You shouldn’t be.
As a real estate team, we find ourselves tip-toeing between two drastically different categories of marketing:
(1) On the one hand, we want to celebrate our client successes and provide hope for individuals and households looking to enter the marketplace.
(2) On the other hand, we also want to inform our network of the real-time data, although it is alarming.
“70% of people say they lack necessary skills to contextualize housing data to their personal circumstances.”
One of my regrets as a licensed Realtor® has been failing to provide adequate insight to keep people informed. To be frank, most people find the data to be boring. It isn’t sexy and it doesn’t attract much of a following. More than half of people admit they lack any interest in housing data, and 70% of people say they lack necessary skills to contextualize housing data to their personal circumstances.
“The real estate tactics and mindsets that worked in our industry just a couple years ago no longer work today.”
So why bother blogging about this topic? The reality is that the real estate tactics and mindsets that worked in our industry just a couple years ago no longer work today. The market shifts have been staggering. These data points are alarming, but nevertheless, relevant to everyone:
In 2013 – Indiana household incomes averaged $46,158 and the average Indy sold price was $97,775. Today, the average income is $56,303, but sold prices have jumped to $210,000. As the median “point of entry” continues to rise, median household incomes are struggling to keep up with the rise in housing costs.
Buyers who decided to wait 2 years to enter the real estate marketplace saw a 29.3% price increase between 2019 and 2021 in Indianapolis. Can you imagine having ~$47,600 in equity just by purchasing a house sooner rather than later?
Unfortunately, we can only grasp these numbers after the fact, but it is clear that the income and housing-cost gaps are widening at an alarming rate. If these trends continue, first time home buyers are at a greater risk of being left behind before they even have a chance to enter the marketplace.
“The data actually empowers the Realtors® who are willing to engage with them.”
Luckily, the data (and the appropriate interpretation of this data) actually empowers the Realtors® who are willing to engage with them. As a team, we are still producing positive outcomes for our clients. Whatever real estate team you decide to work with is completely up to you, but it has never been more urgent to work with a team who has the tools, knowledge, and experience to know how to guide you appropriately.