Posted by: Bob Wiley | February 13, 2013

Top 2013 Real Estate Trends

“It tough to make predictions, especially about the future.” Yogi Berra

Wouldn’t the real estate business be so much easier if we had a crystal ball? Guess what? You do have one if you choose to pay attention to everything around you. Use it and you’ll be better off in 2013 and beyond.

Here are some reasonable predictions about what we might see in 2013, and more importantly, how you might capitalize on them.

  1. Interest rates will begin to rise slowly. Let me say right up front, I’m not an economist but many of them, along with lots of other industry analysts, say there’s little doubt rates will rise. And by the fourth quarter of 2013 we’re liable to see them a full point higher than they are right now. How do you capitalize on this? You have to go at your business with a stronger sense of urgency. Yes, you’ll find some sellers who’ll tell you they want to wait till prices raise more. The thing they’re not taking into account is that the longer they wait, the more they themselves will be paying in interest for their new home. So it works both ways. Buyers – and sellers – need to have a sense of urgency during low interest rates.
  2. Home sales will rise between six to eight percent. Bullish analysts predict upwards of 10 percent increases; bears say go as low as two percent. Somewhere in the middle is reasonable. Now, how do you cash in on this information? It’s easier to sit on a stool with three legs instead of one. If you broaden your base with some of the residual REO and short sale business with rising traditional home sales, you’ll be sitting pretty – and not fall on your face. Last year was a tough year on the REO side because of the election year and everything was up in the air.  There was a lot of uncertainty, but now I believe we’ll see more distressed properties entering the market along with a strengthening traditional position.
  3. We’ll see more activity among second-time homebuyers. Now that the election is over and the economy is showing some positive signs, I think we’ll see more “move up” buyers looking for bigger, nicer homes. NAR says markets across the country will have upwards of 75 percent of second-time buyers during 2013. That’s an awesome market to target so don’t miss out.
  4. Consumers will continue to use the latest technology in their search for real estate. We’ve known for years people search properties online before they talk to agents, but now they’re using mobile devices (iPads, iPhones, etc.). How does your website appear on an iPhone? If you don’t know, find out. There’s a chance it may not look the same way it does on a computer. That means users will leave your site and find one that does look right. Get it fixed or lose business. It’s just that simple.





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