Los Angeles Housing Market

Housing Forecast for Los Angeles 2018 to 2020

The real estate/housing market in Los Angeles enjoyed good growth during 2017. And predictions are for higher prices and good conditions for sellers.

However, the stats for January 2018 were a little sobering. According to curbed LA,  only 4,847 homes were sold in LA County. That’s an alarming drop from 6,613 in December and much less at 5,188 sales in January of 2017.

Prices grew $41k this spring of 2018. Predictions are for continuing high prices due to ongoing shortages.

The wild fires had an effect, in LA County and hitting regions such as Sonoma and Napa valley regions hardest. The insurance driven recovery should revive the housing market in LA.

The losses were estimated at nearly $10 billion with a $500 billion hit to the economy. The numbers are similar to the floods experienced in Houston TX or Miami FL .  Some homeowners are discovering they weren’t covered sufficiently with their home insurance.



The California Association of Realtors Outlook

CAR reported that:

  • single-family home sales fell 7.6% in January down to 388,800 and down 2.9% from January 2017.
  • January’s statewide median home price was $527,800, down 4.0% yet still 7.3% higher than January 2017.
  • entry level homes in California rose to $220,000 in California, up more than 10 percent from 2017 when entry-level home averaged $200,000.
  • the DOM for a single-family home remained low at 27 days in January, compared with 36 days in January 2017.

The California Department of Insurance said the fires cost $9.0 billion in insurance claims so far, which was 3 times the $3 billion claimed previously.  For the next few months however, California housing will be in extra short supply.



Fires might actually be an unfortunate distraction from the housing crisis that’s existed for many years now in Los Angeles and across the whole state of California. The state just can’t seem to get a handle on the need for more homes.

The OC Register reports that CEQA lawsuits against developments are a serious issue for housing, especially in the LA area. As Los Angeles residents suffer financially, and while housing crash rumors float around, prices are rising.  You’ll need an income of $120,000 to buy a home in LA in 2018.

Prices of condos in downtown LA are reportedly $90,000 higher than last year.

Insurance Companies Fielding Claims from Homeowners

Is it instinct or just common sense that California will continue as the most desired place to live on the planet? Does the climate in San Diego, Sacramento , Bay Area, and Los Angeles along with the high paying jobs, interesting geography, lifestyle and recreation, California is a magnet for people around the world.




Infographic Courtesy of CAR.org – LA Buyer Profile

In 2017, real estate sales in 2017 in California eased however house prices remain high in Los Angeles, Orange County, San Diego, and San Francisco / Bay Area housing markets which had previously approached prerecession highs. But will they rise further and is this the right time to invest in an income property?

The short answer is Yes. Houses for sale in Los Angeles County and Orange County are in short supply and new residential development is not keeping pace. It would take a market crash to stop the price rise and even then it would only be for a few years. For wealthy investors, a few years is well worth the wait. The question is where to get a realistic price? The hunt continues.



Santa Monica House Prices

Average House for Sale Still Sells

CAR reports the average house price in LA rose about 10% in late summer of 2017. San Bernardino, Riverside, and Orange County had strong price growth of 8% to 10%.   Contrast that with the drop in the Bay Area of more of about 3% or $14k to $33k for detached homes and you realize LA is a more attractive housing market for property investors.

The effect of the fires will be to reduce availability and raise prices. So not much relief in site for the LA market. As in most housing markets across the US, millennials have been shut out of the markets. They’re in their child bearing years and have saved up small fortunes to ready them to finally purchase. They’ll be buying in LA or Orange County somewhere.

Sales volume actually increased 11.5% in the last month, so homeowners appear to be loosening up finally.  Realtors are wondering how they can get people to sell their homes. Inventory is the big story for the fall of 2017.

This graphic from CAR.org’s latest report shows inventory in California is sharply down from last year. Sales above $500k were up up. Active listings in the lower price ranges are down considerably ( -10% to -28%).

Screen capture courtesy of CAR.org

And buyers
real estate investors are hopeful they can find the right property in the right city or zip code. Zillow has forecast house prices in Los Angeles to rise throughout 2018 while CAR shows it moderating. A lot depends on the political climate and interest rates.

Screen Capture courtesy of Trulia

We should keep in mind that only 30% of Californians own a home so the door is wide open for opportunity and new sales, particularly with first time buyers.  The problem is that homeowners don’t want to sell and buyers can’t afford the prices.

Why are Buyers Buying in California?

CAR’s 2016 survey showed only a small portion of buyers buy property as an investment. Only 13% are real estate investors.

California Home Buyer Survey Buyer Survey – Screen Capture courtesy of CAR.org

The US economy will pick up steam and Californians will be buying a home again even if they have 1 hour+ commutes, higher interest rates, and out migration to remote towns.

Check out the top housing factors below affecting housing prices in discover a better homes for sale search process.




The Telling Stats about LA’s Forecast

If buyer’s are hoping for bargains in the next 4 years, they’re unlikely to find them. Despite a dip in September, prices for homes and condos are up $24k to $30k from one year ago. Are the Asian and Persian buyers pulling out of LA?  The Trump instability and trade issue might be a pause before even more money pours into the reviving American economy.  Make American Great Again, also creates excellent investment opportunities in California, paying out in $US.

  • jobs being repatriated back to the US from Mexico and China
  • employment already good and rising
  • the end of Obamacare?
  • the end of Dodd-Frank restrictions on lending
  • general Federal easing of real estate development expected
  • it will take some time for mortgage rates to rise
  • still isn’t enough housing to house LA’s growing population (recession)




It’s the Los Angeles housing forecast that is perhaps one of the most interesting forecasts for the US for the next few years. California’s housing developers are hard pressed to build homes to house the population. We can speculate that homes will rise in price for the next 4 years. It’s not easy to predict though when people are talking real estate bubbles, NAFTA cancellations, Brexit, skyrocketing prices, vacillating oil prices, reduced immigration, and presidential elections.  




malibusmall
Malibu Coastal. Photo courtesy of marisolmalibu.com

Overall, the Los Angeles forecast was very good for sellers with plenty of demand and with the average price of a home hitting $690,000 last summer. Affordability is dropping though and only 30% of LA county residents own a home. 

Given the nasty commutes Los Angeles workers are enduring, this housing crisis should be a top priority for the California state governor.

A few pundits are suggesting homeowners need to build granny flats in everyone’s back yard.  Political battles are forming over the effect of regulations on LA’s and California’s home construction. Who will win? Will they battle Trump head to head to stop new development?

The situation may become worse than what San Francisco, Vancouver, and Toronto have been through, and what Miami, New York, and Boston may be into now.


Save your Money on Auto Insurance Quotes in LA

Are you paying too much for car insurance in Los Angeles? Some zip codes and neighborhoods are subject to higher premiums. Are you okay with that? How about finding lower car insurance rates and making it a habit of shopping for auto insurance every year? 2017 is a good year to save:)

Here’s the Hottest Zip Codes in Los Angeles

LA Curbed’s list of hot zip codes: Los Angeles’s 90012 zip code is shaping up to be the 2nd fastest growing area in the nation at 8.8% growth, 2nd behind only Gilbert AZ. The 90012 zip code includes Chinatown, the Civic Center, Elysian Park, Victor Heights, parts of the Arts District and Bunker Hill, and most of Little Tokyo.

Here’s the LA Times hot zip code list:

Santa Monica 90402 – Average home price: $3,237,500

Hermosa Beach 9025 – Average home price: $1,693,500

Lincoln Heights/Montecito 90031 – Average home price $458,500 +14.6%

City Terrace  90063 – Average home price: $320,000 +18.5%

Marina Del Rey 90292 – Average home price: $2,157,500 +23%

Manhattan Beach 90266 – Average home price: $2,100,000 +10%

Compton – 90220 – Average home price: $285,000 +9.8%

Playa Del Rey 90293 – Average home price: $1,517,500 +26.5%

Toluca Lake Studio City  91602 – Average home price: $1,022,500

Read more on the best zip codes in the US for investors and homebuyers.

LA Home Prices Fully Recovered?

The Los Angeles home price graph below courtesy of Zillow shows how prices have almost returned to pre-recession values and are beginning to level off. To forecast prices and demand for the LA region, we’d have to examine the cause of the moderation and if it’s a fact. Here’s LA’s hottest zip codes.

 

Last year, home prices in LA rose 7.8%. That’s a fairly strong ascent to just snap out of, so we’re left wondering what really is the outlook is for the 2017 to 2020 period? With prices high and rising, it makes sense that the number of buyers will dwindle (preferring to rent) and a leveling off would occur. It seems however, this is more of a guess by forecasters not really backed up by a solid consideration of all the factors that will be in play during the next 4 years – defeated regulations, growing economy, and reduced immigration.

Homes for Sale in Los Angeles: Prices, Trends from Zillow

Try the Zillow Home Search Widget to learn more about LA Homes for Sale. Realtors, click here to hear more about the Zillow leads program:

 

Home Sales Volume Chart: Los Angeles

la-home-sales-firsttues

Is there a Housing Bubble Market?

harvardHere’s the thing. According to a Harvard real estate guru, bubbles don’t burst until demand dries up — an increase in unsold inventory.

Do you honestly think there will be no demand for coastal California property, especially Los Angeles county or Orange county?  As you’ll see from the data in this post below, there is huge demand for property. Supply is the problem.

Factors Affecting House prices and Availability in LA

  1. Housing Demand – High overall demand – “all cash bidding wars” in some cases
  2. Housing Supply – Throttled, supply is far from what’s needed
  3. Mortgage Rates – Continuing Low, especially in light of global economic slackening
  4. Down Payment and mortgage rules – Banks are withdrawing FHA loans however some are offering downpayments as low as 3%
  5. Regional Employment – Very low and remaining low
  6. Buyer Income – low and not rising much
  7. Home Prices – High and rising – out of reach for many buyers – many consider LA homes grossly over-priced
  8. Demographics – Millennials coming into family and home buying years and LA millennials have had the lowest rate of home buying (pent up demand)
  9. Number of Renters – increasing fast
  10. New Home Construction: slow (100k to 140k per year)
  11. Economic-Foreign Trade – Trump expected to reduce US deficit
  12. Election Year – Voters uncertain of what Trump will create
  13. Taxes on Sale of Home – Tax situation is great for sellers




Historical Data

This intriguing graphic courtesy of https://journal.firsttuesday.us/ reveals that home sales in Los Angeles is actually well down from historical levels. The likely reason for that is lower income buyers simply have even less income to buy and of course the high prices. Home ownership is lowest in California.

la-case-schiller-index

A complete recovery of around 110,000 annual home sales will likely occur in 2019-2020, as end user demand in Los Angeles County is buttressed by a Great Confluence of Baby Boomers (Boomers) and first-time buyers who are lured by further employment (needed to accommodate population growth of roughly 1% annually since the beginning of the Great Recession).

That’s a forecast growth of about 20,000 homes per year over current current 2016 levels.

Another interesting stat provided by firsttuesday is the very low rate of home ownership and how much it’s plummeted. It’s on the uprise now, and you’re left wondering whether Trump’s renewed emphasis of America First will encourage the growth of home ownership?

la-homeownership

LA Economic Forecast – Very Rosy

la-economic-forecastThe forecast for economic growth for the Los Angeles is optimistic at this point. Visit https://laedc.org/2015/09/30/new-2016-2020-economic-forecast-published-93015/ for the most recent info and their forecast up to 2020.

 

This Stat from CAR shows homes have been on a rollercoaster ride of sorts yet, 2016’s expected resale volume is still well down from 2011 and 2012’s highs. If incomes should rise in the LA area, it could have the effect of stimulating new housing construction and increase sales of homes. With the number renters skyrocketing, there’s a huge pool of potential buyers.

Home reSales Forecasts 2016f

la-housing-stats

This graphic reveals the exceptionally high cost of renting in Los Angeles compared with other major centers. The housing availability problem isn’t isolated to California or LA, it’s a US wide issue. The high housing costs in the coastal California areas however may prevent many skilled workers from migrating to LA to work. Startups for instance may be forced to leave San Francisco, Bay Area and LA because of the cost. San Diego County may be a better option for the short term.

la-rentals

This is a short term forecast from LA realtor James Campbell, who believes prices will drop?!

What can we conclude from the above data? That LA’s market for realtors is very promising, yet just as it is in San Francisco, Toronto and Vancouver, finding sellers and convincing them to sell will be a key challenge.  Digital marketing efforts could be vital to any realtor hoping to maximize demand and achieve highest price for their clients. Is this the right year to buy rental income property?  Find out which are the best investments in 2017 including investing in real estate.

Check out other posts providing realtor tips, prospecting strategies, social media strategy, and tactics used by top flight luxury realtors and even lead generation companies.




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Gord Collins —  I generate leads for realtors in Los Angeles, Phoenix, Denver, Seattle, Chicago, Boston, New York, Dallas, Houston, San Antonio, Austin, St Louis, Minneapolis, Green Bay, Charlotte, Tampa, Miami, Orlando, Toronto, Sausalito, Santa Clara, Mountainview, Fresno, NAPA, Tiburon, Oakland, Palo Alto, Anaheim, Beverly Hills,, San Diego, San Francisco, San Jose, Sacramento, Encinitas, Orange County, LA County, Riverside, Malibu, Santa Barbara, San Bernardino, Portland, Washington, Atlanta, Irvine, Nashville, Sunnyvale, Salt Lake City, Riverside, Rancho Cucamonga, Costa Mesa, Thousand Oaks, Simi Valley, Glendale, Oceanside, Long Beach, Huntington Beach, Carlsbad, Santa Clarita,  Henderson, Mesa, Temecula, Kirkland, Redmond, Kansas City, St Louis, Stockton, Scottsdale, Palm Springs, Chula Vista, Escondido, and Santa Monica, Venice Beach, and La Jolla. See additional housing market reports on New York NYC, San Diego CA, and San Francisco CA.

Is Your Website Generating Leads? Here’s a Website that Does That

Realtors Biggest Pain: A Website that Creates no Leads

reset
Time to Think about the Damage your website is Doing to your Realtor Brand Image and choose a new mls idx wordpress website to build leads and sales.

From Dallas to New York and San Francisco CA, Big Picture realtors hate technical details. You want easy to understand, tangible, measurable deliverables such as guaranteed leads yet the legit real estate marketing world has little to offer.

Success is complicated and not everything comes in neat packages. SEO and social media and websites are 3 key pillars of lead generation yet guarantees cant happen. You can guarantee results through smart strategic integration and not have pay $5 to $30 per click. Let go of your security blanket, cause I want to help you discover a key asset your many competitors arent aware of — a great real estate Website.

A new website and your real estate marketing consultant  are your workhorses and here’s why you need to get going on this.

Are the experts forecasting a housing boom in San Francisco, San Diego housing crash or Los Angeles real estate bust? California has enjoyed strong growth but the picture ahead or 2017 to 2020 may be very good.  The US may be headed to a super period of economic growth and the world will learn to follow.


Few realtors know why some real estate websites work or fail. Why does your site fail?

  • it offers no compelling value proposition
  • it makes visitors jump through hoops
  • it tries to force visitors to register when you’ve done nothing to earn that trust and privilege
  • you have no house or condo listings
  • your site is not Google friendly
  • your site has no ranking power
  • your site’s content creates no fans
  • your site’s content is boring and uncompelling and hard to read
  • it isn’t social media friendly and no one shares your stuff
  • your brand isn’t meaningful or desirable

Okay, so your site’s awful. That shouldn’t stop you, because you know that with a plan and persistence, success will happen. A fully loaded, IDX MLS functional, Google friendly website for realtors, with plenty of interesting, exciting and sharable content is one that will generate traffic, leads and sales and commissions.

What Makes a Great Realtor Website?

  1. it is Google friendly – with thousands of idx mls listing pages indexed
  2. it offers a great customer experience enabling searchers to find what they want fast
  3. it makes your realtor brand and unique value proposition clear and concise
  4. it offers interesting, personalized and truly relevant content that makes the visitors experience even better
  5. interesting real estate videos,
  6. the appearance is clean
  7. the content is laid out in a way that insipires curiosity and hope
  8. searchers feel they will successfully find what they’re looking for – confidence
  9. its content is expertly optimized by a real SEO expert
  10. its content scrolls, uses big text, is easy to navigate on a smartphone, may use video background with hi res photos

Here’s an expensive but very nicely custom-designed modern website that raises the bar in real estate web design. It’s for a new construction development that has great photography, layout, and the homepage functionality that reduces clicking for a simple scrolling experience. There’s no idx mls listings of course but the homepage experience is worth noting because the goal of every visitor is to feel good. If you were buying a new condo in an urban area, you might like these condos in Brooklyn, New York.

50north50

A great website like this is a sales weapon. It converts traffic because it adds value and makes the customer journey a great experience.

If your website is sad and lame looking and offers a bad visitor experience, you should take if offline. Realtors with awful websites do extensive brand image and reputation damage with a lame website. They associate you with what happens on their website. If you have no unique, compelling content, or content that’s copied from some source, they will never see you as a leading agent, but rather someone who might be desperate for  a sale.

“It’s better not to be online than let your clients and prospects experience a crappy website”

The Fully Loaded, Hosted, MLS IDX Website that Google Loves

seattletemplate
Seattle Real Estate Web Sites

Why do I offer the websites I do? Because they’re powerful. They make searching a breeze and Google loves these sites. Getting thousands and thousands of pages indexed in Google and interlinked with new, original and engaging content that makes visitors feel great. They can feel they’re on the right path to find what they’re looking for. There’s lots of value for Facebook users, and exciting news for Twitter people.

Since visitors enjoy their great search experience, they will gladly submit their contact info and return later to search further.

An IDX website for realtors built in WordPress makes it easy for you to manage. You won’t need an expense web designer to update and edit. Many of you already blog with WordPress and you’re getting the same nice interface to work with.

What Does IDX Mean?

IDX for real estate agents is the Internet data exchange system where REALTORS® allow each other to show MLS property listings on their websites.  It’s a system of sharing, via a datafeed from our MLS association or others, so that all the listings on your MLS (e.g., Toronto MLS Listings) can be displayed on your website.

It is a powerful advantage that most realtors know about but yet still don’t leverage very well. This is where expertise in SEO and content optimization comes in very handy. Some IDX systems don’t work well, yet the realtors who use them are fooled into believing it is working. If you’re not getting leads, it is likely not working. However, you do need an expert SEO real estate consultant to optimize it.

WordPress sites and all their components update easily so you don’t have be concerned about all this new disruptive technology that’s racing in. You’ll be current with the new features and capabilities. And you could also have $600+ of premium plugins and other valuable bonuses.

When we do a search for Los Angeles homes for sale, one of the top ranking sites is theagencyre.com.  They have almost 9,000 pages indexed in Google. Not great, but not bad either. Theagencyre.com website is easy to understand and doesn’t oppress you with their “stuff” upon entry to their Los Angeles home listings page. You can get right to your search here and if you like what you see, then you’re ready to hear theagencyre’s sales pitch and enjoy all their stuff. This is just one reason why they’re the top Realtors in Los Angeles

theagencyre

theagencyre-homes-for-sale

I spoke about this firm and their director Santiago Arana previously. A great website is all part of the package of the Millionaire real estate agent.

If you’re a Toronto broker or Los Angeles broker or Vancouver broker, get prepared to hand over web marketing to me. Using the best mls ids website for real estate agents possible, combined with expert SEO, and compelling, sharable content for social media, we’re going to make you into a millionaire. If Merrily Hackett and Santiago Arana can start from scratch and do it, why not you?

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Gord Collins — Real Estate SEO Consultant for realtors in Los Angeles, San Francisco, Santa Clara, Sacramento, San Jose, Long Beach, Anaheim, Fresno, Oakland, Bakersfield, Santa Ana, Oceanside, Carlsbad, Palm Springs, Beverly Hills, Chula Vista, Irvine, and many more cities in California. Call now and let’s get started!

Luxury Home Sales in Canada Continue Record Pace

Toronto and Vancouver Sizzling Hot Realty Markets

Although the US markets such as San Francisco, Los Angeles, Charlotte, and Miami are glowing brighter these days, Toronto and Vancouver are actually the hottest markets in the world right now. The Forecast for housing sales and combined with higher condo and home prices means realtors can raise their earnings considerably.

internationalhomepricesBoth Toronto and Vancouver are keeping pace for new sales records this year. And it’s a great time to be selling a $1Million+ home in these 2 cities. Excellent for those who have positioned themselves to sell these properties. Take a look at the sales Jason Soprovich is enjoying in Vancouver.

US and foreign investors are keeping their eye on the Canadian market as the Canadian loonie stays down at 75 cents US. There’s still time to get onboard the rising tide.

The globe and mail reports that in the first two months of the year sales of Vancouver homes valued at more than $1-million increased 23 % year over year. Toronto luxury homes were up an unbelievable 63% year over year. Overall in the GTA, home prices rose to about $720,000 on average.

Depicted at right are the world rankings of property prices around the world. Knight Frank’s most recent  world wealth report   shows “prime” property prices in Canada are rising at a rate that’s 4 to 14 times faster than the average of the rest of the world.

“Luxury home sales in Toronto and Vancouver will continue to defy gravity this spring. Both markets have the potential for significant gains and we expect heightened demand and insufficient inventory to drive price escalation and sellers’ market conditions.” — from a statement by  Brad Henderson, president and CEO of Sotheby’s International Realty Canada, reported by the Globe and Mail.

Toronto Soars

TREB reported 7,621 home sales in February, up from 6,294 — a rise of 21%.  That’s despite the fact supply is actually very limited. More homes are sneaking above the $1 million mark thus giving them the tag of luxury homes, when in fact, some of them aren’t really luxury homes at all. Is it time to refer to luxury homes as those above $4 Million? The forecast for 2017 sales and new construction are positive. It’s been record growth recently.

Vancouver Rockets

Sales of detached homes rose by 37% year over year and the average price of a detached home in Vancouver has also risen 37% to $1.3 million.  Most luxury home sales in Vancouver are from 2 to 5 Million dollars. New listings in Greater Vancouver increased 7% so clearly homeowners are starting to get the itch to sell.  Ironically, the total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 7,299, a 38.7% drop compared to February 2015.

vancouver 5 year trend

It’s common knowledge that few Vancouverites can afford to buy a home. We have to ask who buyers are now in both Vancouver and Toronto?  Clearly, Millennials can only afford lower end condos in most areas of greater Toronto and Vancouver. The desperation of the market has increased the use of shadow flipping, which the BC premier says she intends to clamp down on. However, she also stated she will not do anything to affect homeowner’s equity– clearly signalling a “hands off” attitude that will appeal to luxury home and condo investors around the world.

vancouverluxury

As the white line above shows, Vancouver condos still haven’t taken off in price. Maybe this will be your investment opportunity? (Call me if you need a tenant — me. Don’t let that luxury condo sit empty when I could be minding it for you:)

With migration into Vancouver on the rise, the government will have to act fast to promote new home development. With low interest rates, investors and developers are eager to get into these fantastic market opportunites.

Luxury Home Realtors Having a Great Time

Vancouver area luxury real estate agents are enjoying a rare period of exceptional sales and income.  It could be another record year in 2016 for Sutton Group West Coast Realty who are clearly enjoying the fruits of being top dog in the current residential and commercial property boom.

Luxury home realtors may have to shift their marketing to the International investor and buying audience of Saudis, Chinese, Hong Kong, Australian, US and European buyers whose currency exchange rates given them a decided boost in purchasing power. Asian investors are buying globally, but nowhere do they feel more comfortable and welcomed as in Vancouver.

Additional Luxury Real Estate posts:

Who’s buying properties in Vancouver in Toronto?

What makes a better luxury real estate agent?

Are the most beautiful condos in Vancouver lifting the market even more?

What do home sellers really want from a realtor?

What’s up in Realtor marketing today?

 

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Condo Market Heats up in Toronto, Vancouver and San Diego

Realtors Looking at Strong Market for Condos

The market for condos in North America’s hottest cities is heating up as housing becomes scarce.  The low Canadian dollar is making all Vancouver and Toronto properties an attractive investment but condos are the hidden gem for investors. The market in San Diego too is also being driven by a lack of housing stock.

3 Cities Primed for More Price Growth

Vancouver is loaded with condos and Toronto has seen a huge growth in new condo developments in the last 5 years. San Diego’s condo market is poised for astonishing growth.

As this graphic highlights, the great recession barely affected rocketing prices in Vancouver since 2002. There is no more land in Vancouver which means the sky is the limit in Canada’s top city.

vancouverhousing

Explosive growth in the Canadian market is fueled by Chinese, Middle Eastern and US buyers.  Vancouver is the main target of wealthy Chinese buyers. The strong Yuan and weak Loonie means Chinese millionaires are finding plenty of bargains to move into or to use as investments.  Many of the units are sitting vacant but don’t expect to see them on AirBnb.

Toronto Sales Volume Rising Fast

Toronto’s condo sales volume grew 10% in August in the city and 23% in the region just outside Toronto.  No housing bubble is forecast for Toronto.

BILD CEO Bryan Tuckey says many potential first-time buyers are being priced out of the market. He says there’s a limited supply of new houses because of a lack of development-ready, serviced land across the region, which means “homes are being purchased faster than they can be brought to market.”

Foreign Buyers Helping to Drive up Prices in San Diego

San Diego’s real estate revival is in progress. Realtors are just getting positioned for the coming boom.  The graphic below from Jorge Castelon of Harcourts Pacific Realty in San Diego reveals the upward trend.

san-diego-condos

That’s an eye opening 50% rise in 5 years and the real estate market in San Diego still hasn’t taken off yet.

This graphic from August shows a shortage of units is lifting prices fast.

sandiegosalestrendsaugust

The US is the only country expected to excel economically, which means the US dollar will only go up. San Diego properties might be as good an investment as those in Toronto and Vancouver. As the world’s baby boomers begin looking for ideal locations to live the last decades of their lives, San Diego will be high on the list.

San Diego has 64 huge condo buildings and San Diego county has many more. The San Diego market is still marked by a high underwater rate so there’s plenty of hidden opportunity here.

The prices are outpacing wage growth, a trend that analysts say is only going to continue so long as the region sees its supply of housing remain tight. Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said home prices are appreciating faster than he expected — from the San Diego Tribue.

With mortgage rates remaining at such low levels, the condo market will be especially attractive.  The average homeowner in San Diego spends $10,647 per year on their mortgage. And the average renter in the city will pay a whopping 44% of their income on their rent. Either for rental income or as a capital investment, condos and homes in San Diego look awfully good.

Of course, we’re talking about San Diego. The luxury market is even more attractive to Chinese buyers who typically only look for $1 million+ properties.

$11.78 billion: The dollar amount in home sales in San Diego County in the first half of 2015, up 13.2 percent from $10.4 billion last year —  CoreLogic.

sandiegocondoview
Photo Courtesy of Dream Homes Magazine

Prospective buyers around the world will see condos for sale like this one at right.

If this market potential doesn’t excite you, I don’t know what will. If you’re a San Diego, Vancouver or Toronto realtor with condo stock for sale, it might be the perfect time to do digital marketing right.

Contact me at gordcoll5@rogers.com to get started with a better digital marketing program designed for realtors that includes SEO, content strategy and social media engagement. Visit my linkedin page too linkedin.com/in/gordcollins.

 

 

 

 

 

 

 

 

 

Note: the above content is not presented as a proposition for sales in real estate, nor advice about any realty investment. It is a commentary on economic and real estate conditions. All investors face uncertainty and economic factors beyond control and are advised to consult with a professional realtor before buying or selling.

How you can Power up Your Lead/Sales Funnel

Tip to Help you Convert Visitors to Customers

Improving the sales funnel is most digital marketers top priority today. And for two good reasons:  1) their traffic is much lower than previous years, and 2) doubling their conversion rate could triple profits.

no_sales
Picture courtesy of Wjunction

Years ago I had client websites rolling in traffic from Google and other search engines, yet they couldn’t convert enough of them to actual paying customers (real estate, loans, hotels, apparel).  It was too much for me as an SEO guy at the time, to solve. The problem was not keyword targeting or traffic volume.

The problems were typically a weak value proposition and selling proposition, poor conversion process, limitations on the kind and quality of content, insufficient investment in content development, insufficient personal involvement in the content by the client, no social presence, and poor web design.

A Compelling Clear Unique Value Proposition they Love — A Powerful Brand

It’s well known now that by the time someone visits your website, they’ve pretty well made up their mind about a purchase. They’ve entered your sales funnel at a later phase, yet they still don’t call you or purchase. What are they looking for anyway?

The Leaky Sales Funnel:  Since the typical conversion rate is up to 2%, we know about 98 out of 100 of your visitors will be leaving. The science of lead funnels then is to sytematically discover target audience’s emotional drives and ensure they get what they really want.

What customers want is a complex matter, but those 98 visitors are your birds in hand.

Building Emotional Impulse

What your visitors want most is emotional justification to talk to you or become your customer and commit to an action.  People buy on emotion and justify with information.

As I mentioned in posts on growth acceleration, after you present that powerful UVP, you need a content strategy that builds emotion. And at key points while they’re on your site(s), you have ramp up that emotion fast. It’s in that frenzied moment of emotion that they pull the buying trigger.

It takes excellent content strategy to overcome buyers sales resistance.

If this is all too deep, think for a minute about the last time your tried to talk someone into something. You likely tried to appeal to their wants and desires, showed the benefits of doing what you wanted them to do, and offered them an incentive. Maybe you were persistent but that didn’t work. Then you offered something special and still no response.

It’s not until you really get to know your customer, empathize with them, and present your offer in terms of their deepest wants and desires that you’ll get anywhere. It’s personal and you need to get involved.

What’s Wrong with Your Lead Funnel?

Increasingly, web marketing companies are focusing on the content pathway, and timely messages as visitors are onsite. They’ve learned to pave the path to purchase. The visitor is guided and attempts are made to strike an emotion with them. So what’s wrong here?

  • your product/service doesn’t beat a competitor’s on a key point
  • your competitor has bad mouthed and spread lies
  • customer has been brainwashed against your type of product
  • your products/brand doesn’t offer the best value
  • your product/service doesn’t solve the customer’s pain
  • your site content and branding has confused them
  • your site’s content isn’t good enough
  • your content strategy doesn’t disrupt their sales resistance
  • your content strategy doesn’t create the right context for them to justify a purchase
  • landing pages are messy and pushy
  • your brand doesn’t look customer-focused
  • your keywords and copy appear to be misleading
  • your content hasn’t addressed their post-purchase anxieties
  • your site lacks credibility
  • your content paths aren’t specific enough
  • your calls to action aren’t good enough
  • your graphics and visuals are irrelevant
  • your visitor is currently bored/distracted
  • you don’t have an incentive to help give that extra push to make the sale

A worthy content strategy that accelerates them through the sales funnel is one that presents your unique value proposition clearly and convincingly, keeps them on a clear pathway, controls or alters their mental/emotional context and reduce their sales resistance.

A great, credible and persuasive unique value proposition is very powerful, but the missing ingredient is knowing the visitor’s emotional blocks. When you discover that, you’ll have a tsunami of success.

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