First Time Buyer
The Urban Land Institute
recently released a report, Emerging Trends in Real Estate 2014
, projecting that 4.48 million new households will be formed over the next three years. Millennials will make up a large portion of these new households. With the economy improving, we believe they will finally be moving out of their parents’ homes and, when they compare renting versus buying, many will choose homeownership.
The Move-Up Buyer