5 Things we Need to be Telling our Clients about 2017

Reblogger Hannah Williams
Real Estate Agent with Re/Max Eastern inc.

 

  • First time buyers are back  .The surprise is they want to stay longer in their first home 
  • Rents have become much to high  .It is cheaper to buy then rent  . 
  • First time buyers know this  they need to come up with 3 months rent plus
  • They know it is smarter to by then rent and they do not want to live in their parents basement
Original content by Mary Jo Quay

Last week I had the privilege of attending two real estate forecasts for 2017. One was with Ted Jones, chief economist for Stewart Title and Steve Harney, CEO of KCM. During the Recession I poured over economist’s forecasts and found most of them less accurate or entertaining than the weatherman. The opposite is true of both Ted Jones and Steve Harney. Though their points of view are different, each echoed the direction of the other, and it’s all backed by data. There may be some thunderclouds, but we’re in for a sunny real estate market. 

  1. Millennials surpassed Boomers as the largest generation, (Born 1981-1997) there are 83 million of them. Why does this affect real estate?  Because the average first time buyer is about 31, and some are younger. 70% of them would like to buy, but they are cautious after the recession, and know what they don’t know. They don’t want to live in their parent’s basement, they need you.

  2. There are more jobs than ever historically. Unemployment declined to 4.6% in November,   payroll employment increased by 178,000 jobs. Even better, new jobs are in the professional, business service, and health care industries.

  3. We’ve seen a 14 year retail boom. Brick and mortar stores are not disappearing, they’re popping. At www.thestorefront.com, you can find a pop up rental for a few hours or days in 7 cities around the world. SnapChat, Nike, and startups take advantage of vacant spaces to test pop up shops without a long term commitment. Retail is literally a moving target. Millennials will research online, but prefer in store experience where they can bag a bargain to go.

  4. Renting costs have way outpaced owning. Benefits of renting pale in comparison to having a place of your own. Where’s the best place in Minneapolis for Millennials to dine on a Friday
    night? In their own brand new town home with Ikea cabinets! By Mid-March they’re waiting for their tax rebate to spend on remodeling the basement. 

  5. Entry level buyers are back. The surprise is that they aren’t buying entry level homes, they are going for the move up home. They intend to stay longer. Before the Boom, average time in a home was 6 years, post Boom, it’s over 9 years. There are layers of reasons, but buyers are expecting to stay longer in their first home. 

Cheap energy is here to stay. The Permian Basin is 800,000 acres in west Texas that competes with Saudi Arabia. Technology has production costs down to $2.25 per barrel, so low that you can keep driving that gas guzzler forever. Shame on you. Cheap gas means more jobs, cheaper travel, building costs, heating, and lighting your home. It also means that there isn’t a lot of incentive for alternative energy.  Shame on us.

 

Let the New Year begin!

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Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Thanks for sharing this forecast post. I agree with several of the points and am seeing it in my area.

Jan 13, 2017 06:12 PM #1
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
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Yes, most Buyers appreciate the education we as real estate agents offer.

Jan 13, 2017 07:51 PM #2
Rainmaker
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Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

This is so true, Hannah. In Charlotte, the first time buyers have been "back" for three years now with rising rents... the issue is finding them affordable "first-time" homes now.

Jan 14, 2017 05:06 AM #3
Rainmaker
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Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

Hannah Williams a lot of this is accurate for my local area. Thanks!

Jan 14, 2017 05:08 AM #4
Rainmaker
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Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Hannah, this was a great re-blog to share. I agree with many of the points and am seeing them happen in this area. I am looking forward to the Spring market, I think many of us will be extremely busy. Hope you have a great weekend.

Jan 14, 2017 05:48 AM #5
Rainmaker
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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

First-time home buyers are out and about Hannah. Afterall, home ownership is so much more beneficial than renting!

Jan 14, 2017 06:48 AM #6
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Hannah you picked a good blog to re-blog especially for the beginning of the year.  Renters need to be thinking about buying while interest rates are still low, and home prices are affordable.

Jan 14, 2017 01:47 PM #7
Rainmaker
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Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

This was a great post to select for reblogging, Hannah!  In our area, rents are climbing.  I also agree with the comment left by George Souto 

Jan 14, 2017 05:50 PM #8
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Karen Hellier
Freelance Writer - Big Canoe, GA
Freelance Writer for Professionals, North Georgia

Nice re-blog Hannah. Thank you for sharing it with the rest of us. Unfortunately I still know people who want to live in their parent's basement!

Jan 14, 2017 07:55 PM #9
Rainmaker
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Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

hello Hannah.  Lots of interesting information here.  Thanks for the repost.  mark  

PS...seen any movies lately.  I have not been too impressed.  Did my Christmas Eve dinner movie tradition with Starwars.  I was mistaken like many I am guessing that this was not a continuation from the last we most recently saw.  But rather stepping back to how it all started.  Not a bad movie, just not what I had looked forward to.  

Jan 15, 2017 11:53 AM #10
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Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Hannah Williams,

You picked an excellent post to re-blog... rents are climbing in our area and inventory is low. Many first time home buyers are out looking but it is hard to find affordable homes for them. They definitely want to be out on their own and realize the importance of buying verses renting.

Jan 16, 2017 03:27 PM #11
Rainmaker
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Rebecca Gaujot
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Hannah, I had two first-time buyers sales and hope to have more in 2017.

Jan 16, 2017 08:34 PM #12
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Peter Mohylsky
BETTER HOMES AND GARDENS REAL ESTATE - Destin, FL
Your Bucket List Broker in Destin, Fl..

Thanks for sharing these thoughts again.  I do agree with most of the points especially the cost of renting vs buying.

Jan 26, 2017 02:38 AM #13
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