There’s no doubt that the real estate industry is undergoing a dramatic shift. And what’s driving this shift you ask?
You guessed it: Millennials.
According to the National Association of Realtors, 36% of all home purchases were executed by millennials. That’s over 1/3 of all homes sold in the U.S. (link found HERE). These buyers are tech-savvy, increasingly reluctant to rely on brick & mortar face-to-face interactions and value speed which technology easily provides. These buyers and sellers start and end their search online, they don’t rely on a listing board in some 250 agent office to get their information which devalues the model of the big-box chains currently dominating the industry.
“As technology continues to bring us closer together, leveraging that technology is fundamental in optimizing a workplace that fosters collaboration and speed across multiple levels. In our opinion, the days of having large offices filled with staff is too cost prohibitive”, says CEO Matthew Gilbert with NextHome Leeward & Company.
Many companies offer a hybrid model that has a small boutique meeting space while the vast majority of their agents work remotely in the field. Others offer a full virtual experience where agents can come together online to discuss their agenda. One thing is for certain with so much emphasis on technology the real estate office will continue to adapt to the market’s needs and owners are more than willing to accommodate. Brick & mortar store fronts are expensive to operate and a large portion of revenue has to be diverted to cover those costs. Besides, without an office to pay for, commissions could become more flexible as more and more adopt this model. What do you think?
Oh, one more thing: NextHome was just featured in THIS article by RISMedis regarding this very topic. Check it out if you have a moment.
As agents, we’ve all spent countless hours hammering out the marketing materials for our listings. From just listed postcards to single property websites to flyers to social media posts and on and on and…design choices galore. If only all of that could be automated – well luckily for us NextHomies it is! NextHome’s new Marketing Automation tool takes all the hassle of creating those marketing materials and automatically generates a package for the agent to instantly print or share on their social media accounts. Not even 10 minutes ago my seller requested a price reduction on my listing so I dropped the price in the MLS and NextHome’s backend system and BOOM! I get this social media post to instantly share on my pages:
NextHome Corporate has partnered with Imprev to make this dream a reality. As the NextHome CEO, James Dwiggins explains:
“With automation, agents have a repeatable way to deliver their marketing promise to clients — without wasting precious hours on repetitive, manual tasks. Imprev understands how important it is to deliver a consistent brand and marketing experience to our clients at every point in the home-selling process, which ultimately makes our brand even more valuable to an agent’s business.”
The whole system is designed to keep agents doing what they do best: servicing clients and not wasting time and money on (let’s be honest) subpar marketing materials. “NextHome agents can now leverage the full suite of Imprev’s services: Marketing Automation and the Design Center. After agents enter a new listing into NextHome’s reporting system, Marketing Automation creates and delivers marketing content for that listing until it’s sold. Content is tailored around four key events — Just Listed, Open House, Price Reduced, and Just Sold — making it easy for agents to use timely, relevant content to drive leads and engage with prospects. The service also constantly monitors each listing for changes; when a change occurs, all the automatically-created marketing materials are updated so they are always in sync with the listing and compliant with real estate advertising rules and regulations.” – Meghan Cheeney, Director of Marketing at Imprev, Inc.
To check out the full article from Imprev, just click HERE
Well after 2 years of -20% inventory, we’re finally seeing new listings hit the market and we’ve dropped into the -teens! I know it’s not a big jump but it’s a start. Click HERE if you would like a full market summary but I’ll give you a 30,000 foot snapshot below:
All data is from April 2018 vs. April 2017. We have a combined increase in average sales price of +8.2% and a decrease in supply totaling -16.7% year over year. What does that mean? It’s still a huge seller’s market. But, it’s getting better for buyers. For the past two years we’ve seen -20 (s)% in available inventory so to be in the teens is a good sign. For sellers it’s still a great time to list due to extremely low inventory levels. The median sales price was up 9.1% to $192,000 for existing homes and up 4.5% for new construction to $344,250.
The main driver for the increase in available inventory is based solely on new construction. Supply for existing homes is STILL -23.8% and days on market dropped 16.3% for those homes. Interest rates are also starting to creep northward which, in my opinion, is why more homeowners are choosing to stay in their current residence. Bottom line – if you’re looking to sell keep a watchful eye on these market updates. Buyers: hang in there, it’ll get better! – Matthew