Monthly Real Estate Marketing Review: Tax Code Impacts Real Estate Pros and Home Value Trends
By Carolyn Berk
About Agent Basics
From shifting real estate marketing tactics, to new public policy, to emerging home buying and selling trends, real estate agents and brokers have a great deal of developing stories to follow if they want their business and marketing to adapt with the times.
To help keep you up-to-date on everything you need to know, here are the most important real estate marketing news items.
In the final month of 2017, real estate professionals had their eyes on the year ahead. Plenty of marketing news and trends in December pointed to a swiftly evolving real estate marketing scene in 2018. Let’s dive in!
Total Home Values in the U.S. Reach the Stratosphere
Zillow reported that the total value of all U.S. homes in 2017 is a jaw-dropping $31.8 trillion. Just how big is that number? That’s more than 1.5 times the Gross Domestic Product of the United States!
Zillow provided a thorough breakdown of those numbers, and included the following high level stats:
- Homes in the Los Angeles and New York metro areas are worth $2.7 trillion and $2.6 trillion, respectively; that’s the size of the U.K. and French economies.
- Renters spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016.
- Total U.S. home values have grown $1.95 trillion over the past year — more than all of Canada’s GDP or two companies the size of Apple.
Of course, homes do not have equal value across the country. Zillow also provided a breakdown of where in the U.S. home values have been rising over the past 20 years:
Home Buyers Hold the Cards in the 2018 Housing Market
For many real estate experts, recent real estate marketing news has indicated that 2018 belongs to home sellers. According to predictions published in Inman, the following factors will influence a strong market for sellers:
- Low housing inventory
- High demand from buyers (according to Redfin, 25% of homes sold within two weeks or less during the 2017 buying season. This rapid turnover is expected to continue in 2018)
- A growing segment of millennial home buyers contribute to driving up demand
However, the article states that rising mortgage rates and changes to the tax code may put some power back in home buyers’ hands. In fact, Inman says the new tax code in particular may de-incentivize home ownership. This, Inman says, may give home buyers more room to negotiate and give them a leg up in the market.
What The Tax Cuts and Jobs Act Means for Real Estate
Not surprisingly, the newly-passed tax code will have a far-reaching impact on the entire real estate market. The National Association of REALTORS® (NAR) dissected what this all means for the housing market, home buyers and sellers, and real estate professionals.
According to NAR, the new tax code is a mixed bag for the real estate industry. On a positive note, NAR says its “efforts helped save the exclusion for capital gains on the sale of a home and preserved the like-kind exchange for real property. Many agents and brokers who earn income as independent contractors or from pass-through businesses will see a significant deduction on that business income.”
However, NAR says it’s concerned that the final bill diminishes the tax benefits of homeownership and will cause adverse impacts in some markets. You can see NAR’s full, detailed breakdown of the new tax code’s impact here.
Walkability Matters to Millennials and the Silent Generation
In more real estate marketing news, NAR also turned its focus to growing trends among different age groups of home buyers. According to NAR, home buyers from the millennial and silent generations are the most interested in purchasing a property in a walkable community.
In a survey, 62% of millennials and 55% of the silent generation says walkability is an important factor when choosing a home. These young and old generations prefer smaller homes within easy walking distance from shops and restaurants.
NAR also points out that Gen-X and Baby Boomer home buyers still prefer suburban communities. In fact, 55% of both of these groups said they don’t mind longer commutes or driving to amenities if it means that they can live in a detached, single-family home.
NAR presented more details about each generation’s housing preferences in this infographic:
The Statistics Behind Effective Email Marketing
Email continues to prove to be a valuable tool for real estate agents and brokers who want to spark more lead generation and maintain relationships with prospects and converted clients.
Social Media Today shared an infographic from EveryCloud which breaks down best practices for email marketing campaigns, in addition to providing valuable insights into how marketers are using email. The infographic also sheds light on audience email preferences that keep them continually engaged and interested in email campaigns and newsletters.
It’s no surprise that personalization continues to resonate with email recipients and results in a higher click-through rate (CTR):
See the full infographic on SocialMediaToday.
Brokers Go Big With Their Closing Gifts
In a more fun piece of real estate marketing news, The New York Times recently showcased real estate brokers who invest more than most in their closing gifts for clients. While closing gifts like a puppy, personalized bobblehead dolls, or rare paintings are not a realistic option for most brokers, the article highlights that the key to gifting success is personalization based on each client’s unique interests.
Closing gifts that show you were listening to your client are always a great way to generate positive reviews and referrals. Be sure to explore this guide to 50 (more reasonable) closing gifts that will leave a lasting impression on your clients.
See how easy it can be to set up your real estate website in this explanatory Placester webinar for agents:
Published on January 5, 2018
Written by Carolyn Berk
I am a Content Marketing Associate at Placester, where I regularly share helpful real estate marketing strategies through Placester's Academy.