A look back at 2016
2016 had its ups and downs that is for sure.
- It was the year of Snap Chat, who surpassed rival Twitter and Pinterest to become the fastest growing social media company in the United States.
- A time when Alexa became a household name according to Forbes, and personal tech extended beyond Apple and Android. And, it was discovered that a smart phone wasn’t that smart without a chatbot.
- The election, need I say more.
- And, through it all Texas held strong.
- Local economies proved that Texas could actually be four states in one continually proving that real estate is local.
- Communities stood together.
- Home prices were up 7.1. percent in November 2016 compared to November 2015.
- Interest rates held on to being affordable.
- Unemployment was down.
- New builds were up.
- And, oil prices started making a slow, slow, slow and much needed comeback.
- Economic outlook
- The private sector will continue its growth.
- Retail and restaurants will continue their upward trek.
- Unemployment will remain low.
- Real estate outlook
- Home prices will continue to go up, in fact CoreLogic predicts a 4.7% year over year increase in home prices by November 2017.
- Interest rates will go up, according to Bankrate.com and just about everyone else.
- Residential building permits will go up, but the population growth and demand will still exceed the homebuilders inventory.
- Not enough new homes are being built to meet the demand caused by population growth. The National Association of REALTORS® (NAR) forecasts to increase by 10%, while construction of new homes is expected to rise by just 3%. Kiplinger also talks about the continued housing shortage.
- It may be harder to get a home. But, people still aspire to be homeowners. According to the National Association of REALTORS® 2016 Q4 Homeownership Opportunities and Market Experience (HOME) Survey, 70 percent of people believe that now is a good time to buy a home. And, I believe they will buy at any rate when the time is right for them.
- As more Millennials marry and begin having families, they will finally start buying homes and move to the suburbs because of affordability and schools.
- Trends you will see
- The need for increased economies of scale and a desire for enhanced services will cause more MLSs to merge.
- Complementary technology. Personal tech will continue to be on the rise. You will see a growth in chatbots that will transform traditional business service models to reduce customer retention costs and provide better service.
- More agents will turn to brokers to find competitive and updated technology solutions and address data security. Examples include virtual reality tours, bots, drones and AI, and increased hacking. It’s impossible for individual agents to stay current on all of the technology and security issues. Brokers who fail to provide comprehensive technology solutions will lose agents to brokers who do.
- Disruption may be afoot. Keep your eye on Open Door. This could be an Uber-game changer for real estate.
- For more predictions, check out “Notorious ROB’s 7 Predictions for 2017” featured in Inman News.
- What this means to me
- Someone will still have to do the work. No matter the business model or the tech, there will always need to be a person responsible to get the job done, and for us these are our real estate partners, REALTOR® friends and mortgage bankers who make the real estate transaction happen.
- What I am looking forward to the most
- Really what I am most excited about is the future. Change is on the horizon, and how we accept and grow with this change is up to us as business owners and citizens of the community… Real estate is local and the dream of home ownership is still very obtainable. That to me makes this year the most exciting.
“The ultimate guide to what 2017 has in store for real estate”, “Notorious ROB’s 7 predictions for 2017: The boy bands edition”, Year in review: 10 major real estate tech trends that shaped 2016″, “Why more MLSs and associations will merge in 2017”, “Broker vs. bot and the winner is..”, and “Human satisfaction: can a bot fake it enough to get there” @ http://www.inman.com