Real Estate Market Trends You Should Know

Now that the year is about to end and a new one is about to start, it is always advisable for realtors to know the real estate market trends that are expected to happen in the next few months and in the coming year. The year 2017 may not be far from over but every realtor knows that this is not the year everyone in the real estate business wants it to be.  

The market trends in the real estate market will serve as guides for a realtor when making the marketing plan and financial decision. If you are a realtor, here are the trends in the real estate market that you need to keep an eye on: 

  1. The decline of property values

After World War II, property values are trending upwards, luxury homes in Fort Lauderdale are now quite expensive. But since 2006, the property values started to decline. In fact, it dipped down to almost 39% somewhere between the years 2007-2008, though the average decline between those years appears to be lower. 

  1. Buyer agency growth

Before, an agent tends to represent a single party only, either the buyer or the seller. That changed in the 1990s when the concept of buyer agency became widely accepted as both practical and uncomplicated. Buyer agency means that the realtor will work only in the best interest of the buyer. Before the buyer agency became popular, the state law assumes that the realtor is working for the seller. 

  1. Lower commission rates

A study in 2005 presented by the Government Accountability Office, it was found out that a realtor’s commission rate tends to be between 5 % to 7% of the property’s selling price. In 2007, the commission rates tend to go down. However, other alternatives for getting other sources of income for the realtor were put into practice. On top of the sales commission, they can now ask for a flat-fee, hourly rate, and for sale by owner tools. 

  1. Marketing trends

The internet becomes the most powerful marketing tool over the past few years. It will continue to be the main source or real estate property listings and market information in the coming years.  The National Association of Realtors estimates that 87% of the home buyers use the internet during their home buying process. They also said that one-third of the home buyers found their dream house online.