Economic trends affect the local real estate market
It may not feel like that lately, what with all the do-it-yourself real estate services available online these days. But there are a number of places where a robot or automated information can’t just step in and take over from you, a skilled, knowledgeable, involved human being.
Those services don’t have what you have: in-depth knowledge of the neighborhoods in which you conduct your business. You know which schools have good ratings, the quickest way to get on the freeway, and which areas are trending at any given moment. Your clients rely on you for this kind of information, helping them put it all together in a package to find the right home for them and their families. You’re delivering true value to your clients — something a roboservice just can’t do.
Another way a real live real estate agent trumps those automated online autoservices is by applying global economic trends to the local communities in which they live and work. Economic changes in other countries can have an effect on our local American real estate markets, and today’s more market-savvy clients want to see the big picture. It takes a skilled agent who’s in tune with world news and local needs to both insulate clients from possible market upheavals caused by changes in the world market — and also to take advantage of positive changes that can help clients achieve their goals more quickly and easily.
A simple example is the oil market. Oil prices crashed, leaving the usual oil-producing countries in a financial bind, causing them to pump out more barrels daily. In turn, this depresses the U.S. oil industry, which disrupts employment and local economies here at home, and suddenly the housing markets in the affected areas are volatile.
I, too, must pay attention to world economics. Global market fluctuations clearly impact interest rates here at home, which will in turn impact your clients’ purchasing power. As a professional mortgage lender, I am able to show potential homebuyers why buying now is better than trying to buy later. Interest rates are slowly rising, and I can show clients how that will impact their ability to afford the home they really want.
Investment by foreign companies in the U.S. will also affect the local markets. In cities where foreign investment is high, we’ll see a tightening of the market, as availability goes down and prices go up. Add rising interest rates into the mix and you’re looking at vast swathes of the country experiencing a market that’s not on the side of the regular homebuyer. Then, of course, urban dwellers will be forced outward, prices will rise, and the number of available, desirable houses will drop in concentric rings, affecting the suburbs and in some areas even the rural outlying areas.
They say local is global. Or is it global is local? Whichever it is, as a real estate agent, both apply to you. You’re not only expected to know the ins and outs of your local neighborhoods where you conduct your business — you also need to keep up with national and even international trends in real estate, in order to provide your clients with the best advice and guidance possible. If I can be of assistance in getting clients off the fence, please let me know.