Reversing Real Estate Trends in Minnesota
Reversing Real Estate Trends
Even Ben Bernanke is finally acknowledging a reversing pattern in certain US market places. The Twin Cities housing market has revealed parallel trends and conditions associated with the balance of supply and demand. For the past few years, the actual supply of single family homes greatly exceeded the effective demand of home buyers. The supply and demand ratios are reversing in the Twin Cities at a relatively blinding pace. Numerous factors have impacted these transitions and they include: Record Housing Affordability Indexes, record low interest rates, increased amount of investors and investor activity (over 40% Cash Buyers), reduced number of pending foreclosures associated with the most recent re-finance programs for homes in a short equity position. Also, the Federal Reserve and other bank regulators have utilized tools and programs to ensure that the banks have enough capital to cover mortgage losses while continuing to lend at such great rates. Banks have posted incredible consecutive quarters as well which in turn stabilizes the real estate marketplace.
For the past two years, existing homeowners have faced the question: “Should I stay or should I go? More and more homeowners are just now catching on to the fact that the supply and demand levels have reversed, coupled with the seasonally high period of sales in the marketplace. Dr. John Tucillo ( Chief Economist) best describes the nations real estate picture using a bathtub analogy. Picture a bath tub half-filled with water running, the plug removed and the water level remaining the same. He suggests that when water levels (supply and demand) adjust in either direction; investing in real estate becomes more risky. In other words, for the first time in years, we’re in a very stable marketplace according to Chief Economist, Dr. John Tucillo. Potential sellers can further leverage their equity position when making decisions regarding choosing better trained professionals with proven track records of sales. For example in 2011, EXIT Realty Nexus agents netted their sellers 5.83% more for their sellers than the rest of their competition (Data taken from posted MLS sales in 2011; Original List Price versus Sold Price). In 2010, EXIT Realty Nexus agents posted a 6.1% higher net sale for their sellers versus their competition. Sellers are also reversing their trends when selecting their preferred agent who will better serve their bottom line.
On the real estate front, some of the largest real estate corporations are facing extensive down-sizing, not to mention the most recent announcement Realogy (corporate owners of companies such as Coldwell Banker, Sotheby’s, ERA, Century 21 and others) recently avoided another bullet by Announcing a Filing Of Updated Shelf Registration Statement Covering Resales Of Convertible Notes And Underlying Common Stock. This goes hand in hand with a recent agent survey posted by Inman News. Inman news also reported they are noticing a few interesting and alarming statistics about what top real estate agents ($100,000+ per year in annual earnings) are thinking in this evolving marketplace. The following statistics came from over 2,600 top producing agents nationwide from a third party survey completed with Inman news.
- · 6 out of 10 top producing agents are considering moving or starting their own company. Why? The #1 reason chosen was: Lack of leadership, #2 lack of company direction, #3 lack of technology training and tools, #4 office culture. Ironically, Commission splits was # 7 on the list.
- · 30 % of those agents do not attend weekly meetings. When asked why? The common response was; there was nothing of value to help them with their business.
- · Regarding the time top producers spent in office: 15% of the time.
The vast majority reported they have a database management tool in place but wanted more help in both better utilization of the tools and tracking capabilities. Also, only 35% of these agents pay no technology, desk or administrative fees.
EXIT Realty understands the above and another very important development or trend. Over 80% of agents new to the business (between the ages of 25-35 years) within last 4 years are both top producers and are also in the top ten in their respective offices. Understanding technology utilization coupled with the leadership and mentors associated with EXIT Realty allows younger agents to not be afraid to be aligned with forward thinking brokerages who are completely vested in their success and career development. EXIT Realty provides exactly what they are looking for in this marketplace. As President of EXIT Realty Nexus in Highland Park and Coon Rapids Minnesota, Frank D’Angelo continues his dedicated mission and vision of developing the best trained agents in the industry (young and older) who can better serve their clients and obtain the highest and best real estate position. This is no coincidence EXIT looks and provides for their needs. Frank goes on to say that before anyone considers making an ‘EXIT’, they should first call EXIT Realty Nexus. Visit us at: http://www.EXITRealtyNexus.com or see one of the best ‘Lifestyle’ based real estate search tools in action at: http://www.EXITRealty.com
EXIT Realty is growing nationwide. “Try not noticing the EXIT sign”