KTS Message

Dear Friends,

It's the start of a New Year. This is a time when we can wipe the slate clean, creating room for a fresh and positive start. It provides us an opportunity to fine tune our marketing plans and strengthen our relationships. 

Thank you for providing us with the opportunity to continue to serve you in the coming year.  I wish you a healthy and prosperous 2006.

Sincerely,

Jason Kane

--------------------------------------------------------------------

Last Months Trivia:

What is the most-visited Historic Home in the United States?

Answer: Graceland

Back to top

Housing Market to "Normalize" for 2006

In its forecast for 2006, the National Association of Realtors trade group states that the "key word for the housing market is balance, 
with a return to a more normal rate of price growth."

David Lereah, NAR's chief economist, said in a statement that "cooling sales are necessary for the long-term health of this vital sector," and a "modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong."

After setting a fifth consecutive annual record, projected at 7.1 million units for 2005, existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year, which would be the second highest on record, the association reported.

New-home sales, which should be a record 1.29 million for 2005, are expected to decline 6 percent to 1.21 million in 2006 - that also would be the second best year in history. The association expects total housing starts for 2005 to reach 2.07 million units - the highest since setting a record 1972 - with a 6.6 percent slowing to 1.94 million this year.

"A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year," Lereah said.

The 30-year fixed-rate mortgage is likely to trend up gradually to 6.7 percent during the second half of the year. "This will preserve generally favorable affordability conditions and keep the housing market at a more sustainable sales pace," he stated.

NAR President Thomas M. Stevens, senior vice president of NRT Inc., said in a statement that price appreciation should be at more normal levels across most of the country this year. "Buyers are no longer competing for a tight supply. That means home prices generally will rise much closer to long-term norms, which is the overall rate of inflation plus one or two percentage points. Lower price appreciation will keep the door open to first-time buyers while preserving the investment advantages of home ownership for sellers.

The national median existing-home price for all housing types, projected to jump 12.9 percent to $209,100 for 2005, is forecast to rise 5.1 percent to $219,700 this year. The median new-home price, which should be up 4.6 percent to $231,300 for 2005, is expected to increase 6 percent this year to $245,200.

Inflation as measured by the Consumer Price Index is projected to rise 3.4 percent for 2005 and 3 percent in 2006. Inflation-adjusted disposable personal income is forecast to increase 1.3 percent for 2005 and 4.6 percent this year, the association reported.

Growth in the U.S. gross domestic product is likely to be 3.6 percent for 2005, with GDP seen at 4 percent this year. The unemployment rate is expected to drop to 4.8 percent by the end of the year.

Source: The National Association of Realtors

Back to top

Foreclosures Peak in December

According to Foreclosure.com: The nationwide inventory of foreclosed U.S. residential properties jumped 12.7% in December, the biggest surge since March 2005. The inventory totaled 91,905 properties. Meanwhile, there were 24,124 new foreclosed residential properties listed in December, an increase of 7.7%, the company reported. 

"The relative stability of U.S. foreclosure inventory ended in December," said Brad Geisen, president and chief executive officer of Foreclosure.com. "With lending institutions closing their books at the end of the year, it is somewhat common for the foreclosure inventory to rise. It is premature to predict that December's inventory indicates a foreclosure crisis in the U.S. However, this rise in inventory, which is higher than in recent years, should be closely monitored as 2006 begins."

Back to top

10 Ways to "Know" Realtors

Here's a great article from consultant Sandy Dixon:

Today it is vital for salespeople to go beyond product selling and to embrace relationship selling skills as an integral part of their business development and maintenance plan. However, as simple and successful as this “be yourself” selling approach is, it is difficult to facilitate if there aren’t opportunities to get face to face with your Realtor prospects.

I am frequently asked by loan officers how to overcome the barrier of closed office policies and indifference towards mortgage lenders. Formidable as this task may sometimes seem, there are several, creative ways to develop relationships with both Realtors and other potential clients.

Here are my Top Ten Ways to get “front and center” with Realtors and to grow your business:

1. Pay attention to patterns: What organizations do they belong to? What committees are they on? What charities do they promote and support? Make a commitment to actively and ardently get involved.
   
2. Image and Market Presence: Heighten the awareness of yourself and your company by making presentations, writing articles or developing simple home buying and selling tip sheets that Realtors can include in their marketing packages (or sponsor an interesting guest speaker or ghost writer do it for you).
   
3. Learn to Communicate: Share information on topics that resonate with Realtors as a whole, as well as the individual agent. Differentiate yourself by choosing topics that will help them list and sell more homes, be more efficient with their time and market more creatively. Watch for pertinent articles in the paper and subscribe to industry e-zines on the internet to find topics.
   
4. Serve Your Community: Many Realtors belong to Rotary, Kiwanis, and Chamber of Commerce and sponsor various charity endeavors. Find out which ones and start participating…this benefits business, community and the soul!
   
5. Get to know their industry: Subscribe to internet or hard copy industry publications in order to better understand their business and how best to add value.
   
6. “E-valuate” them and their company: Most Realtors and almost all real estate companies have web sites. Check them out…read about their philosophy and discover important data regarding their credentials, awards, personal interests, etc. It gives you something to talk to them about. A company marketing package is also a great way to discover more details.
   
7. Brand yourself: Project a positive feeling and always look like good news to your clients. Your attitude and appearance will be the first impression they get. Consider an “authentic” photo on your business card that shows you as approachable and friendly, not starchy and staged.
   
8. Read and reap: Read the Sunday newspaper and scour the Real Estate section for info on listings, sales, open houses, awards, interviews.
   
9. Create a “signature style”: Use a signature file at the end of your email messages to let clients know what you do and how you can help them—state the benefits of working with you. Most email software programs allow you to add two or three lines under your signature for contact information, URL address, motto, tag line, etc. Post your web site address everywhere—in brochures, on business cards and stationary, newsletters, promotional items.
   
10. Media exposure: Submit press releases or short articles to the newspaper whenever you or your company sponsor a charitable endeavor or receives an award.

Cultivating dedicated clients and becoming competitor-proof comes from delivering more than they expect or need—delivering value, not rate sheets and donuts. It’s critical that you become a business friend and ally, even when you don’t always get the loan. To be the kind of salesperson they rave about and to earn their loyalty, you must become a problem solver, not a sales persuader. Remember it’s about them; it’s not about you!

Back to top