August 12, 2021 | Market Update

Market News 8-13-2021

Luxury Homes Reach Record Sales

Home sales in the U.S. priced above $1 million surged 244.4% YOY in May, according to the National Association of REALTORS®. The NAR’s data also shows that sales at this price point are outpacing sales in the $250,000 to $500,000 range, which saw a 47.9% increase since May 2020. Additionally, the luxury market is seeing more bidding wars than usual due to the shortage of high-end homes. What’s the cause? Well, wealthy Americans have done well during the pandemic due to the rising stock market, increasing demand for high-end housing. And since the onset of COVID-19, Americans have wanted more space, meaning bigger homes to accommodate remote work.3

Google Your Way to More Clients

With over 87% of buyers and sellers using Google, it is vital for agents to use the tool to their advantage. But how? The answer is Google My Business. Using the tool is free and relatively easy to set up, not to mention how it can help you grow your business. Begin by visiting https://google.com/business/ to claim your business and build your profile. Add your business name, address, contact info (phone, email, website, social media accounts, etc.), and hours for potential customers. Next, optimize your profile, ensure it’s complete and polished, like a resume for your business. Also, ensure you have reviews. Get them from clients and lenders, inspectors, title companies, and other partners. You can also obtain reviews from vendors you use, like lenders, inspectors, title companies, etc.4

Millennial Home Buyers Leaning on Baby Boomer Parents

Thanks to high demand and limited supply, home prices continue to rise, leading to Millennials purchasing homes at lower rates and later in life than prior generations. They are also turning to older generations for help. According to a study from Legal & General, a financial services company, 43% of people under 35 received aid from parents or other family members when buying a home. With home prices over 16% higher than last year (the most significant gain in 30 years), Millennials’ high rates of student loan debt, and Baby Boomers controlling 53% of the wealth in the U.S., it seems to make sense. Baby Boomer parents feel that a home is a secure investment and a way to ensure the longevity of their incomes. Experts indicate they expect to see these gifts from parents continue to rise as long as home prices remain high and tax laws don’t change.5

Sources: 3magazine.realtor, 4inman.com, 5nbcnews.com