Real Estate Trends in 2012• As you search for homes for sale, consider the current real estate trends. The trends can help buyers make sound decisions about the purchase price of the home. Negotiations are easier when buyers are informed and understand how the latest trends will affect their prices. Here are a few real estate trends that may affect the home buying process:
How Real Estate Prices Have Changed Over the Years• Since World War II, real estate property values have increased two to five percent, but in the past three to five years, property values have declined. The price declines began in 2007 and have declined as much as 39 percent every year. The average decline is suspected to be lower overall than the initial decline.
How Real Estate Prices Have Changed Over the Years• These price increases are indicative of the economy. Even with the lower prices, many people are still not able to purchase as many houses as might be expected because the economy is slower, and people cannot afford to purchase homes. For those people with disposable income, this represents a huge buying opportunity. Numerous properties can be purchased for discounted prices.
Lower Commission Rates Since 2005• Since 2005, the real estate commission rates have changed from five to seven percent of the property’s selling price. There is so much competition in the real estate market with the number of licensed agents that the average sales commission is significantly lower than in previous history. The average was approximately six percent.
Marketing Trends in Real Estate• Over the years, real estate marketing trends have also evolved. Not only are newspapers used to learn about homes for sale but so are magazines and social media tools like Facebook, Twitter and Pinterest. Pinterest is especially making a splash as people “pin” their favorite homes on a Pinterest board.
Marketing Trends in Real Estate• In fact, over 87 percent of home buyers in the United States recently have used the Internet to find information about homes and the home buying process. According to the National Association of Realtors (NAR), one-third of the buying public first learned about their homes on the Internet.
Marketing Trends in Real Estate• The Internet is the most popular marketing trend, but 62 percent information may also be provided from yard signs, 85 percent from real estate agents and forty-eight percent from open houses. Buyers received less information from home builders, television, relocation companies, and billboards.
Real Estate Trends and the Government• The government has also played a role in recent history. Officials educate consumers about how competition can improve the real estate brokerage services. Home sales costs can be reduced by thousands of dollars by participating in healthy competition.
Real Estate Trends and the Government• Because of the competition in some states, buyer’s brokers may return as much as two-thirds of the commission to customers. Some seller’s brokers allow sellers to list homes on a Multiple Listing Service (MLS) for only a few hundred dollars.
Preparing the Home to Sell• Recent surveys have shown that over 50 percent of agents were willing to price their homes competitively, and 45 percent were willing to change the appearance of homes to entice buyers to buy. Sellers are more willing make repairs and de-clutter.
Preparing the Home to Sell• When homes are de-personalized, the homes sell faster. Over 78 percent of home buyers are willing to make changes to influence sales and help buyers recognize the true value of the home.
Further Information…• Dan Wood & The Open House Tour team are Whitby & Oshawa’s real estate leader. Visit us today at http://www.openhouse-tour.com/ to view all of our available listings.