SIX REAL ESTATE TRENDS YOU SHOULD BE WATCHING

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Change is inevitable, especially in the real estate industry. Here are six trends to keep on your watch list as the industry shifts and grows.

Trend #1: Millennials are on the move

The millennial generation has been somewhat late to the game of real estate. Many from this demographic were saddled with student loan debt, forcing them to rent longer or live with their parents. The oldest segment is now in their mid-30s, and the prediction is that their current life stage will motivate them to settle down and buy more homes. More jobs are being created for this age group, markets are doing well and interest rates are low.

Trend #2: Midwestern appeal 

With the millennial generation looking to invest in homes, predictions are that they will continue to look for markets that are more affordable, that offer well-paying jobs and that are in close proximity to large universities. And while many people already know of San Francisco, Calif., as “Silicon Valley” and Austin, Texas, as “Silicon Hills,” the new nickname for the Midwest, “Silicon Prairie,” is just starting to spread as abundant entrepreneurial opportunities develop in the U.S. heartland.

Midwestern cities are anticipated to grow in popularity because they offer so much of what millennials are looking for in their home-buying criteria. Which Midwest locations offer these millennial-friendly features?

Some experts suggest:

• Madison, Wis.
• Columbus, Ohio
• Omaha, Neb.
• Des Moines, Iowa
• Minneapolis, Minn.
  

Trend #3: The West Coast will continue to thrive

Job growth is increasing along all areas of the West Coast. Home sales and prices are expected to rise, and as a result, these markets will further dominate sales rankings. The top West Coast areas include:

• Los Angeles / Long Beach / Anaheim
• Sacramento / Roseville / Arden-Arcade
• Riverside / San Bernardino / Ontario
• Tucson, Ariz.
• Portland / Vancouver / Hillsboro Regions in Oregon and Washington

Trend #4: Suburbs and more affordable cities are on the horizon

While home prices and rates are increasing, affordable inventory is shrinking. As a result, it’s expected that more affordable cities and suburbs will see an increase in popularity.

In a recent report from the Urban Land Institute, American suburbs are still thriving areas that people are calling home.  The report shows that in 50 of the largest metros in the United States, suburbs account for 79 percent of the population, 78 percent of households and 32 percent of land area.

Trends #5 & #6: Low inventory at entry-level price, single-family homes as investments

Ruben Gonzalez, staff economist for Keller Williams, highlights two trends that have risen to the forefront: low inventory at an entry-level price range and single-family homes as investments.

“Following the housing crisis, new home construction has concentrated in the mid to upper price ranges while demand rebounded throughout the market. We have also seen a significant resurgence in single-family homes as investment instruments, and investment demand is typically concentrated in the lower price ranges as well. This lack of new inventory and increase in demand has created a challenge for first-time home buyers in some markets.”

KELLER WILLIAMS LOCKS DOWN LARGEST NUMBER OF FIRMS ON TOP BROKERAGE LISTS ... AGAIN!

Strong Results

KW productivity gains make it the “Top Power Broker by Brand” for second consecutive year

For the second year in a row, Keller Williams, had the most firms on the REAL Trends 500, according to the annual ranking and reporting published by REAL Trends, Inc.

The company had 161 brokerages featured on the REAL Trends 500.

“Keller Williams is thrilled to be home to more representatives on the REAL Trends 500 than any other franchise,” said John Davis, co-CEO, Keller Williams.

Collectively, the Keller Williams brokerages on the 2017 REAL Trends 500 handled more than $178 billion in sales, up 23 percent over the previous year. They also handled 645,000 transactions - a one-year gain of 21 percent.

"Housing sales in the nation were up 4.9 percent in 2016 from 2015. The REAL Trends 500 firms were up 6.6 percent in the same period," said Steve Murray, president, REAL Trends. “For the third year in a row, the nation's largest brokerage firms gained market share.”

Last year, Keller Williams led REAL Trends 500 with 151 brokerages represented.

On the new report, Texas-based Keller William Realty Arlington brokerage ranked No. 10 by sales volume with $8.8 billion for 2016.

“For the first time, there was one Keller Williams’ firm in the top 10,” Murray said. “That was as a result of a combination, a merger — but still, a Keller Williams brokerage doing 30,000 sides — unheard of.”

At $8.8 billion in closed sales volume, the Keller William Realty Arlington brokerage also ranked No. 10 for sales volume on the RISMedia report and No. 6 for its transaction sides of 33,769 in 2016.

Additionally, on the RISMedia 29th Annual Power Broker Report, Keller Williams was home to an industry-leading 32 percent of the top 1,000 brokerages surveyed, up from 29 percent of the list in 2016.

The strong results on the REAL Trends and RISMedia lists are evidence of the dedication Keller Williams agents have poured into their businesses.

“By focusing on production -- and being really purposeful about our activities and training during the months when traditional real estate slows down -- these 161 market centers are helping agents fund their lives and create opportunities,” said Davis.

For more information on the REAL Trends 500 and the RISMedia Power Broker Report, visit realtrends.com and rismedia.com.