Last week, realtor.com® released its housing forecast for 2017, naming a handful of trends to look for in the coming year based on the latest market insights. Forecast predictions include a 3.9 percent increase in home price nationally and a 1.9 percent increase in sales volume next year. Our interest rate forecast has been adjusted upward to 4.5 percent due to increased anticipation of inflationary pressure in the year ahead.
The Detroit-Warren-Dearborn forecast is included here:
What does this mean for agents and brokers looking to service the home buying and selling market in the coming year? Based on 2017 indicators, realtor.com® has put together five key ways that real estate professionals can help prepare for 2017 and ensure they are best positioned to address this new market.
THE FIRST-TIME JOURNEY. Expect longer contact-to-close, more hurdles.
What this means for you: Plan for more active prospects and declining conversion rates. Revisit your CRM plan to account for a few extra months with each client.
Resources from realtor.com®: Check out marketing.realtor.com to get the latest free resources as well as premium tools to help you connect with, cultivate and close more clients.
FINANCING. Fewer all-cash buyers means more variables impacting the close.
What this means for you: Lender expertise and connections will rise in value; build and strengthen these relationships. Help your clients understand the increased power of a strong offer in a more even competitive field.
Resources from realtor.com®: Our Advice/finance section on realtor.com® has great articles to share with your clients about getting their financial house in order, as well as specialized buying guides, like this one for veterans.
SEGMENT DIVERSIFICATION. Market shifts mean new approaches.
What this means for you: Understanding your client is paramount. Brush up on Millennials’ communication styles and channels, as well as older first-time buyers’ goals and needs, and retirees’ challenges and requirements.
Resources from realtor.com®: See realtor.com’s recent Home Shopper Survey on buyer segments, needs and most motivating factors. Check out our TechSavvyAgent resources to brush up on the latest trends – like using Facebook live for your business, time-saving Gmail shortcut tips, or the latest emoji trend, REmojis. Attend one of our upcoming seminars or webinars to hear about the latest tech trends and top tips from pros.
CONTACTS. A steady pipeline will be more important than ever.
What this means for you: Work your repeat-buyer prospect lists, ask for referrals/recommendations, and make sure your online profile is working for you. Renew relationships with builders of new construction homes.
Resources from realtor.com®: Visit your profile by logging in at realtor.com – it's easier than ever to quickly review and update your profile information, and to send a review or recommendation request to recent clients.
THE BASICS. Price deltas that seem smaller than in recent years loom larger when amplified by mortgage rate increases.
What this means for you: Do the math – literally – for your clients. Explaining price differentials in your market against the backdrop of expected rate increases could help prevent a buyer or seller from being locked out of their optimal price just a few months later.
Resources from realtor.com®: Check out the newly updated research.realtor.com, which has current and historical data on a state and market level, as well as for the majority of ZIP codes across the country.
Access the realtor.com housing forecast for 2017 here.
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