I took a drive up to Scottsdale from the southeast valley today to hear Max Pigman of Realtor.com discuss capturing and converting buyers, social media and getting ready for profit in 2010. Just when I thought I knew it all, someone like Max comes along and puts what I was thinking into hard numbers. That what he did for me, and that what I will attempt to do for you.
Now, this information is for my clients, if you are not one of them, kindly close this page and go about your day…….
OK, now that they are gone….. Here we go.
What is the market doing?
Nationally we have seen 8 straight months of rising higher sales rates. More houses will be sold this year than last year and more the following year.
REALTOR.com expects 15% higher unit sales nationally.
Have you seen the local news lately? Even the news is encouraging buyers to get off the fence and buy now.
Why this is a great opportunity for you:
1980 there were 760,000 REALTORS in the U.S., at a time when there were 17, 18 or even 19% interest rates. 70,000 of these folks got out of the business in 1990 due to the recession.
1990 673,000
1990 820,794
1995 726,251
2000 756,748
2006 1,103,386
2007 1,265,569
2008 1,336,855
NAR has just announced they expect their membership to drop to approximately 1,112,645 members. This number is down 224,000. This means there will be more homes sold this year than last year AND there are less competing REALTOR’s.
Here is your opportunity:
Most profit is made by REALTORs that are positioning themselves for the rebounding market. Your marketing needs to be ahead of the market. Most agents I speak to are shell shocked, they have cut out most if not all of their marketing! You have an opportunity to be in the right place at the right time.
In the next 90 days, there should be alot of buyers entering the market, more and more buyers believe the market has experienced a “snap bounce” they believe the market has gone down too far and will rebound quickly. This is a great time to capture market share.
Is now the right time to buy?
YES! You know it and so do I.
Facts:
In 2007 the average price here in Phoenix was 257,900. In 2009 Q4 the average price was 143,900. That is a 44.01% decline!
Now could be the perfect time to buy. Lets take a a value of $300,000.
2006 value $300,000
Today’s value 167,700
% adjustment 44.1%
Difference $132,300
Now factor in appreciation. Lets use conservative estimates.
5 year Appreciation estimate
Year 1 0%
Year 2 1%
Year 3 2%
Year 4 3%
Year 5 4%
2015 estimate of value for a home purchased today is $184,470
potential gain $16,770
tax credit $8,000
Gain in 5 years =$24,770
BUT…..If interest rates go up even .5% a buyer will have $25,000 less in purchasing power. This is why it’s important to buy now..
I’m telling you, This is the most opportunistic market most people have EVER or EVER will see.
There are more houses to sell and less agents to sell them. There is some opportunity there for you.
Of course, all the information above assumes that you are continuing to market yourself. When a buyer believes that there is a great opportunity to buy, they will go to the Internet.
Will they find you?
Ready?
Go.
Arizona Realtors, If you would like help getting your marketing set up to take advantage of these opportunities, Lets Talk…. please call me.
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