Realtors, Consumers React To Housing Growth Over The Next Year
The housing market continues to recover with an inconsistent pace, but recent studies show that both real estate agents and consumers alike feel the recovery is sustainable. The National Association of Realtors (NAR) saw that 69% of realtors expect profitability to rise over the next year, which means competition, will be ruthless.
“Two out of three real estate firms expect competition in the marketplace to increase, both among firms and nontraditional market participants,” said Paul Bishop, NAR’s VP of research. “Because real estate is an entrepreneurial field, some experimentation in business models is likely when the market is in a recovery phase.”
Many firms are now aggressively hiring new recruits to beef up as the market continues to show promise. Business is picking up around the country and as a result, 45% of firms are actively recruiting new agents. Over the next year, 6 in 10 firms expect profitability.
Firms aren’t the only ones with a positive view of the market. Although the market has started to slow in recent months, consumer attitudes are proving consistent with a recent slowing of market trends. Americans attitude of the housing recovery has plateaued, likely due to concerns regarding the potential tapering of the Federal Reserve’s asset purchases.
Statistics show that Americans are well attuned to the market and are cautiously optimistic about the year ahead. Respondents are most optimistic about price gains over the next 12 months and 46% said they feel it would be easy for them to get a home mortgage today.