2016 was a consistent year for real estate, both on the local and national fronts. In Albuquerque, our market saw steady growth throughout the year.
As we ended 3rd quarter of 2016, 6% more homes had closed over 2015. It was a great market for sellers as average sales prices were up an average of 3%.
A significant increase in interest rates at the end of 2016 has not been enough to stop a positive trending real estate market as we start the new year.
As we are a week into the new year, I’ve taken the opportunity to offer my observations of the real estate market in 2017.
Online marketing will get more competitive. Specifically, Facebook.
As agents gain a better understanding of how to use online marketing, the medium will become more competitive.
As more real estate agents see the benefits of Facebook advertising, it is going to be harder to capture leads. Agents are going to have to work harder to be unique and creative to capture the attention of their intended audience.
Real estate agents will also need to look at ways to improve their email campaigns and lead follow-up systems to be competitive and stand out.
Be more like Amazon
You’re searching on Amazon for sheets. You log off. 20 Minutes later, you check your Instagram feed and there you have an ad from Amazon for…
wait for it…
Traditional farming is no longer enough. Agents need to think of their marketing like Amazon. Real estate agents need to think beyond the simple mailer they send to their farm once a month. What else can you be doing to diversify your efforts to hit your target market this coming year?
Agents should be retargeting their advertising efforts to reach their target consumer from with several different places.
Instead, consider mailing to your farm, but also reaching them with targeted Facebook ads. You can do the same with your SOI. Be specific with your target, but consider broadening your efforts to reach your consumer.
Home marketing may become more competitive
As consumers crave more value for their money from real estate agents. Marketing properties will have to become more innovative. 3D imaging has become more prominent in larger markets as a way to simplify the showing process for buyers and a value added item for sellers.
It’s unlikely this trend will take off locally. But, I expect that agents are going to have to do better than a panorama shot from an iPhone to be competitive.
Interest rates may drive home sales. But, it may be short-lived
Sources predict there will be two interest rate hikes in 2017. This could take interest rates back to pre “recession” figures. Despite the increase, this may not stall home sales. In fact, it is expected to help those buyers on the fence, get off.
People will always need to buy and sell homes. It will be interesting to see how this plays out in the marketplace and if the market shifts at all.
How do you plan to make 2017 your epic year in real estate? Share your comments below.