realtorreview ®
A publication of the Raleigh Regional Association of REALTORS® I summer 2015
knowledge, awareness and empowerment Keeping REaltors Safe ®
Board of Directors Election Sept 28 — Oct 6
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realtorreview ®
summer 2015, Vol. 7, No. 1
features
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17
NAR steps up safety efforts Knowledge. Awareness. Empowerment.
Buying and selling tips from a man 9 who flipped 3,000 homes
the real reasons millennials aren’t buying homes, part 1 Several common misconceptions unveiled
How to work with investors
seller motivation: 22 ‘Have to’ versus 12 ‘want to’ sellers Know
self defense class September 10, 2015
Raleigh Regional Association of REALTORS® 111 Realtors Way, Cary, N.C. 27513 Phone: 919-654-5400; Fax: 919-654-5401 www.rrar.com RRAR Board Officers Harriette Doggett: President Mark Parker: President-elect Mollie Owen: Past President Tom Gongaware: Secretary/Treasurer Steina DeAndrade: President, REALTOR® Foundation of the Triangle 2015 RRAR DIRECTORS Dianna Braun Gina Miller Eddie Brown Player Murray Anne Cain Steven Norris Brenda Carroll Mindy Oberhardt Frank DeRonja Teresa Pitt Diane Donnelly Zach Shabot Bill Fletcher Renee Smith Van Fletcher Tom E. Smith Lewis Grubbs Margaret Sophie Linda Kolarov Glenn Weeks Tim McBrayer Leslie Williams realtor® foundation of the triangle OFFICERS President: Steina DeAndrade President-elect: Jose Serrano Secretary/Treasurer: Gina Miller Community Service Chair: Harrison Tulloss NCAR Regional Vice Presidents Linda Trevor and Jose Serrano NAR Directors Linda Trevor and Asa Fleming triangle realtors® leadership academy dean Scott Hoyt REALTOR® Review staff: Trish Gregory Rand, editor, trishr@rrar.com
what you’re working with before you waste your time
Sandee Washington, managing editor, sandeew@rrar.com Shelly Beck, graphic designer, sbdesign@cox.net
departments 3
President’s Message
6
REALTOR® Safety Month
Featured on our cover: from left to right, RRAR Member Renee L. Hiralal Broker, SFR, RCA, CREN, Notary Republic, and Anthony Latourneau, Master Instructor with Karate International.
14 RRAR Board Elections 20 Local Market Update 23 RRAR Events ®
Preliminary Identity Colors
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Members are cautioned that the inclusion of a name, specific commercial product or service in an article, or in this publication does not imply endorsement by the Raleigh Regional Association of REALTORS®. All advertisers in this publication wholly support the Fair Housing Act and fully promote equal opportunity housing. Copyright 2015 by the Raleigh Regional Association of REALTORS®. All rights reserved.
rrar.com REALTOR Review
For editorial contributions and ad inquiries, please contact Trish Gregory Rand at trishr@rrar or (919) 654-5400.
summer 2015
president’s message MISSION STATEMENT The Raleigh Regional Association of REALTORS®, the area’s voice of real estate, promotes the highest ethical and professional standards and cooperation among its members; provides products, programs and services to meet the evolving needs of the real estate industry and consumers; and serves as a leading advocate of private property rights and community involvement.
On being an
involved REALTOR ®
I often hear different reasons for being a member of our REALTOR® Association. When I hear a REALTOR® saying they like giving back to the community or making sure their clients get the very best service available, my heart sings!
And then there are others, who say things like, “I have to be in order to access Harriette H. Doggett MLS” and I realize they ‘just don’t get it’! But I have to tell you there are lots of reasons for being or becoming an involved REALTOR®. One of the most important reasons our REALTOR® Association exists is provide advocacy efforts through our members and on behalf of our industry and clients. When we work together to protect private property rights and affordable housing and fight against unfair taxation of property owners and the real estate transaction, we collectively, as REALTORS®, can voice our opinion; we can be
heard. One way we can be heard is through our support of elected officials who realize the importance of homeownership and how housing is continuing to fuel our economic recovery. Our donations to the REALTORS® Political Action Committee help to support those elected officials who understand the importance of homeownership and protecting private property rights. And know that when you are investing with your RPAC donation to protect others, you are also supporting your own rights as property owners. REALTORS® own real estate, too. We have a vested interest in making sure our voices are heard! With your REALTOR® membership also comes an expected level of professionalism and courtesy which we owe to one another and to our customers and clients. Our Code of See president’s message on page 4 REALTOR Review ®
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VISION STATEMENT “Anticipating and meeting the opportunities and challenges of our industry.” Council & Committee Chairs Communications & Public Relations Chair – Laurie Donofrio Women’s Council of REALTORS® Chair – Steven Norris Triangle International Council of REALTORS® Chair – Grayson Hodge REALTOR® Foundation Service Committee Chair – Harrison Tulloss Governmental Affairs Committee Chair – Margaret Sophie Diversity Committee – Chair – Leslie Williams The REALTOR® Foundation of the Triangle President – Steina DeAndrade Top Producers Council Co-Chairs – Brendan Carroll and Gracie Goins Property Management Council Chair – Richard Millender Young Professionals Network – Co-Chairs – Ginger Vereen and Shruti Desai Small Brokers Council Chair – Ken Smith RRAR STAFF DIRECTORY Main Office (919) 654-5400 Fax (919) 654-5401 www.rrar.com RRAR Company Store, (919) 654-7253 Chief Executive Officer Tessa Hultz, Ext.1022, tessah@rrar.com Association Services Director Betsy Ramsey, Ext. 1004, betsyr@rrar.com Association Services Associate Vicki Buckholtz, Ext. 1027, vickib@rrar.com Communications Director Trish Gregory Rand, Ext. 1026, trishr@rrar.com Communications Associate Sandee Washington, Ext. 1023, sandeew@rrar.com Education Director Cara Mottershead, Ext. 1006, caram@rrar.com Education Associate Sonya Yankoglu, Ext. 1024, sonyay@rrar.com Executive Assistant Brendan Bailey, brendanb@rrar.com Facilities Manager Mary Rachel Bowling, Ext. 1016, maryrachelb@rrar.com Governmental Affairs Director Christopher MacDonald, Ext. 1025, christopherm@rrar.com Information Associate Shelia Clark, Ext. 1001, sheliac@rrar.com Store Manager Yukari Powers, Ext. 1028, yukarip@rrar.com TMLS STAFF DIRECTORY Vice President of Operations Rachel Wiest, Ext. 1019, rachelw@trianglemls.com Communications/Data Asset Manager Christy New, Ext. 1008, christyn@trianglemls.com Compliance Director Letitia Pennington, Ext. 1014, letitiap@trianglemls.com Compliance Associate Dontez Ward, Ext. 1020, dontezw@trianglemls.com Data Distribution Director Carol Hamrick, Ext. 1007, carolh@trianglemls.com Membership Associate Kristina Faison, Ext. 1005, kristinaf@trianglemls.com MLS Systems Director Kathy Matheson, Ext. 1012, kathym@trianglemls.com MLS Technical Support Associate Luke Bollenbaugh, Ext. 1009, lukeb@trianglemls.com MLS/Realist Support Associate Jennifer Horton, Ext. 1010, jenniferh@trianglemls.com Technical Operations Director Matt Nagy, Ext. 1017, mattn@trianglemls.com Training Development Manager Allan Nielsen, Ext. 1003, allann@trianglemls.com CTC/MLS Training Manager Lynne Brid, Ext. 1015, lynneb@trianglemls.com RRAR/TMLS MEMBERSHIP/ FINANCE DEPARTMENT Membership/Finance Director Randi Clodfelter, Ext. 1021, randic@trianglemls.com Finance Associate Pat Long, Ext. 1018, patl@trianglemls.com Finance Associate Jill Pressley, Ext. 1011, Jillp@rrar.com Membership Associate Kelly Hunsucker, Ext. 1013, kellyh@trianglemls.com
president’s message
continued from page 3
Ethics is that set of standards by which we should all adhere to in our daily practice of our trade. But often, I hear from REALTORS® saying they just don’t want to take the time to ‘get involved’. And I would say to them I would much rather be held to certain standards by those within our industry than by some other regulatory agency. Our friends at the Real Estate Commission keep us on tract and informed of the state laws and rules that govern our industry. But when it comes to our Code of Ethics, it’s up to us as members of our Association to make sure that we all are guided by the same set
of practices and standards. Please know our Code of Ethics and strive to incorporate the Code into your daily practice of your profession.
There are many things that are going on every day at our Association. Our building is constantly filled with our members attending Committee meetings,
Council meetings, education sessions, seminars, participating in different philanthropic drives and more. We are currently seeking names of those that may be interested in attending our Leadership Academy for 2016. If you, or someone you know may have an interest in honing their leadership skills, please give us a call to learn more about our Leadership Academy. Know there are many benefits that come with your Association membership and so many ways you can become an involved REALTOR®… and yes; MLS membership is important too!
Wednesday, October 7 11:00 am - 4:00 pm
FREE seminar, lunch provided REGISTER to reserve a seat today! Ever feel like you’re just maintaining the status quo as a REALTOR®? Are your plans for improvement put on hold by always being in a hurry and taking care of each new crisis?
Presenting a simple, effective process for getting the results you want - Grow, Cultivate, Prune and Harvest!
Using the analogy of a successful gardener, renowned speaker and author, Jones Loflin, leads this interactive session packed with practical strategies you can apply immediately to create a more desirable future. Jones’ passion for success is instantly infectious and he will have you laughing from his first sentence. Special thanks to:
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REAL ESTATE TRENDS October 21, 2015
Our Industry—Real Data & Direction Jonathan Smoke, Chief Economist REALTOR®.com
Future of Triangle Transit Richard C. Adams, PE Kimley-Horn The Raleigh Regional Association of REALTORS® is proud to present the 8th Annual Real Estate Trends. This highly anticipated event will include an update on market performance for the first three quarters of 2015 and a discussion of current and future trends in the industry.
8:30am - 9:00am 9:00 am - 9:30 am 9:30 am - 10:00 am 10:00 am -10:15 am 10:15 am -10:45 am
| | | | |
The Triangle Market
Breakfast Jonathan Smoke Richard Adams Break Stacey Anfindsen
Stacey P. Anfindsen, TARR Report Market Update
Don’t Delay!
Reserve your seat today for this FREE event!
REGISTER by October 16th at: Questions? Contact Vicki Buckholz,
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NAR STEPS UP
SAFETY EFFORTS Knowledge. Awareness. Empowerment.
These are the core components of REALTOR® Safety. And helping our members understand the risks they face can mean the difference between life and death. To help remind us to know the dangers we face every day, to be aware of our surroundings, and empower ourselves with precautions and preparations so that we can avoid risky situations, and as part of NAR’s ongoing efforts to keep our members safe, we dedicate September to kick off safety REALTOR Review ®
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efforts. This is just the start of our commitment to empowering our members. NAR has also developed REALTOR® Safety materials for use throughout year, including: • New webinars on REALTOR® Safety, presented by industry experts. • Quarterly safety messages focusing on seasonal tips for on the job and at home, sent to Associations and brokers to share with members. • Expansion of client safety materials and resources
Customize Your Safety Strategy Many of the materials provided here are meant for AEs and brokerage offices. However, you can develop your own safety strategy if you work in a smaller office. The full safety presentation can be broken out into three separate sessions, and you can add the banner ads, widgets and other content to your home page. Let other members know about the free webinars, videos, forms and more. If you need additional assistance or suggestions, e-mail safety@realtors.org.
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USO USO Drive Drive Sept Sept 21-25 21-25
Remember RememberThose Those Who WhoServe Serve
速 速 Foundation Service Committee is holding a The REALTOR The REALTOR Foundation Service Committee is holding a USO Drive.Your Yourdonations donations will will be divided USO Drive. dividedbetween betweenan an overseasbase baseand andthe theUSO USO at at RDU Airport. overseas Airport. The TheRDU RDUUSO USO servesmilitary militarypersonnel personnel traveling traveling through serves throughthe theTriangle Trianglearea. area. WAYSTO TOHELP: HELP: Donate Donate items items or make toto WAYS make aamonetary monetarydonation donation help defrayshipping shippingcosts. costs. DETAILED DETAILED FLYER list help defray FLYERHERE HEREwith witha a list neededitems itemsand anddonation donation instructions. instructions. (Drop ofof needed (Dropoff offlocations locations listed page22of offlyer.) flyer.) listed ononpage
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Buying and selling tips from a man who flipped 3,000 homes How to work with investors by Corey Wright
Episode 11 of Modern American Realtor takes a different approach to real estate by looking at buying and selling from the investor perspective.
Partnering up with an investor can be a new and exciting venture for agents looking to build and expand their business. James Paine — managing partner at West Realty Advisors, who has flipped an REALTOR Review ®
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impressive 3,000 homes in 26 states — joined us to give expert insight into this part of our industry. Paine explains in detail how agents can make themselves and their listings more attractive to
real estate investors as well as the steps they should follow to establish lasting partnerships.
paine
Make sure you have the basics down Before clicking send on your new MLS listing, there are a few important things to note. • Does your listing have hi-res photos? • Are there detailed and full descriptions? • Did you feature additional info on special features? If you answered “no” to any of those questions, then go back and update your listing to include those highly important elements. Paine relayed that investors, like agents, are also sifting through the MLS looking for potential properties, and he lamented about the severe lack of information on many listings. In his opinion, it should be a no-brainer to spend an extra hour writing a perfectly worded description accompanied by beautiful images of the home. Don’t lose out on a potential deal or even a partnership with an investor because you didn’t take the extra time to post a superior MLS listing. Don’t lose out on a deal because you didn’t take the time to post a superior MLS listing.
Investors love when you invest, too Paine points out that investors are more inclined to work with the buyers and agents who demonstrate a significant knowledge of the property. Investors are more inclined to work with those who demonstrate a vast knowledge of the property. Seems obvious, right? But all that preparation means that not only will you have an excellent result with this property, but also investors will keep coming back to you for more in the future. Another thing to think about is that investors love it when you can assure a quick close. They love it so much, in fact, that Paine thinks it’s more important than the pricing.
one aspect of house-turning before moving on. Trust data, too. Hard data will help far more than anecdotes from your peers — and specialize, specialize, specialize. Differentiate yourself by learning one or two things extremely well. Hard data will help far more than anecdotes from your peers. We rarely hear from the investor perspective when talking about real estate. But thanks to James Paine, the Wright brothers (and our loyal listeners) learned a few valuable things about how the market works and how to conduct yourself both with investors and as one. Subscribe to the audio podcast on iTunes, and check out the video episodes on Modern America Realtor. Corey Wright is the co-founder of WingWire, a custom website and blogging service for real estate agents, and co-host of Modern American Realtor, a podcast for the modern agent. You can connect with him on LinkedIn or Instagram (@filbertsteiner).
Paine also discussed how to get a higher ROI with simple steps such as improving the kitchen and bathrooms.
Listen to the yarns of your elders Paine delved into his long history in the business (and the resulting takes alone are worth hearing). Above everything, Paine advocates patience and hard work. Learn everything so that you can learn from yourself. Make your systems one at a time, until you can master REALTOR Review ®
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Takeaways: • Investors are also sifting through MLS looking for potential properties — so make your listings the best they can be. • Investors are more inclined to work with the buyers and agents that demonstrate a significant knowledge of the property. • Trust data; hard data will help far more than anecdotes from your peers — and specialize, specialize, specialize.
The Community Service Committee has a new name! We are now the
REALTOR® Foundation Service Committee Your REALTOR® Foundation and the RFSC will continue to volunteer and serve local residents in the name of REALTORS®. Won’t you join us? Click here for info. Thank You RFSC Members for the 760 hours you have volunteered already this year!
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Seller motivation:
‘Have to’ versus ‘want to’ sellers Know what you’re working with before you waste your time
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by Tim & Julie Harris
If you want to be a top producer, then you’ve got to buckle down and focus your efforts on the dollarproductive tasks most likely to generate a financial return. If you want to be a top producer, then you’ve got to buckle down and focus your efforts. If you’re just starting out, this is even more true because just like a plane leaving the runway, you’re going to use a lot of fuel (your time and energy) just getting up to cruising altitude. Make sense? Great — then let’s move on to how and why seller motivation is a critical piece of investing your energy where it matters most, instead of just taking the first potential thing that comes along. Seller motivation is big for your real estate business — find the right, motivated sellers, and you’ll have a faster, easier selling experience. So the question is what motivates sellers? Seller motivation is big — find motivated sellers, and you’ll have a faster, easier time selling. Today, we’re going to discuss the important factors that determine how motivated any particular seller might be, as well as provide you with tips and advice on actively pursuing motivated sellers who have a true desire to list and sell their home as expeditiously as possible. Seller motivation is important, and over time, we’ve found that there’s usually a relationship between seller motivation and being overpriced. The least motivated sellers are almost always the most overpriced because, quite frankly, they’re in a take-it-or-leave-it mindset that
makes your role as a listing agent a lot more difficult. If they don’t get the offer they want, then rather than doing a price-reduction to get in line with local market values, these are the customers who just might pull the listing entirely. These are the most difficult sellers to deal with and the mostly likely to waste your time. “Want to” sellers are the most difficult to deal with and the mostly likely to waste your time.
Identifying the “have to” seller This seller is someone who doesn’t have a choice. Take a moment to make a list of those people who don’t have a choice. These are people who are in one of these motivating situations: • They are relocating. • They are getting divorced. • They are no longer able to make the payment. • There has been a death in the family. • The house needs to be sold. • They can’t afford the taxes, payment or adjustment.
Takeaways: • Seller motivation is big for your real estate business. • The important factors that determine how motivated any particular seller might be. • Unmotivated sellers have a “take it or leave it” attitude, and that can result in expired listings.
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A “have to” seller is someone who doesn’t have a choice.
Identifying the “want to” seller This seller is your neighbor who keeps telling you that if they found the right house, they’d consider a move. This friend is the polite one who says, “Sure, you can send me some emails with houses in there — if I find something I like well enough, I’ll move.” In other words, they have no real motivation. Like I said before, these unmotivated take-it-or-leave-it sellers have a tendency to overprice their home — because they know they can just walk away if they don’t get the price they want. Unmotivated take-it-or-leave-it sellers (“want to’s”) have a tendency to overprice their home. We’ve all worked with sellers who just think, “It would be nice to get this price, let’s try it.” And we all know what happens to those listings. They become expired listings. Don’t let it happen to you. Ultimately, what this comes down to is essentially a form of seller lead prequalification. There’s a relationship here between lead volume and prequalification, as well. As your lead generation abilities improve, you’re able to be a little more picky about which leads to invest your time in. And becoming a little more picky ultimately means you spend less time hand-holding the unqualified lookie-loos and more time working with motivated sellers. Tim and Julie Harris have over 20 years’ experience in real estate. Learn more about their real estate coaching and training programs at timandjulieharris.com, or tune in to Real Estate Coaching Radio every weekday at realestatecoachingradio.com. Email Tim Harris.
R A RR The RRAR Officers and Board of Directors Election begins Monday, Sept. 28 and will end Tuesday, Oct. 6
n o i t c e l E d r a Bo RRAR 2016
All members will receive an email with ballot link information on September 28. Please review the statements of candidates for BOD Officer positions followed by the statments of BOD Director candidates which appear in alphabetical order by last name. (David Cozzarelli, Diane Donnely, Judith Ann Hagopian-Edwards, Van Fletcher, Becky Harper, Linda Kolarov, Scott Hoyt, Gina Miller, Tim McBrayer, Yvonne Schaefer, Ken Smith, Renee Smith, Tom E. Smith, Eric Weaver, Glenn Weeks)
2016 Candidate for President: Mark Parker Company: Fonville Morisey Realty It has been my honor and privilege to serve as your 2015 President Elect and Board of Director for the Raleigh Regional Association of Realtors® since 2011. While serving I have gained a deep appreciation and knowledge of all that our association does for its members and the welfare of homeowners’ rights. I am even more excited to serve as the 2016 President for the Raleigh Regional Association of Realtors® and look forward to another great year! My goal is to build on the success of my predecessors and continue the legacy they have established as leaders in our community and in our industry!
Visit www.rrar.com for more details on each candidate and to read their full statements.
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ns Officer candidates
2016 Candidate for President Elect: Tom Gongaware
2016 Candidate for Secretary/Treasurer: Lewis Grubbs
Company: Allen Tate
Company: Coldwell Banker Advantage
My company has a “Why.” Why do we do what we do as REALTORS®? I think our “why” will resonate with you. We do what we do to make a difference in people’s lives.
As I learned more about our industry, I realized that more involvement in our Association would better enable me to educate and help my clients and my team and serve my colleagues by being a voice on the Board and involved at the state level.
As your candidate for President-Elect of the Raleigh Regional Association of REALTORS® (RRAR), the nation’s 38th largest REALTOR® association, I’m committed to making a positive difference in your professional life. Isn’t that one of your expectations as a member? We can do that through advocacy, public outreach, and a professional standards process designed to elucidate and enforce our Code of Ethics. REALTOR Review ®
RRAR Involvement: Currently a Director and have served on the BOD from 2010 – present; conduct new agent orientation training on the Code of Ethics. Being involved with new associates allows me to instill in them the responsibility of always doing what is right and the importance of their duties to the public, their clients and their peers. See board elections on page 16 l 15 l
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board elections
continued from page 15
RRAR 2016 Board of Directors candidates 2016 RRAR Board of Director Candidates (alphabetical order) For complete details from each candidate, please visit rrar.com
David Cozzarelli
Diane Donnely
Judith Ann Hagopian-Edwards
Van Fletcher
Becky Harper
Linda Kolarov
Scott Hoyt
Gina Miller
Tim McBrayer
Yvonne Schaefer
Ken Smith
Renee Smith
Tom E. Smith
Eric Weaver
Glenn Weeks
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The real reasons millennials aren’t buying homes: Part 1 Several common misconceptions unveiled by Bernice Ross
Many experts have argued that affordability, student loans or fear of being tied down are the primary reasons millennials are not buying homes. The real reasons, however, might be quite different from what the conventional wisdom suggests. Although many people believe that millennials don’t want to be tied down with a home, a recent Redfin study indicates otherwise. According to Nela Richardson, the chief economist at Redfin,
“92 percent of millennials who don’t own a home say they plan to buy in the next four years.” Richardson believes the big driver for homeownership is having children. In fact, the Redfin survey showed that 38 percent of U.S. millennials said they would, or have, put off a wedding or honeymoon to afford to buy a home. As Richardson says, “Mortgages before marriage.” So what is keeping millennials from entering the housing market? Here are the factors at play: REALTOR Review ®
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Student loans: not the real issue A study from TransUnion found that student loan impact on rates of millennial homeownership might be overblown. “Despite an unprecedented rise in student loan balances over the past decade, a new TransUnion study found that student loan obligations do not inhibit younger consumers’ ability to access and repay other consumer credit categories such as auto loans See the real reasons on page 18
the real reasons
continued from page 17
and mortgage compared to peers without student loans.” According to Charlie Wise, vice president of TransUnion’s Innovation Solutions Group and co-author of the study, “About 50 percent of people aged 18 to 29 have credit scores that qualify them as nonprime borrowers — a percentage that has been steady since 2005. “What has changed is lending standards, which became stricter in the aftermath of the recession.” A study from Credit Karma (based on a sample of over a million of their members), reported that consumers between the ages of 18 and 34 have an average credit score of 624, just four points above the minimum credit score of 620 to obtain a loan. Scores of 720-plus are required to obtain the best rates and terms.
Millennials don’t know how to start A study from ZeroHedge.com concluded, “While we were certainly not surprised to learn that excessive student loan and credit card debt were responsible for keeping many of America’s youth from buying their first home, we were surprised to discover that for millennials in around one-third of U.S. states, the chief impediment is apparently ‘not knowing how to start.’” The big disconnect The Harvard Joint Center for Housing Studies recently estimated that about 50 percent of the 25- to 34-year-old renters in the top 85 metropolitan areas have the income and credit scores to qualify for a mortgage today. That’s approximately 5.5 million renter households! So
how come they’re not in the market? According to Freddie Mac’s Christina Boyle, the reason is that they are misinformed about the amount of the required down payment. “Consumers persistently overestimate the size of a down payment they need in order to finance a home, and this lack of education is harming the housing market … Specifically, 38 percent of the 25- to 29-year-olds, and 42 percent of the 30- to 34-yearolds said lenders demand down payments of 15 percent.”
lending standards and millennials’ misconceptions about the amount of down payment that is required to purchase, and you have a potent combination that has resulted in reluctance to buy.
Moreover, “Roughly 60 to 72 percent of first-time homebuyers don’t believe they can get a mortgage and are underestimating their potential for qualifying for a conforming, conventional mortgage with a low down payment… The statistics for 2014 show that 1 in 5 borrowers who took out conforming, conventional mortgages put down 10 percent of less.”
New York-Northern New JerseyLong Island, NY-NJ PA Metro Area 279,239
The real reason millennials might not be buying Rob Chrane, the founder and CEO of DownPaymentResource. com, recently hit on what might be the most important reason millennials are hanging back from purchasing their first home: their fear of rejection. Many millennials were raised in an environment where everyone wins. Because of that, most are reluctant to engage in situations or activities where they might experience rejection. Furthermore, unlike the Gen Xers and the baby boomers who saw huge runups in their real estate values, many millennials watched their parents struggle with their house payments or even experienced losing their home in the last downturn. Combine all these factors together with the lack of inventory, tight REALTOR Review ®
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To understand the magnitude of this challenge, Chrane used the Harvard JCHS study to project how many millennials in several of the country’s major metropolitan areas could qualify to buy a home today. The results are staggering:
Los Angeles-Long Beach-Santa Ana, CA Metro Area 177,749 Atlanta-Sandy Springs-Marietta, GA Metro Area 162,185 Houston-Sugar Land-Baytown, TX Metro Area 140,925 Minneapolis-St. Paul-Bloomington, MN-WI Metro Area 81,680 Orlando-KissimmeeSanford, FL
58,684
Portland-Vancouver-Hillsboro, OR-WA Metro Area 48,629 Austin-Round Rock- San Marcos, TX Metro Area 41,310 Des Moines-West Des Moines, IA Metro Area 15,596 Source: DownPaymentResource.com
There is a gold mine for agents who are willing to put the time in to convert these renters into first-time homeowners. Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, author and trainer with over 1,000 published articles and two best-selling real estate books. Learn about her training programs at RealEstateCoach.com/ AgentTraining and RealEstateCoach.com/ newagent Email Bernice Ross.
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Local Market Update – August 2015 A RESEARCH TOOL PROVIDED BY TRIANGLE MLS
+ 12.9%
+ 5.7%
+ 10.2%
Change in New Listings
Change in Closed Sales
Change in Median Sales Price
Wake County
August
Year to Date
2014
2015
+/–
2014
2015
+/–
New Listings
1,887
2,130
+ 12.9%
16,459
17,258
+ 4.9%
Closed Sales
1,663
1,758
+ 5.7%
11,809
12,894
+ 9.2%
Median Sales Price*
$231,374
$255,000
+ 10.2%
$231,000
$248,000
+ 7.4%
Average Sales Price*
$275,222
$289,539
+ 5.2%
$273,044
$285,337
+ 4.5%
Total Dollar Volume (in millions)*
$457.7
$508.4
+ 11.1%
$3,224.2
$3,677.9
+ 14.1%
Percent of Original List Price Received*
97.0%
97.9%
+ 0.9%
96.8%
97.5%
+ 0.7%
Percent of List Price Received*
98.1%
98.7%
+ 0.6%
98.1%
98.5%
+ 0.4%
Days on Market Until Sale
52
36
- 30.8%
56
49
- 12.5%
Inventory of Homes for Sale
6,199
5,391
- 13.0%
--
--
--
Months Supply of Inventory
4.4
3.5
- 20.5%
--
--
--
* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.
2014
August
2015
2,130
1,887
+ 12.9% New Listings
11,809
+ 4.9% New Listings
+ 5.7% Closed Sales
2015
17,258
16,459
1,758
1,663
2014
Year to Date
12,894
+ 9.2% Closed Sales
Change in Median Sales Price from Prior Year (6-Month Average)**
All MLS
b
Wake County
a
+ 15%
+ 10%
+ 5%
0%
- 5%
- 10% 1-2008
7-2008
1-2009
7-2009
1-2010
7-2010
1-2011
7-2011
1-2012
7-2012
1-2013
7-2013
1-2014
7-2014
1-2015
7-2015
** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. | Current as of September 10, 2015. All data from Triangle Multiple Listing Service, Inc.. | Powered by 10K Research and Marketing.
For further information regarding TMLS Market Trends and Analysis please visit: www.TriangleMLS.com
REALTOR Review ®
l 20 l summer 2015
Local Market Update – August 2015 A RESEARCH TOOL PROVIDED BY TRIANGLE MLS
Entire Triangle Region
+ 7.9%
+ 8.0%
+ 5.8%
Change in New Listings
Change in Closed Sales
Change in Median Sales Price
August
Year to Date
2014
2015
+/–
2014
2015
+/–
New Listings
3,606
3,892
+ 7.9%
31,563
32,679
+ 3.5%
Closed Sales
2,959
3,195
+ 8.0%
21,000
23,037
+ 9.7%
Median Sales Price*
$208,000
$220,000
+ 5.8%
$206,000
$218,000
+ 5.8%
Average Sales Price*
$249,640
$257,843
+ 3.3%
$245,309
$256,171
+ 4.4%
Total Dollar Volume (in millions)*
$737.5
$822.4
+ 11.5%
$5,144.9
$5,895.5
+ 14.6%
Percent of Original List Price Received*
96.1%
96.8%
+ 0.7%
95.9%
96.6%
+ 0.7%
Percent of List Price Received*
97.7%
98.1%
+ 0.4%
97.5%
98.0%
+ 0.5%
65
49
- 24.6%
67
60
- 10.4%
Inventory of Homes for Sale
14,188
12,316
- 13.2%
--
--
--
Months Supply of Inventory
5.6
4.5
- 19.6%
--
--
--
Days on Market Until Sale
* Does not account for seller concessions. | Activity for one month can sometimes look extreme due to small sample size.
2014
August
2015
3,195
2,959
+ 7.9% New Listings
21,000
+ 3.5% New Listings
+ 8.0% Closed Sales
2015
32,679
31,563
3,892
3,606
2014
Year to Date
23,037
+ 9.7% Closed Sales
Change in Median Sales Price from Prior Year (6-Month Average)** Entire Triangle Region
a
+ 10% + 8% + 6% + 4% + 2% 0% - 2% - 4% - 6% - 8% 1-2008
7-2008
1-2009
7-2009
1-2010
7-2010
1-2011
7-2011
1-2012
7-2012
1-2013
7-2013
1-2014
7-2014
1-2015
7-2015
** Each dot represents the change in median sales price from the prior year using a 6-month weighted average. This means that each of the 6 months used in a dot are proportioned according to their share of sales during that period. | Current as of September 10, 2015. All data from Triangle Multiple Listing Service, Inc.. | Powered by 10K Research and Marketing.
For further information regarding TMLS Market Trends and Analysis please visit: www.TriangleMLS.com
REALTOR Review ®
l 21 l
summer 2015
The RRAR Safety Seminar was held on Sept. 10th
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The true key to happiness. The RRAR Calendar!
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Project Angel Tree 2015
The REALTOR® Foundation Service Committee is proud to sponsor Project Angel Tree 2015. Over 20,000 gifts have been distributed to deserving children in the past. In order to reach our goal of 800 angels this year, your support is needed more than ever!
Adopt your angels — beginning October 1-31 Gifts to RRAR by December 1 REALTOR Review ®
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We are dedicated to your success. As a member of RRAR you have FREE admission to the best source of real estate information and training in the Triangle. Click here to make your membership work for you!
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