In today’s real estate market of rising prices and limited inventory, it’s not uncommon for buyers to drag their feet, especially those just coming out of foreclosure. How can you reassure buyers in such uncertain times? We’ll take a closer look in today’s real estate marketing tips.
Relief is On the Horizon
Experts agree, current levels of price appreciation are unsustainable, and inventory shortages won’t go on indefinitely. More moderate home appreciation and rising inventory levels are forecasted for this year, creating more opportunities for buyers. How can you take advantage of rising consumer confidence?
Point to these Factors for Buyers Taking the Plunge:
• Rising Interest Rates
After years of record lows, interest rates are on the rise, with one rate increase at the end of 2017, and two to four more predicted. Anticipated to hit 5% by end-of-year, these rises impact affordability, raising monthly payments. The key real estate marketing point is: The longer potential buyers wait, the more expensive a home purchase is likely to be.
• Climbing Prices
Though price appreciation will vary by market, all but red-hot markets are expected to lose steam. Increases are forecasted at 3.2% year-over-year for 2018, following 2017’s 5.5% jump, with 2.5% year-over-year increases expected thereafter. In either case, you can’t gain an appreciation on a home investment you don’t make.
• Rising Inventory
The tide is expected to turn by fall of this year, with inventory of homes in mid to upper-level price points seeing the majority of inventory growth. New home construction will also expand, but more slowly, with tightening bank financing, lot/land availability, higher building materials costs, and labor shortages affecting the ability of builders to provide homes at entry-level/first-time prices. We predict an upswing in this sector in 2019 and beyond.
Do you have the real estate marketing tips you need to bolster buyer confidence? Put yourself on the path to success with the help of PropertiesOnline today.