Austin On List Of Highest Rental Rate Increase In Nation

HouseOnCoinsAustin has topped lots of lists the past twelve months.  Lists we Austinites can be proud of, like Fastest Growing Metro in the Nation; Nation’s Best Capital City; 2nd Hottest Real Estate Market in the Nation; 4th Fastest Growing Job Market in the Nation;  even #3 City to Live & Work In As A Filmmaker. And most recently, Forbes gave our growing city its number one billing as the Next Boom Town in the Nation.

But there’s a newly-published report that places Austin on a list that, depending on your role in our housing market, is not necessarily an attribute to our growing city. Real estate investment management firm HomeUnion has identified the top 10 metros in the country that offer the highest investment growth for rental home investments. And Austin has made this list.

Austin’s #8 ranking on this list is great news for real estate investors who took advantage of past buyer’s markets. But this ranking also scares the heck out of renters who are unable to purchase a home in the city’s low inventory/record home prices real estate environment.

A healthy economy, steady job growth, and fast-growing population factor into the inclusion of Austin in the Top 10 list.  These factors all contribute to the 5% rental increase that’s projected in 2016, meaning that renters of single-family homes can expect to be paying an average of $1787 a month by the end of 2016.

This is great news for real estate investors, as Austin’s lack of affordable single-family homes inventory has driven many away from purchasing a home to renting, creating an even higher demand for rentals in our city.  Yet to the many forced to rent due to Austin’s housing affordability crisis and down-payment/rental cycle, this news is anything but welcoming.

But it could be worse. Austin’s 5% rental increase pales in comparison to San Jose’s 7.3% forecasted growth, Orlando’s 6.1% increase, and Seattle’s 5.9% increase. And Austin’s strong economy does help bolster the impact of this expected increase.

Still.

Dallas-Fort Worth Leads Country In Home Price Gains

DallasWhen we hear that 219 new companies relocated to the Dallas-Fort Worth area in the past seven years (Dallas Morning News), we know that something significant is going on in our economy and in our market. And it’s not just branches or off-site locations that are springing up throughout the North Texas corridor; many of these relocated companies are pulling up all their roots and deciding to call DFW their permanent home.

CoreLogic hears this news, as well.  According to this nationally recognized provider of real estate insights and analytics, North Texas leads the country in home price gains. To break the numbers down more succinctly, home prices in the DFW area rose 11% in 2015, in comparison with home prices in 2014. This is twice the amount of the average home price gains in the same area over a 10-year period.

And while home prices are increasing, the average number of days on the market for this area is decreasing: homes stayed on the market in 2014 for an average of 63 days, compared to 44 days in 2015.

Current economic expansion has lasted well over six-and-one-half years (National Bureau of Economic Research), and is expected to continue throughout the area in 2016. Heralding DFW’s growth and development is Toyota through its massive exodus from California and relocation of corporate headquarters to the Plano area.  State Farm’s new Richardson campus is built to house 8,000 new employees, but in a move indicative of the strong commercial real estate market, the company will be selling its four-tower regional campus to an international investor, leasing it back for a long-term time period.

The area’s economic growth isn’t just limited to national attention; DFW has also become a beacon for foreign investment funds. As international markets become more challenging, DFW offers stable market conditions and unprecedented opportunity for long-term growth in both commercial and residential markets.

All of this to say…keep growing and talking, Dallas-Fort Worth. You’re being heard the world over.

 

Tenura Home Center is part of the Tenura family of real estate concierge companies, which include Tenura University, Reliant Title Agency, Private Label Realty, AmeriPro Home Loans, and AmeriFirst Insurance Agency. Tenura companies are located in Austin, Dallas-Fort Worth, Denver, Henderson/Las Vegas, and Scottsdale.

 

Denver – Hottest Of The Hot

DenverSkylineGreat companies go great places. Which is why over the years we’ve expanded our real estate brokerage, mortgage bank, Title Company, and insurance company out of our Austin offices and into some of the other most dynamic real estate markets in the country.

Like Denver.  We’ve always been huge Denver fans, Broncos notwithstanding. We’ve watched the city garner accolades from real estate industry experts, millennials, and housing demographic groups. So it’s no surprise at all to learn that Zillow just placed Denver in the number one spot for its “Top 10 Hottest Housing Market For 2016” list.

What makes Denver so special? Is it the trendy tech companies relocating to the area? Is it the new energy sparked by an increasing influx of Millennials? (Denver was recently voted #1 Place to Live as a Millennial by TrendSource Magazine.) Is it the convenience to world-renowned ski slopes and other outdoor recreational areas?

Yes, yes, and yes.

But Denver is more than just special. Denver is hot. Hotter than hot.  Officially, it’s the Hottest of the Hot.

Zillow has developed its own set of metrics for determining a real estate market’s viability and draw. For the purposes of this ranking, the top three things needed for a market to be named the Hottest Real Estate Market in 2016 are a low unemployment rate, strong income growth, and a projected appreciation of home values. Denver doesn’t disappoint on any of the above.

We would be disappointed if it did.

 

 

 

How Millennials Will Affect Austin-Round Rock Home Sales In 2016

AustinMapMillennials. We’ve given this group a lot of attention through our blogs, training courses, Facebook posts, and LinkedIN links. More so than any other topic. Why? Because Millennials constitute the largest share of the American workforce (Pew Research Center) and wield $2.45 trillion in buying power (Youbrand Report). And for a consumer-driven industry like real estate, these are huge reasons to learn all we can about this group.

Just to hammer home the point that we need to be actively pursuing the millennial population, the Realtor.com 2016 Housing Forecast reported that the Austin-Round Rock area will be the fifth most popular city for Millennial 25-34 years old who are seeking to buy a home. That’s fifth in the nation, folks. Fifth.

Exactly how does this millennial influx affect the local market? According to the forecast, local single-family home sales will increase by 10% as compared to sales in 2015. Median sales prices for these homes will increase by 5%. This is all due, in part, to the population growth attributed to Millennials moving into the Austin-Round Rock area.

Not surprisingly, the Millennial move yields an increase in our area’s labor force and number of households. A 12% increase when compared to 2012, according to the report. There are other reason, of course, for the growth to our local market, which include a stronger economy and a 36% decrease of local unemployment.

As brokers and agents know, all of these factors combined create a highly competitive real estate market as buyers compete within a limited inventory of single-family housing.  These market conditions create new barriers in reaching this emerging group of home buyers, making traditional sales and marketing techniques obsolete. Through Tenura University, we offer curriculum and courses designed to help you stay current with the millennial movement. For more information, click here to visit our Facebook page.

 

 

 

Class Of 2016 Will Enter Strongest Job Market Yet

CollegeGradAn increase in hires of fresh college grads indicates an economy on the rebound from a recession. Why would we make such a bold pronouncement? Take a look at some the latest data and trends from recent surveys and reports.

The National Association of Colleges and Employers, which tracks college hiring, recently surveyed 201 employers across the nation.  Result? 11% more newly-graduated college students will be hired for U.S. jobs this year.

Last summer’s grads entered one of the strongest hiring markets in years.  But the NACE numbers indicate that the 2016 class could enter an even stronger hiring arena.  Even better, average starting salaries are up 5.2% from 2014, with salaries for the Class of 2015 going to $50,651.

Michigan State University also conducted its own survey of over 4,700 employers, which showed a projection of over 15% increase of new graduate hiring. (The projected hiring increase covers degrees across the board, including bachelors, masters, doctorate, and other professional degrees.)

These results segue into Georgetown University’s Center on Education and the Workforce recent report which shows that high-wage occupations lead the way in U.S. job growth since the recession. And as expected, the majority of these high-wage occupations require a bachelor’s degree.

Employers are optimistic of the overall college-hiring market. NACE numbers showed that 42% of survey respondents classified the job market for 2016 grads as “very good” or “excellent.” NACE says that only 18% of respondents described the job marker that way last year.

The data from these reports and surveys indicate that this year’s graduates may have the strongest first decade of all Millennials who have entered the workplace. What this means for our nation’s economy remains to be seen, but we can surmise that stronger entries into the job market will affect all markets and industries in a positive way.  Including ours. Let’s be ready.

 

Why This Could Be The Record Year For Texas Home Sales

SOLDRemember 2007? It was the strongest year for home sales that Texas had seen in a long, long time. It was an exciting time for sellers, mortgage companies, real estate appraisers, home insurance companies, home warranty companies…and especially real estate agents.

But the high fives, fist bumps, and pound-its soon gave way to the thumbs down economy ushered in by 2008. Dodd-Frank, the CFPB, and TILA became the monikers and acronyms of the day as the market struggled to shore up the shaky foundation under the real estate bubble that stretched from sea-to-shining-sea.

So once the market in Texas began to show signs of stability and strength, the real estate industry let out a collective sigh of relief.  Followed quickly by a slight inhalation of that same sigh, held collectively under their breath.  Until now.  (It’s safe to let it all out now….)

Recent figures released by the Texas Quarterly Housing Report indicated that 2015 Texas home sales will surpass those of 2007. In Central Texas 9,347 homes sold, with the median sales price being $260,000.  This is an 8.7 percent increase on homes sold this time last year, with a 7.2 percent jump of the median sales price for the same quarter last year.

Statewide, there was a 7.7 percent increase of homes sold, compared with this time last year.  Median home prices across the state saw a 7.7 percent year-over-year increase, at $199,900.

That’s a lot of increase and a lot of jump.

Given Austin’s continued job and economic growth, this should come as no surprise. After all, we’re marked as the next Silicon Valley, voted the number one place for Millennials to relocate to, and named one of the country’s top markets for start-up companies. Our economy is strong. So strong that Austin – along with other Texas metros – economically outperforms the rest of the country…and maybe even the world.  So record home sales is hardly a surprise.

Which is why we will keep selling homes until someone tells us not to….

 

 

 

Top 3 Ways To Engage Millennials With Your Real Estate Brand

MarketingToMillennialsThey’re a tough bunch, those Millennials. Most are in their 20’s and 30’s and unlike any generation in that age bracket, they hold a huge chunk of this country’s consumer buying power in their hands. Like over $1 TRILLION DOLLARS worth of chunk. This group of buyers is nothing to sneeze at. If anything, we should seriously be slamming a handkerchief over our mouths and figuring out how to best suppress the sneeze before we lose them, and before it’s too late to capture their loyalty and attention.

How can we best suppress the sneeze? By encouraging Millennials – and their buying power – to engage with our brands. (And yes, even real estate brokerages and agents can brand their services.) While there are many ideas of what it takes to engage the Millennials, we’ve narrowed it down to what we think are the top three.

(By the way, these strategies also apply to those consumers and clients who may not fit into this age bracket, but nevertheless act and think like Millennials. I personally know someone who is a Millennial in a Boomer body.)

Here goes.

Keep the content bite-sized.

Digital media is not designed to be leisurely read like print media, nor is it usually read in the Throne Room. For Millennials especially, content must be something they can snack on, in between or instead of meat-filled full-length articles. Keep content light, but by all means, keep it real.

And because attention spans are shorter than those of the Boomer generation and even Generation X, video clips are going to be the best way to captivate and hold the attention of the Millennial. The average length of a Snap Chat video is 10 seconds; Instagram 15 seconds. Which means, keep it pertinent, keep it entertaining, but most of all, keep it short.

Create a personal connection.

Two-way communication is also important in capturing the loyalty and engagement of Millennials. Things like surveys, sign up to receive free offers, join our mailing list, etc. simply add clutter to the over-crowded, over-stimulated mind of the Millennial. They are looking for something in return. A two-way street of connection.

In real estate, this translates into building a personal relationship of trust. Social media is the foundation to this reciprocal relationship. Blogs help consumers and clients get a feel for your personal tastes, personality, and perspective on current fads, issues, and real estate trends.

Facebook pages, Twitter accounts, Instagram, and even LinkedIn help you connect with Millennials in a way they can relate to and are used to interacting. As mentioned above, this is a great place to insert short, pertinent videos. And this is a great place to take the time to create a YouTube account to house these videos you’re making.

And though this may sound counterintuitive to most real estate business models, be everything to everybody. This is what Millennials expect. Be the go-to person for insight and information regarding school districts, neighborhood amenities, best way to score tickets for ACL, happening restaurants, etc. Some of this information can be shared through social media, but sometimes using old-fashioned ways of communication can be effective when used alongside social media.

Become an authentic authority.

More so than other generations, Millennials expect and need authenticity. Creating open and honest lines of communication shows Millennials that your brand is authentic and different for the rest. In real estate, this translates into availability. The good news is that availability doesn’t require unlimited amounts of time like it once did. Millennials are satisfied with quick answers or comments via text, Facebook messenger, or email. Just be sure to respond to questions or concerns in a timely manner.

Making sure your brand stays consistent in its message is another way to create authenticity. This is sometimes a little bit tricky. It’s easy to get confused when weighing brand consistency against the strategy of “Be everything to everybody” that’s used when creating brand personal connection. The point is, you want to be perceived as the expert in your field, the most consistent in your field, and the most relatable in your field.

The best way to encompass all of the above is to know and understand the mindset of the Millennial. After all, they are going to be consumers and homebuyers for a long, long time.

To learn more about branding, social media strategies, and marketing to Millennials, Like and Subscribe to our Facebook page at www.facebook.com/tenurauniversity.