Housing experts predict major waves in the housing market as we know it due to:
- The housing supply
- Demand for new types of mortgages
- Millennial home buyer needs
Keeping your finger on the pulse of housing market trends gives your business a stream of interesting and relevant ideas to create more effective marketing.Here are the ten important changes in the housing market that you can turn into micro-segmented campaigns for your mortgage advertising.
1. More Homes for Sale
The housing supply has been notably limited after the housing bubble burst and many longtime homeowners remain content staying put. The next year is trending toward an increase in the overall housing supply with construction projected to be on the rise. This upswing will bring great relief to your clients who have grown frustrated searching for a home that meets their needs and budget.
Target your content marketing efforts to first time home buyers who are looking for the right starter home. Share stats about the increases in construction along with longer whitepapers on the mortgage application process. This will keep your business top of mind as clients begin looking for a home.
2. Home Price Increase Slows
After many years of the average home price increasing by more than 6%, experts forecast a much anticipated slow down. Lenders project only an increase of 4% for median home prices for the coming year. Mortgage researchers cite the number of new building applications and permits as the major influence for this slowdown.
The influx of new permits predicts an increase of new homes on the market. The outlook is positive for more homes in an affordable price range. This is something to advertise to your prospective homebuyer clients with email marketing.
3. New Tax Code
Under the newest tax legislation, homeowners’ monthly housing costs increase due to the scaling back of deductions that previously offset mortgage interest and property taxes. The standard deduction was also doubled, making fewer homeowners eligible for the tax benefit of owning property.
This sea change is imperative for every homeowner to understand and shouldn’t require reading the tedious tax code.
Consider featuring it in a blog post or email blast to help inform clients of your knowledge and how your services can help find the best payment terms despite the unfavorable tax code.
4. Price Cuts on High Priced Homes
For buyers with more to spend, there is good news. Since the start of the year, there have been significant price cuts on the highest third of homes for sale in larger metro areas. Experts believe that this positions the national housing market to be swinging back toward being a more balanced buyer’s market.
Use this news in two campaigns; the first targeted at buyers by giving advice about the improvements ahead, and the second intended for sellers who should capitalize on the market now while it is still in their favor.
5. Affordability Lowest in a Decade
Housing affordability is completely stretched as home prices continue to grow faster than wages increase. Home prices are the least affordable they have been on record since 2008 during the financial crisis. We are in a period of great uncertainty regarding interest rates and clients will find it very helpful to have you as a guide as they navigate the decision between fixed-rate and adjustable-rate mortgages.
Use your blog or retweet articles written by other experts on topics like fixed-rate versus adjustable-rate mortgages and other customer interests to keep your prospects engaged with you as an expert.
6. Mortgage Rates Trend Upward
Mortgage rates are predicted to continue to rise throughout the year and it is estimated that the 30-year fixed will average 4.7 percent. Cheap mortgages are no longer commonplace and it will be helpful to clarify these trends with any prospective home buyer.
Advertise yourself as an educator and resource to help buyers better understand the complex housing market during these financially turbulent times.
7. Home Values Climb
The median US home value rose 8.7 percent to $215,600 this year. It is part of the general climb that began in 2015 that has tapered out a bit but is still rising. Baltimore, DC, and Houston show the least percentage growth of median priced homes.
As home values continue to rise, look into the pace for your locality and educate clients with the pertinent information that may affect their ability to close on a loan, such as their credit score.
8. Student Debt Delays Home Ownership
The common belief that increased student debt has made home ownership impossible for most buyers under the age of 35 is wrong. Student debt doesn’t have much of an impact on whether or not the debt holder will eventually own a home. Home ownership is most often delayed rather than taken out of the picture and young, college-educated buyers are still a target for your mortgage marketing. They are likely interested in the less traditional non-QM loans.
Connect with Millennial homebuyers through social media and localized digital ads and find out how to increase QMs for Millennials.
9. Number of Millennials Buying Homes Actually Rising
Just like the fallacy that student debt is a roadblock to homeownership, Millennials have been mistakenly tagged as not wanting to buy homes when in fact, 67 percent believe owning a home is necessary to live the American Dream. Make sure to target marketing efforts toward the Millennial buyer as they may make up 43 percent of homebuyers who are looking for lending options. As a mortgage professional, begin to direct your attention to this new market segment who tends to favor digital content, email, social media, and flexibility.
10. New Choices for People with Bad Credit
Many lenders are offering interest-only mortgages and loans with limited income documentation. Non-qualified mortgages are likely a new idea for most consumers. Outlining the types of mortgages available, how individuals qualify for them, and offering consulting services to help people choose the best option would be a great content marketing resource you can make available after visitors reach a lead capturing page.
Individuals with bad credit can also seek out credit advice from a trusted credit repair specialist. One of the best new mortgage marketing ideas is to get credit repair training and make helping individuals improve their credit scores a part of your mortgage business. A better credit score leads to qualifying for a better loan. It's a win-win for your business and for the client’s financial future.
Focus on creating a digital mortgage advertising campaign right now and see the evidence of its success as revenue increases, you retain more clients, and clients sing your praises and suggest your business to family and friends.
Read about more opportunities to grow your mortgage business!