It’s coming to the end of the year, and real estate market experts are rolling out all of their predictions. Home prices are expected to rise another 16%. At the same time, rising home prices will slow down from what we’ve seen in 2021. Mortgage rates will increase, and 2022 is slated to be a buyer’s market.
While all of these predictions are interesting to read, they’re just that. Predictions. The year 2019 taught us that any natural or economic force can wildly shift expectations into the stratosphere. Are we saying that all these predictions are hooey? That they’re hullaballoo? Not a bit.
These experts are comparing patterns, studying data and making educated guesses on what pattern will fall into place next. What we are suggesting is that there are other patterns to study — ones that can make an immense difference in your business as a real estate professional. Why focus on what the national experts are saying when you could be an expert in your very own market?
Local data gives you the upper hand
Finding out that Chicago’s real estate market could still skyrocket a double-digit percentage is of little use if you’re in suburban South Carolina. What matters for your market (wherever you are) is what patterns are developing near you. Studying listing information for the current year and comparing with past years — list prices, new listings, sold listings, days on market, off-market listings — will help you identify the trends and patterns that are unique to your market and will allow you to identify any spikes, dips, or peculiarities that may occur.
Once you’ve noted a change in a pattern, you get to put on your investigative journalist hat. What forces might be causing a certain neighboring market’s homes to sell quicker than before? Brokers, this might be an opportunity for an additional office location. Agents, you might have a new area of interest for prospective buyers.
Being a market expert helps your brand
Whether you’re a broker or an agent, having a deep knowledge of your market is impressive. Brokers, you’re able to identify what share of the market your firm has and what goals your team needs to keep you at the top. Your agents are trained on market activity and are seen as trusted sources.
Agents, one of the biggest factors in property sales is pricing. Homes that are priced correctly sell faster and often sell higher than those that were priced too high and sit through several rounds of reductions before they finally sell. Being able to lead a data-backed pricing discussion with clients helps you all settle on a price that is competitive, fair, and more likely to move. Guiding your clients to a price that sells (and one that sells quickly) will leave a lasting, positive impression.
Market data can help you build your business
Agent production reports are gold for real estate brokers looking to recruit (and retain) an agent team. Whether assessing current agents on your team or co-op agents who might be a good fit for your office, these reports hone in on all of the local sales data that can help you recruit or coach a stellar real estate team.
Agents, do you know where most of your business is coming from? Knowing your own sales activity can be eye-opening in understanding where you are busiest, and you can refocus your lead nurture and marketing activity to take advantage of that.
How do you get good data?
The most up-to-date, reliable data comes directly from your MLS. However, spending hours scrolling through the service’s information can be time-consuming when you are trying to focus on your real estate business. Real estate data analytics that partner with your MLS provide the same trusted, accurate data, and it’s broken down into reports that give you the metrics you depend on, right when you need them.
At Lone Wolf, our mission is to simplify real estate for brokers, agents and consumers. We’ve done this by recognizing the need for interactive, digital solutions that make each step of the real estate process easier and delivering on that need, from lead nurture to digital marketing, data analysis, and so much more.
Lone Wolf’s recent acquisitions — Cloud CMA, HomeSpotter, LionDesk, Terradatum and Propertybase — are recognized brands that bring with them lasting partnerships from across the real estate industry, including hundreds of MLSs and associations across the United States who share their data through our analysis platforms.
Lone Wolf recognizes that an informed real estate professional is an empowered one, and data is truly a foundational building block for any stage of the process, from establishing yourself as a new real estate agent to a respected brokerage with multiple offices who wants to keep an eye on the competition. So, keep reading the 2022 market predictions, sure. But also ensure that you know exactly what’s happening in the most important market — your own.
To learn more, visit www.lwolf.com.