A few weeks ago I attended the Keller Williams 2010 Family Reunion.
With over 8000 agents and real estate market center staff in attendance, Gary Keller spent the first morning giving his Vision Speech.
One of the reasons I have been so happy with my decision to join Keller Williams is the fabulous education that is available for agents whether they are new to the industry or seasoned professionals. As much as I would like to tell you that I spend my days reading every news story about the real estate market and what is happening in the economy, there just aren’t enough hours for me to do that and to take care of my clients.
So, I focus my research energy on studying the St. Louis housing market, and rely on my brokerage to keep me up to date on economic forces affecting the national housing market.
Click on the picture below to see the portion of the Gary Keller’s Vision Speech presentation which outlined the changes in economic trends and their impact on the housing market.
Highlights:
Housing Market:
- The number of home sales started declining in 2005. The increase in home sales in 2009 is a first step in the housing recovery.
- While home sales increased in 2009, the median sale price declined by 12%.
- Annual appreciation rates of homes from 1990-2000 was between 3-5% per year. From 2001-2005, annual appreciation skyrocketed to 7-12% annually. None of us should be surprised that prices have dropped in the last few years to counterbalance the excessive grow of the early 2000s.
- Inventory is finally starting to head back towards a balanced market (a 6 month supply is considered a balanced housing market).
- Mortgage rates are dramatically lower today than they have been over the last 20 years. They are even lower than during the housing boom years of 2003-2005 when low mortgage rates helped fuel home sales.
- Homes today are more affordable than they have been in 40 years. Over the last 40 years, a family at the median income used 21.9% of their income to buy a median sale priced home. In 2009, the median family income only needed 15% of their income to pay a mortgage on the median home price.
- Missouri had a low level of foreclosures over the last two years – between 1-5% of the sales were foreclosures.
U.S. Economy:
- There was negative inflation in 2009 for the 1st time since 1998. However, the return of normal inflation levels in November and December 2009 is a positive sign for the economy.
- High unemployment rates continue to be a problem and need to be stabilized in order for the economy to recover.
Check back for Part 2 of the Vision Speech presentation – National Association of Realtors Buyer & Seller survey results.
PDF Possibly Related Posts:
- St. Louis Housing Market ~ 10 Year Trends
- Selling a Home ~ Discount Listings vs. Full Service Listings
- What is Important to Home Buyers and Sellers?
- PMI Report – St. Louis Housing Market at Low Risk for Price Declines
