As a shifting market and technology landscape work to shape the real estate industry of today, Keller Williams is keenly focused on building the industry of tomorrow.
This was the crux of Keller Williams Realty Co-Founder Gary Keller’sVision Speech last month at Family Reunion – Keller Williams’ largest training event and tech user conference.
After the release of the company’sreal estate-specific AI (Kelle),smart cloud (Keller Cloud) andinnovation platform (KWCommand), the world’s largest real estate franchise is proving that they are well on their way. After two years of work and collaboration with over 27,000 of its associates, it’s introduced the first real estate-specific platform –KWCommand – which has been built on a powerful innovation engine.
Gary also gave his input on last year’s U.S. real estate stats and where he sees the market is headed. Median home prices rose 5% in 2018 to $259,100. He stated that the original trend line that shows expected median home price to be at $305,000 for this year, should really be adjusted to correct for the downtown that began in 2008. This adjustment would show that there is a 12% difference between where we are today compared to where we thought we would be had the downturn not occured. He further stated that it is unreasonable to expect home prices to jump up that high right away. The market would not be able to sustain such a leap.
It is still very much a seller’s market in most of the country. At 6 months supply of inventory, a market is considered balanced. This means that in 6 months, if no other listings came on the market, the entire supply would be sold. The U.S. is currently averaging about 4 months supply of inventory. The low inventory of homes is maintaining the upward movement of sales prices.
Low inventory and rising mortgage rates make for a difficult time for buyers. It actually causes a quirky market in that some homeowners are opting not to put their homes on the market for two reasons. They too don’t have enough choices in homes to move to after they sell, and they probably have a much better fixed mortgage rate on their current home than what they would get today. Financially, it just makes sense to them to stay put. Although, keep in mind that mortgage rates are still relatively low, historically. Just back in the year 2000 they were on average 8%.