About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.

Salvage the Market and Maximize Online Presence

Welcome to the first week of a ten week series based on Stefan Swanepoel’s Real Estate and Technology TRENDS Reports.

Each week we will highlight one real estate or one technology trend that is paving the way for industry leaders across the globe.  Swanepoel’s annual reports have become the annual official industry anthology and focuses on the trends, shifts and changes that are shaping the real estate industry.  Below is a brief overview of Trend # 10, Salvaging of the Housing Market.

The health of the US economy plays a strong role in the real estate industry and what’s clear is that residential real estate is a huge part of the picture and a very significant part of the solution.  According to the Zillow Home Value Index, in October of 2012, home values increased 1.1 percent from the prior month and showed a 4.7% increase over a 12 month period.  This marked the twelfth consecutive month of home value appreciation, confirming a recovery in the housing market.

The housing market will continue to recover with forecasts as follows:

  • Existing and new home sales up 8%
  • Home price increases approaching 5%
  • Residential rents increasing from 2.5% to 6% (depending on the market)
  • Continued under-building of new construction constrained by developed lot availability and lenders
  • Interest rates rising – no place to go but up

Prerequisites for these forecasts:

  • Continued job growth
  • Continuity in the deductibility of both mortgage interest and property taxes on primary dwellings
  • Leadership rather than politics from Washington, D.C.

According to Lawrence Yun, Chief Economist & SVP of Research, NAR; the improvement in home sales could be the start of a multiyear recovery lasting four to six years.  The factors that support housing will continue to build. Jobs are on the rebound, stock market wealth has nicely rebounded and home prices have recovered.  Despite these factors, policy changes can greatly impede the recovery.  Changes to mortgage interest deduction, mortgage credit accessibility and the requirement for higher down payments can potentially shut out 20% of buyers that could have potentially qualified in a normal housing market.  Overall, we can see improvement or stability in all major categories and growth can be expected as we move forward.

For a full copy of The Swanepoel TRENDS Report, visit www.retrends.com

About The Real Estate Group

The Real Estate Group (TREG) "Partners in Excellence"

The mission of The Real Estate Group, LLC is to be Hampton Roads finest provider of real estate services. Our goal is to create a company that provides absolutely the best service for our customers by fostering an environment of teamwork and a common vision. The Real Estate Group, LLC consists of an accomplished team of skilled professionals who take pride in their work and their company. We work hard to go beyond the expectations of our customers, agents, and employees.