Dear Realtor: Welcome to this month's edition of Realtors' Edge whose purpose is to ascertain that as a professional REALTOR you are well informed about things that can impact your income, your reputation and your career, by providing the best of news and perspectives on key issues that affect the real estate industry. We make you smarter!
May 30, 2010 / Volume 2 / Number 18
Housing Stays Highly Affordable for Fifth Consecutive Quarter
Nationwide housing, bolstered by favorable interest rates and low house prices, hovered for the fifth consecutive quarter near its highest level of affordability since the series was first compiled 19 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
The HOI showed that 72.2% of all new and existing homes sold in the first quarter of 2010 were affordable to families earning the national median income of $63,800, slightly higher than the previous quarter and near the record-high 72.5% set during the first quarter a year ago.
“Today’s report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within reach of more households than it has for almost two decades,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy.”
Indianapolis-Carmel and Youngstown-Warren-Boardman, Ohio-Pa., shared the ranking as the most affordable major housing markets in the country. In Indianapolis, which has held this top ranking for nearly five years, almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,700. In Youngstown, the same percentage of homes were affordable to households earning a median $53,500.
Also near the top of the list of the most affordable major metro housing markets were Syracuse, N.Y.; Dayton, Ohio; and Grand Rapids-Wyoming, Mich.
Five smaller housing markets posted even higher affordability scores than Indianapolis and Youngstown. Among them, Bay City, Mich., where 98.7% of homes sold during the first quarter of 2010 were affordable to median-income earners, was the most affordable market in the country. Other smaller housing markets near the top of the index included Kokomo, Ind.; Davenport-Moline-Rock Island, Iowa-Ill.; Sandusky, Ohio; and Elkhart-Goshen, Ind., respectively.
New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the first quarter of 2010. Slightly less than 21% of all homes sold during the quarter were affordable to those earning the New York area’s median income of $65,600. This was the eighth consecutive quarter that the New York metropolitan division has occupied this position.
The other major metro areas near the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Redwood City, Calif.
San Luis Obispo-Paso Robles, Calif. was the least affordable of the smaller metro housing markets in the country during the first quarter. Others near the bottom of the chart included Ocean City, N.J; Santa Cruz-Watsonville, Calif.; Napa, Calif.; and Flagstaff, Ariz.
For more information, visit www.nahb.org. Printed by permission of RISMEDIA. May 29, 2010.
Strengthen Your Business – How to Succeed In the Green Industry
RISMEDIA, May 27, 2010—Most residential brokers begin their careers in a similar way. First they get licensed, work to develop their expertise and slowly build their businesses. In a booming market, one can make a good living even as they build their specific knowledge and experience. But the best careers transcend boom/bust cycles and outlast the latest technology and the current “in” transaction. Relationships are key, but adding specialty areas strengthens careers, too.
The facts are in. Energy efficiency and the green movement in America is a reality that’s here to stay. Ignore it, and you’ll likely lose money and clients. Embrace it and become a networked expert to differentiate your business and gain credibility among your clients and prospects.
Working with green properties does not require expert knowledge on all green and resource efficient aspects of residential properties. Because green expertise is varied, it requires working with architects and engineers, building materials and landscaping experts, and lenders and appraisers. Aim to build general knowledge and a network of experts on whom you can call. From the client’s perspective, you are still providing the added value.
Here are a few tips to get you started.
Get educated
Earning a green designation or certification distinguishes you, creates credibility and provides you with a foundation for serving clients and continuing your education.
-NAR’s Green Designation is a great place to start. Designed for real estate professionals, the program requires that brokers complete a 12-hour core course plus a six-hour elective in either a residential, commercial or property management specialization.
-The United States Green Building Council (USGBC) and the National Association of Home Builders also have designations for designers and builders. These programs focus on sustainable design, green building practices and how to get a building through the certification process. These are important resources and worth researching.
Become the source of the sources
Once you’ve earned a green designation or certification, stay up-to-date as green technology, practices and policies change. Attend seminars and panel discussions, read newsletters and network with green industry professionals. This network can keep you plugged in with like-minded professionals and create a new prospective client base.
-Join a green organization such as your local USGBC chapter or Green Drinks. (http://www.greendrinks.org)
-Create a network of green industry professionals. Throughout the course of a green transaction, agents can add considerable value by providing access to the right green industry professional. Network with:
Hit the streets
Look for referral or co-marketing opportunities where both parties benefit.
-As you build your green network, introduce yourself to active green businesses that offer sustainable products or services.
-Stay plugged in with like-minded individuals who can steer business your way and who are prospective clients themselves.
-Find these businesses through Google searches or by canvassing your region.
-Attend green conferences and related trade shows to continue growing your green contacts.
Adjust your marketing approach
After your education and while you are building your green network, update all your marketing materials with approved logos and green language.
-Update your website, business cards, flyers and post cards to reflect your knowledge and training with energy efficient buildings.
-Utilize your social media outlets to post about relevant sustainable issues.
-Register on green directories such as www.greenandsave.com and www.greenhomeguide.com. These sites have areas specific to REALTORS® with green credentials.
Practice what you preach
Your day-to-day business practices should become more sustainable. Use environmentally-friendly office materials and remember to reduce, reuse and recycle.
-If printing is required, use Forest Stewardship Council (FSC) certified paper with a high post consumer waste content and soy based inks – and say you are.
-Minimize driving clients around in your car. Work with your clients to narrow property searches- first by using the Internet and then by only visiting the top properties to save time, money and gas.
Al Medina is director of NAR’s Green Designation. Established by the Real Estate Buyer’s Agent Council (REBAC), a wholly-owned subsidiary of the National Association of REALTORS®, the Green REsource Council was founded to make the knowledge of green real estate practices available to everyone. NAR’s Green Designation is a real estate designation designed for residential, commercial and property management professionals looking to green their businesses and their lives.
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