ERA Analyzes Broker Response – RISMedia |
ERA® Real Estate has released a new thought leadership report examining how land ownership affects the industry.
The “Property Occupancy and Its Impact on the Real Estate Industry” report draws on observations and insights from ERA-affiliated brokers across the country on the impact of increasing occupancy. about their business in the past, how they have responded, and their views on what may come next in 2021 and beyond.
According to the National Association of REALTORS® (NAR), until 2019, homeowners stayed in their homes for an average of eight years, up significantly from 2000, when the average tenure was four years. But given the market conditions of recent years, the occupancy period could potentially extend to 15 years or more.
The report examines how the shopping spree of 2020 may have impacted occupancy rates. Last year, NAR reported 5.64 million people moved, an increase of almost 6% year-on-year. Many of these people may have moved outside of traditional life changes such as marriage, childbirth, divorce, or retirement, countering employment trends.
Understanding how this plays out in the years to come will be critical to the future success of brokerage results.
Key takeaways based on the experiences of ERA affiliate brokers presented in the report:
Generating supply through innovative seller-focused marketing is key to gaining more market share.
“The best way to get people to sell their homes is to educate them on
the current economic environment and creating a sense of urgency to take advantage of the seller’s market, ”Gus Grizzard of ERA Grizzard Real Estate said in the report. “The key message is to capitalize on the financial advantage. You’ll never see a seller’s market like this again, so take the opportunity to cash in on the absolute top of the market.
The creation of links with the food markets kept the activities in-house.
“Supply markets are an interesting concept in our local market. Fayetteville is specifically centered around Fort Bragg, an army base, and experiences the ups and downs of government policy, ”Denise Strother of ERA Strother Real Estate said in the report. “However, because of our positioning, we see investors from Florida and New York quite often. These clients are interested in investing so that they can look to a one-time future profit or generate stable income from rental properties.
Leveraging the increased demand for multigenerational living has helped capture a bigger slice of the pie.
“Over the past few years, we’ve noticed an increase in the number of clients looking for homes that can accommodate multigenerational living,” Jim Napier of ERA Napier REALTORS® said in the report. “Homes that have or can accommodate a bedroom on the ground floor and a full bathroom will promote aging in place for the elderly. Our agents are also adept at marketing flexible spaces in the home that can provide privacy, such as a finished basement or a home office / den.
Cultivating tenants through property management has created a strong pipeline for the future.
“With such high demand from buyers, we might see people renting for a year to wait for the market.
to calm down. When mortgage rates start to rise, prices will drop and fewer people will be in the market, ”Jeremy Raby of ERA Real Solutions Real Estate said in the report. “That’s why having a property management company right now is a great way to diversify a brokerage business. We currently have around 2,000 doors and are looking to double that number based on what we see in our market. “
Supporting agents with tailored marketing resources and CRM support has given them the competitive advantage of extra time to support existing customers and grow for future ones.
“We have just implemented a contact management platform to automate many client relationships on behalf of our agents,” ERA Team VP Real Estate’s Bill Soffel said for the report. “We have made this a priority due to the persistent shortage of inventory in order to generate more listings and market share. “
“The length of occupancy of the property is not a statistic that is typically tracked when assessing market conditions, which makes it a unique report for the industry. Looking at trends in property occupancy, it’s clear that changes in the length of time people stay in their homes are having an impact on inventory levels, ”said Sherry Chris, President and CEO of ERA® Real Estate, in a press release. “Despite the extreme ebbs and flows of market dynamics, successful companies are those who are able to balance short-term activity with long-term positioning. As we see from these ERA affiliate brokers referenced in the report, they have made strategic changes to their business in response to those changes, knowing when and how to adapt continues to be a competitive advantage.
Click here to download the full report.
For more information, please visit www.era.com.