September 16, 2021 | Market Update

Market News 9-17-2021

Master the Art of Conversing with Clients

Clear and effective communication is essential for real estate agents, but even the most seasoned industry professionals struggle with difficult conversations. To help you navigate these critical discussions with ease, we’ve pulled a few tips from the book Exactly What to Say for Real Estate Agents.

  • Add some rejection-free “magic words” to your repertoire. The goal is to remove pressure, build intrigue, and drive the client to seek more information.
  • Ask questions: A seemingly innocuous recommendation is actually vital to relationship building and fact-finding. Questions start conversations. Conversations build relationships. Relationships create opportunities, and opportunities lead to decisions.
  • Choose your words carefully. The authors include a field guide that applies their 30 “Magic Words” to prospecting, working with buyers and sellers, closing, and overcoming common objections. Examples include asking clients to “Just imagine.” This request helps the subconscious brain envision making a decision. Another example is using the term “most people.” Although people don’t like to be told what to do, they find comfort in knowing others have had success when making the same decision.1

Americans Want to Socially Distance Their Homes

Home preferences are changing for Americans since the pandemic. According to a new study from Pew Research Center, six in 10 U.S. adults would now prefer to live in a community with larger homes that are further apart. Before Covid-19, Americans desired smaller homes closer together and within walking distance of schools, stores, and restaurants.2

Residential Construction Employment Is Growing

Good news for the housing industry — residential construction employment grew by 17,400 jobs in August, an increase from July. So, what’s in it for the industry? The rise in employment will help builders get caught up on backlogs of orders, which will help ease supply constraints.

These recent numbers show that homebuilders are taking control of building costs and labor shortages, allowing them to support an increase in new construction. To keep the momentum going, builders will need to continue to attract skilled labor, mainly by increasing wages. After all, more labor equals more new homes.3

Homeowners Are Upgrading Garages with Car Charging Stations

The demand for residential car charging stations continues to rise as electric vehicles gain popularity. The cost varies greatly with options ranging from installing a simple, 220- or 240-volt outlet to building elaborate systems that include solar panels and battery walls. With some homeowners spending up to $13,000, they feel they are saving that money on gas.

According to Pew Research, electric vehicles make up roughly 3% of U.S. car sales, and with the executive order signed by President Biden in August that calls for 50% of car and truck sales to be electric, hydrogen fuel cell, or plug-in hybrids by 2030, the at-home charging station trend may become commonplace.4

Why Gen Z Cares the Most About Homeownership

A recent survey done by Gen Z Planet shows that 87% of Gen Z participants expressed interest in owning a home sometime in the future; only 63% of millennials said the same. Gen Z buyers have learned from the mistakes (such as student debt and the recession of 2008) of generations before them and have also gained consumer financial education since the housing crisis of 2008.

In addition, Gen Z buyers don’t object as strongly to purchasing starter homes and renovating as millennials, who tend to buy move-in-ready homes. This could mean an increased market shift toward Gen Z ownership soon, especially in smaller, more affordable locations.5