In this post, Cash for Homes Arizona talks about how you can become a strategic marketer in 2021 with these tips:
Today’s real estate marketing landscape is highly competitive. That means you have to do more than add listings or send emails. On top of that, the pandemic has complicated things further. That’s why unique marketing tactics like virtual tours and video marketing are the need of the hour.
1. Observe real estate website best practices
MLS sites and applications continue to remain one of the most valuable marketing tools in real estate. It carries the potential to generate high-quality leads. But, to attract those leads, your site must observe the best SEO and marketing practices.
Below are some of the most effective SEO practices that can generate great leads:
Make sure that your site is user-friendly, responsive, and easy to navigate across pages
Keep the layout and design eye-catching
Place a search bar on the website that has been IDX-optimized
Fill up your website with high-quality videos, infographics, and professional photos
Place appealing CTAs (call-to-action) buttons at all the right places
Give interesting descriptions to each property listed on the site
Give brief but comprehensive information about the neighborhood along with real estate resources for each listing
Make sure to supply your contact information including email and contact number so it’s convenient for potential buyers to find you
Place sign-up links for your newsletter and all the social media profiles on which you are active
2. Boost engagement with polls, contests, polls and Q&As
With social media platforms like Instagram rolling out new and interesting features every day, engagement has become easier than ever. If you want to engage your real estate clients use Q&A stickers and polls in Instagram stories. Use interesting GIFs and put out appealing questions.
The more you can engage users, the better likelihood they have of coming back to you. Also, high engagement tells IG algorithms that you offer great content. As a reward, you’ll score better organic reach. You can also run all kinds of contests, reveals, and conduct giveaways all from within the IG stories.
It’s all about mastering the art of getting and keeping users engaged so they want to keep coming back for more.
3. Invest in video marketing
2021 is going to be all about the video. Video marketing is hot right now and it’s here to stay. It makes more sense for real estate as real estate is all capturing the appeal visual; which videos do well. In 2021 you must leverage the power of video marketing using hyperlocal targeting.
Be sure to produce videos consistently capturing the neighborhoods that you represent. In videos, you can cover different aspects of living in that area such as lifestyle, entertainment, housing features, and other perks of living.
To reach the maximum number of viewers from the areas you serve, use keywords within your titles and all the YouTube and Facebook ads you run with strong CTAs. This practice will help to drive traffic towards your real estate site.
4. Be sure to run a blog actively
It’s a good practice to have an active blog that you update regularly. If you don’t already have one, it will be good to start one. A blog can help you on multiple fronts. First, it acts as a source of education for both potential and present clients.
It also makes your business come across as a credible one since people like to Google everything online. Other than that, it also creates an open dialogue with everyone who’s part of the real estate game in your area. Optimizing your blog content for all the right keywords can also help you score top rankings against local searches. This will help you attract higher organic traffic and bring more customers to the door.
5. Offer home valuation to capture leads
Offering home valuation is an excellent way to capture leads and something to think about in 2021. For this method, you will need to create a landing page that offers a free evaluation to property owners. The visitors can come on to your site and get to know the worth of their cost. It’s better if you do this free of charge.
In exchange for this small favor, you can ask for the user’s contact details. You can evaluate the property in two ways:
If you want to go with instant evaluation, you will have to build a tool. For that, you will need to work with a developer so he can build the exact kind of evaluation tool you want and embed it to work seamlessly within the site.
In case of delayed evaluation, you will need to physically visit the property to perform an evaluation before giving the estimate. Check out both methods and see which one works best for you.
6. Collaborate with a real estate Influencer
Influencer marketing is the big boy on the block. The year 2021 is going to see more of it. It’s extremely effective and everyone’s doing it, including real estate agents. Influencers have millions of followers.
For a nominal fee, they can help spread the word on your behalf and get your details out to thousands and millions of their followers. You must work in collaboration with them to get the maximum juice out of your influencer marketing efforts.
7. Use more of email marketing
Remember, we’re living in corona times. During the pandemic, there’s no better way to reach people than via their inboxes. As you’re adapting to the ‘new normal’, email marketing is pretty effective in sending regular updates to attract potential leads and clients.
You can use Email marketing and newsletters to give 3D visual tours of the properties available and also inform your followers about new properties up for sale. Make sure to use email marketing and newsletters as a key marketing plan in 2021.
While unemployment has remained stubbornly above pre-pandemic levels, record highs in the stock market have pushed the net worth of all households in the U.S. to a new high, despite the fast growth in household debt.
The net worth of households in the United States climbed to $123.5 trillion in the third quarter, up 8% from a year ago, the Federal Reserve said in a report Wednesday.
The Fed, which calculates net worths by subtracting overall debt held from the sum of assets like savings and equities, attributed the gains to the surging value of stocks, which jumped $2.8 trillion in the third quarter, as well as real estate, which increased in net value by $400 billion.
Meanwhile, household debt, which includes mortgages, credit card debt and personal loans, jumped at an annual rate of 5.6% in the third quarter, reaching $16.4 trillion; that’s the fastest growth this decade, beating out a 3.9% increase in 2017.
Business debt fell 0.9% to $17.5 trillion in the third quarter, while federal government debt jumped 9.1% to $26 trillion.
“We’ve seen home prices rise, market prices for tradable instruments rise and savings increase… but those gains skew to upper income people,” KPMG Chief Economist Constance Hunter told the Wall Street Journal. “It’s a vicious cycle,” she added of the pandemic’s disparate impact on lower-income Americans. “Not only are lower-income households more impacted, they also are less likely to have the resources to draw upon to support their families.”
The S&P 500 jumped 8% in the third quarter, while the tech-heavy Nasdaq Composite soared nearly 12%, and both have reached record highs in the fourth quarter–as has the Dow Jones Industrial Average. But far from everyone benefits from those gains. According to a Gallup poll in March and April, just 22% of Americans making less than $40,000 annually said they owned any stocks, compared to 84% of people making at least $100,000 per year.
There were 10.9 million unemployed people in the country last month, when the U.S. economy added a much lower-than-expected 245,000 jobs, according to data released by the Bureau of Labor Statistics last week. The number of unemployed people in the U.S. remains more than three times higher than it was before the pandemic, during which 22 million Americans have been forced into unemployment.
I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at email@example.com.
On Thursday, existing home sales were just the latest piece of housing data to exceed expectations, with homes selling at an annualized rate of 6.85 million last month, the fastest pace since April 2007.
Housing starts data published Wednesday showed new homes under construction rose to the fastest pace since February while permits to build homes are at more than 13-year highs. But this uptick in home construction isn’t likely to do much to ease this tightness in the market.
The scars of the housing crisis are deep and won’t likely be forgotten for some time.
“Homebuilders’ confidence has soared even though the actual production has not,” said Lawrence Yun, chief economist for the National Association of Realtors. “All measures, such as reduction to lumber tariffs and expansion of vocational training, need to be considered to significantly boost supply and construct new housing.”
But a resurgence in the virus combined with this troubling inventory dynamic likely keeps a lid on further gains in home sales in the months ahead.
“The clear message from the mortgage applications numbers, which have been drifting gently downwards since late August, is that home sales have peaked,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. On Wednesday, the weekly report on mortgage applications showed a 0.3% decline in total applications last week.
“We don’t expect a significant reversal of recent gains,” Shepherdson added, “but the period of surging home sales — new and existing — is over. Tighter lending standards appear to be reducing the flow of new applications, and the current downshift in growth in the face of the third COVID wave can’t be helping, either.”
Amid all the uncertainty brought on by COVID-19 over the past six months, one thing is assured: the pandemic has re-ordered real estate markets across the board on an unprecedented scale.
Some of this may be irreversible. Real estate’s re-sorting this time isn’t just based on markets crashing (the Great Recession), political turmoil (the 1979 oil embargo), or financial speculation (the first and second dot.com busts)—after which there’s generally confidence that overall consumer demand and buyer preferences will sooner or later snap back to normal.
Thanks to the COVID-19 pandemic, more deep-seeded, tectonic-sized questions beyond markets and interest rates are being asked this time around that no one really has the answers to yet—like will people feel safer living in the south and southwest where they can spend all year social distancing outside? What if companies let workers work remotely for the rest of their lives? Why go back to retail shopping when I’m already ordering everything online? What’s the point of living “downtown” if half of the restaurants, bars, and museums never open back up?
How these questions get answered will fundamentally re-order how Americans live in the “new” pandemic normal, and as a result will play a huge X-factor in which cities and states will experience growth, demand, and price appreciation over the next 3-5 years, and which ones will stagnate and lose out. More broadly for large metropolises like Washington, D.C., New York City, and Philadelphia, the answers risk slowing or even reversing a wave of gentrification and wildly profitable downtown revitalization that’s been accelerating since before the Great Recession.
Against this backdrop, real estate’s new normal is also creating huge swathes of opportunity. Dozens of cities and counties that were once considered too small, too southern, too hot, too flat, or lacking in amenities, culture, or sophistication are now finding themselves being swooned to the top of the real estate desirability lists as Americans seek warmer, healthier, less dense, better educated, and more mobile places to live that offer closer access to the outdoors, better hospitals, and more open space with no clear end to the pandemic in sight.
To get a better view on what’s really happening to real estate in America right now I decided that it was time to do a deep dive into the actual data from the experts—including CoStar, Zillow, and Realtor—on how COVID-19’s great migration is actually shaking out and where the money and bodies are moving.
Here’s what I found out.
No matter who I spoke with, a few words kept resurfacing as we lurch into the post-pandemic future: warmer, safer, smaller, stabler, lower taxes, less regulation, and fewer lockdowns.
Regardless of where people come from or where they’re going, these things aren’t new on the list of what most Americans generally expect from the places they live, especially as they get older. (Northeasterners have been moving south and west for generations). The more interesting pandemic sub-text is the acceleration factor—and how the places where Americans are moving in the midst of COVID-19 may finally be expressing a more fundamental preference for how they reallywantto live instead of where they haveto stay because of their job location or where their kids go to school. It also says a lot about where many American’s heads are right now, and more importantly, the specific criteria with which they’re considering making one of the most important next decisions of their lives in an era of unprecedented uncertainty.
The repercussions of America’s great COVID migration has the potential to re-shuffle the essential demographic and economic balance of America for the next generation. Realtors, investors, and politicans should be paying attention.
Page-per-property views on real estate platforms like Realtor and Zillow are up over 50% year-over-year almost everywhere, inventory in America’s 100 top metro markets has been shrinking since March, along with days on market and the gap between list-to-sale price. A lot of real estate experts prefer the word “despite” when it comes to accounting for this phenomenon while the pandemic’s still raging, when it’s probably more accurately “because of”.
“Real estate markets have undergone noticeable shifts since the start of the coronavirus pandemic,” George Ratiu, Senior Economist at realtor.com tells me. “In the wake of the lockdowns in March, Americans discovered that existing homes were not adequate for the new work, teach, exercise, cook and live at home reality. Based on realtor.com surveys of consumers, we learned that home shoppers are looking for more space, quieter neighborhoods, home offices, newer kitchens and access to the outdoors, traits which have revived a strong interest in the suburbs and smaller metro areas.”
The other clear trend since the COVID-19 pandemic began is that residential real estate is on a tear virtually everywhere.
Previous recessions and economic shocks tended to pull some regions down while sparing or barnstorming others. This time, so far, every region’s a winner—as Americans put more stock in their quality of life, work, walkability, and community when it comes to where they root themselves next other than just the cables that previously tied them to their workplaces.
The Northeast real estate market remains strong, despite all omens otherwise since New York City was the original epicenter of COVID-19 flight back in March, and the overall low-tax, lower regulation trends across the country that aren’t in the region’s favor. According to realtor.com’s most recent data, five of America’s hottest real estate markets are in New England—Rochester, NY, Melrose, MA, Portland, ME, Hudson, NH, and Worcester, MA—each of which ranked in the top ten across more than three categories including lowest days on market, list-to-sale ratio, or page views per-property.
Data crunched by real estate platform Zillow’s research group paints a similar picture of strong regional growth across small cities as well suburbs within an hour of established major metro areas. I had Zillow look at the 100 largest metro areas based on five metrics—median sale price, median list price, days to pending, share of listings with a price cut, and page views—and grabbed the top and bottom seven in each one.
At the top of Zillow’s list as of October 2020, three of America’s hottest real estate markets are in Ohio: Columbus, Cincinnati, and Dayton. Boise and Salt Lake City also made the list, along with Stamford, CT outside of New York City. Austin came in number one. Louisville, KY, Memphis, TN, Honolulu, and Des Moines, IA were at the bottom on Zillow’s aggregate list, though Zillow’s economists were quick to point out that in today’s market that means “less good”.
“Even the coolest markets in America right now are generally performing well and tilted in favor of sellers,” says Cheryl Young, senior economist at Zillow. “There’s a lot of demand for housing right now and homes are typically selling quickly for prices above what we were seeing last year. It’s also worth noting that the bottom performers for the most part aren’t decreasing. They’re just increasing at a lower-than-average rate. The residential market is on fire right now in most of the country, so these ‘coolest’ markets aren’t necessarily doing all that poorly.”
Trends show Americans are also still moving where businesses move, despite the work-from-home trend accelerated by COVID-19. Even if Americans don’t have to show up to the same office every day, the tax base, culture, vibrancy, hospitality backfill, and infrastructure (think school districts) that a thriving business and entrepreneurial community supports long-term is one of the essential underpinnings of a successful residential real estate market.
From this perspective, COVID is accelerating demographic trends that were already in place before the pandemic, especially when it comes to businesses seeking places to expand that are pro-growth, low-tax, politically stable, and stacked with an educated work force in advanced degrees like engineering, math, technology, business, and law. Austin, Salt Lake City, Raleigh, Charlotte, Nashville, and San Jose all top the list in 2020 in this respect according to CoStar, with occupied office growth expected to exceed 10% over the next five years. Dallas, Miami, Phoenix, Atlanta, San Antonio, and Boston aren’t far behind—all expected to grow by 8%+ as of Q3 2020 according to CoStar.
“Businesses will continue seeking low-cost alternatives to more expensive coastal markets COVID-19 or not, which has fueled growth in markets like Atlanta, Phoenix, or Dallas, though workers that might have once opted for downtown living have shown a preference for suburban locales in recent months,” says Andrew Rybczynski, Managing Consultant at CoStar. “Smaller, well-educated markets with similar structural advantages, like Raleigh, Charlotte, or Austin also qualify, especially because of their attractive workforces. While COVID and the recession it caused will hurt business growth and office absorption, we expect the structural advantages of many southern and southwestern markets to continue through foreseeable future.”
When Rybczynski refers to “structural advantages”, what he means is governance. Using a simple measure of tax burden, CoStar correlates a rough relationship between lower taxes, pro-business governance, faster growth, and increased in-migration—all of which are currently skewing towards American metro areas with local and state governments that are willing to keep regulations and business costs low in exchange for job growth and economic opportunity.
For what it’s worth, these “structural advantages” also skew politically. 10 of 12 of America’s cities forecasted to experience the fastest growth in occupied office space according to CoStar over the next five years have Republican Governors, Legislatures, and Mayors. Nine of the top 15 cities where businesses are relocating and mopping up office space are in three states that predominantly lean Republican—Texas (4), Florida (3), and North Carolina (2)—including Austin, Dallas, San Antonio, Houston, Miami, Tampa, Orlando, Raleigh, and Charlotte respectively.
At the same time, however, Americans and its companies are not always moving in the same direction, suggesting a de-coupling of one of the most fundamental drivers of American migration for generations—namely people living near where they work. In some instances there’s overlap, like Austin, Raleigh, Columbus, and Salt Lake City. But overall Americans appear to be moving during the pandemic for more personal reasons than being simply motivated by employment or corporate relocation.
“The hottest housing markets in the new landscape are cities which offer desirable amenities—larger homes, leafy neighborhoods, access to the outdoors, walkability and proximity to grocery stores—in a more affordable package,” says realtor.com’s Ratiu. “Home buyers still want to be within commuting distance of large employment centers, but with the prevalence of remote work, they are willing to extend the distance from urban downtowns.”
In addition to the five Northeastern locations on the top of realtor.com’s hottest real estate markets to watch list right now, Colorado Springs, CO, Columbus, OH, Topeka, KS, Springfield, VA, and Raleigh, NC also ranked in the platform’s top ten in at least three criteria for precisely these more emotional reasons, say Ratiu.
“The current housing market is driven by several noteworthy factors. First, America’s demographics are skewing younger as the Millennial generation—the largest in U.S. history—is finally embracing home ownership. Second, the technological promise of the mid-1990s of freeing workers from their desks has come of age in 2020, as the coronavirus-induced quarantine has forced employers to rely on workers working-from-home. Americans have been resoundingly successful at navigating this transition, and in the process, discovered the benefits of shorter commutes and the flexibility of being able to work from anywhere.
In turn, this has shifted consumer preferences for housing, driving the transition into suburbs, smaller cities, second-home destinations and even rural areas. Third, riding in the wake of a decade’s worth of home price appreciation which has outpaced income growth, many Americans are seeking affordability again, leading many buyers into suburban neighborhoods and away from high-cost, high-density urban downtowns.”
Who’s notably absent from all the data?
Not a single city in California or the Pacific Northwest ranked anywhere near the top of anyone’s “Best Of” lists in terms of where Americans are moving, which suggests that the effects of COVID’s first flight from coastal cities last March may be fossilizing permanently. New York City, Long Island, northern New Jersey, Honolulu, Chicago, and Philadelphia were also conspicuously in the basement, reinforcing America’s net emotional migration away from high-priced real estate markets as well as high-tax, high-lockdown urban locations.
So what’s the bottom line? Keep your bathing suit and laptop ready to pack. The longer COVID-19 continues to push Americans into the “new” normal, the more of us will be moving south and west, working by the pool. Sometimes it’s worth just rolling with the data. Follow me on Twitter or LinkedIn. Check out my website.
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Mortgage rates are now at their lowest point in history and they seem poised to go even lower. Danielle Hale, chief economist at Realtor.com joined Yahoo Finance’s The First Trade to discuss the possible impact the coronavirus could have on the housing market. #coronavirus#mortgagerates#housing market Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Connect with Yahoo Finance: Get the latest news: https://yhoo.it/2fGu5Bb Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz
My good friends Paul and Kelsey are known as The Flippin Experts. They’re my go-to for questions regarding real estate and house flipping. I went to Paul and Kelsey with one question, “How has the pandemic affected real estate?” and was pleasantly surprised with the tips they provided, which I have shared with you below.
It is no secret that real estate is used as a vehicle to generate wealth and create jobs across America. Studies show that the real estate industry — encompassing real estate finance, insurance, rentals, and leasing — added the most value to the Gross Domestic Profit (GDP) of the United States in 2019, adding 4.49 trillion U.S. dollars to the national GDP.
The Flippin Experts forecast that real estate will continue to be a portfolio and profit builder for entrepreneurs, contrary to some skeptics citing that the global pandemic and recent national events could negatively have an impact on the real estate industry.
Here are three reasons why you should think about investing in real estate:
1. Supply and demand
Now, more than ever, people recognize the need for a safe place to call home. Home is no longer just the place you sleep. The recent pandemic may be forever changing the way business, school, shopping, social relations and life, in general, is done! As a result, the home space is now also becoming the office, classroom, restaurant, and place of entertainment. As the demand for housing is continuing to rise, so are the prices as inventory is decreasing. As a result of the low inventory coupled with an increasing demand, real estate investors will have the opportunity to sell their properties at the highest rate with less competition.
Mortgage interest rates hit an all-time low this June. Making it the time for homeowners to purchase the home they have been longing to buy. This will also help investors by lowering lending and private lending rates. This will assist the housing market and benefit both buyers and sellers.
3. Economic uncertainty
There are companies who closed their doors for social distancing which are now announcing that they will not re-open. The future of businesses and careers are in question. Uncertainty and fear paralyze, but things will not stand still forever. Many people long to be safe, and as a result, they will look to the comfort of liquidating that second home or selling that short-term rental property that they were dabbling in, etc. While everyone else is waiting, saving, and eventually selling, it is the entrepreneurs who are going to take the risk, invest, and watch their profits soar.
Government evictions and foreclosure sales have been on hold, but as soon as the green light is given, a flood of distressed properties will become available for sale, and in need of the perfect cash buyer/investors to buy, renovate, and resell.
The combination of these reasons above creates the perfect time. Invest in real estate now.
By: Randy Garn Entrepreneur Leadership Network VIP Investor / Entrepreneur
On a recent episode of the podcast “The Side Hustle Show,” hosted by Nick Loper, real estate investor Dustin Heiner explained how he was able to retire at the age of 37 by investing in rental properties.
Heiner breaks down the steps investors should take before buying a new property, and how those rental properties can make them money. He stressed picking the right city and state, assembling the right team, and the importance of the $250 monthly passive income benchmark.
Dustin Heiner is a seasoned real estate investor who retired at the age of 37 and makes roughly $15,ooo a month in passive income from his rental properties.
On a recent episode of the podcast “The Side Hustle Show,” hosted by Nick Loper, Heiner revealed how he went from working in a local government office to working for himself, and laid out the steps investors should take before deciding where to buy property.
Back in 2006, Heiner bought his first rental property in Ohio for $17,000 in cash. He explained on the podcast that in his first month of renting out a home, he made around $350 after expenses. That number would prove significant as Heiner began investing more and more.
In order to turn the side hustle into a full-time gig, he explained, he had to invest in more properties that gave him the same type of monthly cash flow.
“If I were to multiply that out, one property is $300, 10 properties, oh my goodness, that’s $3,000 a month. That is $36,000 a year.”
In 2016, he had around 26 properties, so he quit his day job and focused full-time on rental property investments. He said that today, he owns over 30 properties.
Heiner admitted he was lucky with that first deal he found in Ohio. “I did everything wrong,” he explained. However, over 10 years and many properties later, he said he had developed a system of steps he suggests everyone takes before making a new purchase.
First, pick the state you want to invest in
Once the state is decided, Heiner uses Zillow to do research on the cities within that state. He looks at highly populated cities with a lot of available properties, he explained. Then, once the city is narrowed down, he looks at all the properties within that city to see if they meet his criteria. This means looking for a property that matches up with the amount of money set aside for the investment and high rental income rates.
“Here’s a principle for everybody listening, you want to buy for $250 or more in passive income [a month] after every single expense,” he said on the podcast……
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Last year, we took a look at how much real estate agents earn on average in all 50 states based on data from the Bureau of Labor Statistics’ (BLS) 2018 Occupational Employment Statistics data. Now, in 2020, the BLS has updated salary figures for both real estate agents and real estate brokers. Based on the latest BLS data, the average real estate agent annual wage in the United States is $62,060, while the average annual wage for real estate brokers is $81,450.
These two occupations inevitably have very different salaries depending on where you’re working. From state to state, the average salaries for real estate agents and real estate brokers can vary significantly. For example, while the national average annual wage for real estate agents is just over $60,000, in the top-earning state for real estate agents, the average salary is $111,800, which is close to double the national average. Read on to find out where real estate agents and brokers earn the most money and where they earn the least.
10 States Where Real Estate Agents and Real Estate Brokers Earn The Most Money
When comparing the highest-paying states for real estate agents versus real estate brokers, there are only three states that are among the top-10 states for both occupations. The other seven states where real estate agents earn the most are different than the ones where real estate brokers earn the most. Here’s a closer look at where real estate agent salaries are the highest.
10 States Where Real Estate Agents Earn The Most Money
Here’s a breakdown of the top-10 states in which real estate agents earn the most money on average:
New York average real estate agent salary: $111,800
Massachusetts average real estate agent salary: $84,180
Connecticut average real estate agent salary: $79,780
Alaska average real estate agent salary: $79,360
Colorado average real estate agent salary: $76,850
Utah average real estate agent salary: $75,170
California average real estate agent salary: $74,140
Texas average real estate agent salary: $72,830
Wyoming average real estate agent salary: $71,460
Hawaii average real estate agent salary: $71,140
Perhaps not surprisingly, New York, with the insanely expensive real estate of New York City, its suburbs and Long Island, is where real estate agents earn the most, an average of $111,800 a year. The top-10 states for real estate agent salaries are primarily in the Northeast and out West, including both Pacific Coast and the mountain states of Colorado and Utah.
10 States Where Real Estate Agents Earn The Least Money
Here’s a breakdown of the bottom-10 states in which real estate agents earn the least money on average:
Illinois average real estate agent salary: $42,130
Minnesota average real estate agent salary: $46,130
Idaho average real estate agent salary: $47,350
Ohio average real estate agent salary: $47,420
Indiana average real estate agent salary: $47,670
South Carolina average real estate agent salary: $48,560
Delaware average real estate agent salary: $49,410
Nebraska average real estate agent salary: $49,860
New Hampshire average real estate agent salary: $49,970
North Carolina average real estate agent salary: $50,160
The states in which real estate agents earn the least tend to be located in the U.S. Midwest and South regions, although Idaho is part of the West region. Illinois, where real estate agent salaries are the lowest, has seen a dramatic fall in real estate agent wages over the last five years. From an average annual wage of $75,270 in 2014, the average real estate agent salary has fallen by 44% as of 2019, where the current average is a mere $42,130 a year. Delaware, too, has seen a substantial decline in wages, with its average real estate agent salary dropping by 18.5% since 2014, when it stood at $60,600.
10 States Where Real Estate Brokers Earn The Most Money
The average real estate broker salaries tend to be a bit higher than real estate agent salaries in most states. As mentioned before, only three states overlap between these two lists of states: California, Massachusetts and Texas. One thing to note, however, about average wages for real estate brokers is that the BLS data is less complete than for real estate agents, in this case not having salary data for 11 states.
Here’s a breakdown of the top-10 states in which real estate brokers earn the most money on average:
New Mexico average real estate agent salary: $112,860
Massachusetts average real estate agent salary: $109,140
California average real estate agent salary: $104,120
New York average real estate agent salary: $99,930
Texas average real estate agent salary: $95,150
Nevada average real estate agent salary: $93,850
Wisconsin average real estate agent salary: $93,400
Maryland average real estate agent salary: $92,540
Indiana average real estate agent salary: $89,720
North Carolina average real estate agent salary: $84,770
New Mexico has experienced an incredible rise in real estate broker salaries. In 2016, the average annual wage for real estate brokers in the state was only $46,130. As of 2019, the average is $112,860, an increase of 144.7% in just three years. About half the states on this list, however, have actually seen salaries decline from 2014 to 2019, while real estate broker salaries increased in California, Wisconsin, Maryland and North Carolina.
10 States Where Real Estate Brokers Earn The Least Money
Here’s a breakdown of the bottom-10 states in which real estate brokers earn the least money on average:
Illinois average real estate agent salary: $46,820
Oklahoma average real estate agent salary: $47,350
Utah average real estate agent salary: $47,460
Louisiana average real estate agent salary: $50,590
Alabama average real estate agent salary: $50,810
South Dakota average real estate agent salary: $53,060
Minnesota average real estate agent salary: $54,060
Missouri average real estate agent salary: $54,920
Vermont average real estate agent salary: $55,250
Nebraska average real estate agent salary: $59,330
Once again, Illinois ranks as the worst state for real estate broker salaries. The state has witnessed a major decline in wages, with the average annual salary for real estate brokers being $90,700 in 2014, before falling by 48.4% to a current average of $46,820. Oklahoma, though having the second-lowest average annual wage, has at least seen real estate broker salaries rise by 24.7% over the last five years.
How Much Real Estate Agents and Real Estate Brokers Make In Every State
Below are two tables featuring a full breakdown of the average annual wages of real estate agents and brokers in every state there was available data for. Also included is the five-year change from 2014 to 2019.
How Much Real Estate Agents Earn in Every State
Here’s a breakdown of the average annual wage for real estate agents in all 50 U.S. states.
Average Real Estate Salaries by State
Mean annual wage for real estate sales agents in all 50 U.S. states
I’m a finance writer with years of experience covering topics such as taxation, Social Security, entrepreneurship, investing, real estate and housing markets. My work has appeared on MSN, Yahoo Finance, Fortune, CNBC, CBS, U.S. News and more.
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Amidst the pandemic the housing market has ridden turbulent waves as we bluster through varying stages of uncertainty, but since restrictions were lifted on May 13 there have been strong indicators of rapid recovery in the market as pent-up demand and returning consumer confidence look to feed the horse that drives the British economy.
Nevertheless, there is a concern that this recovery may be short-lived as the released demand plateaus and the challenges facing the economy and incomes of Britain’s myriad savers come to the forefront.
A Reuters poll of property market analysts published yesterday reported that house prices are anticipated to fall by 5% this year as elevated unemployment levels due to coronavirus and the subsequent lockdown diminish demand. The fall in house prices as projected through the Reuters poll is anticipated to be relatively short-lived, with prices to increase 1.5% next year and 3.5% in 2022. But a worst-case scenario from the 21 polled analysts concerns an 11% fall in the house prices this year.
This potential issue is overshadowed by the greater issue that is the decimation of almost 90% of the first-time buyer mortgage market, as many lenders withdraw their 90-95% loan-to-value (LTV) products – the biggest casualty of which was last week’s announcement from Nationwide, the nation’s biggest lender, which reduced the home value it was willing to lend against from 95% to 85%. Meaning that savers would need a deposit three times greater than before to afford a mortgage.
Mortgages in remission
I have discussed before my concerns over some of the doomsaying surround house price falls this year, as I do not believe that the damage will be as severe as many are anticipating. There is no doubt pain to come, as from the ashes of this pandemic, and the government response, there will be winners and losers. However, I have stood by my assessment that any damage to the housing market will be minimalised and short-lived as the country and the economy recovers.
Sadly, the withdrawal of mortgage products at this level might set in motion a domino effect with far reaching impact. I understand the basis behind it – banks wish to avoid the risk of negative equity befalling homeowners if the payments of their mortgage exceed the value of their home due to a drop in house prices. Nevertheless, I take this as a relatively short-sighted view, if we consider that the value on one’s home should be perceived as a long-term investment. Prices will go back to normal, even the most depressing of price fall depictions are open about that.
The withdrawal of most 90% and 95% mortgage products means that first-time buyers face a steep hurdle at a time when savings are already dampened due to historic low interest and savings rates. If the government intended to reinvigorate the economy by loosening lockdown restrictions on the property market, then this action is clearly counter-intuitive. And what good will the Bank of England’s key interest rate at a mere 0.1% do for the economy, if mortgages remain firmly out of reach for first-time buyers?
Consider also that if first-time buyers now struggle to get on the ladder, homeowners the next rung up will have difficulty selling their own properties; in turn perhaps forcing them to lower prices to entice a buyer, which will fuel the banks’ concerns of negative equity spilling over.
The withdrawal of mortgage products has already led to confusion and difficulty in the marketplace. A survey conducted by Butterfield Mortgages between May 29 and June 02 of more than 1,300 homeowners and prospective buyers found that approximately half of buyers had been denied a mortgage this year as a result of coronavirus, despite having a mortgage in principle. This has had a damaging effect on property transactions, and only serves to fuel uncertainty the recovery of the housing market.
Where banks fear to tread
Lenders have argued that with many of their staff still on furlough, they lack the resources in place to adequately process the high volume of mortgage applications that have hit their desks. But this is also because they anticipate a rise in unemployment when the government withdraws support schemes in the autumn.
There are significant financial concerns over the state of the employment market and personal savings in the months to come as the threat of redundancy and business collapse remains. And with the government looking to ask businesses to take on a greater share of furlough contributions from August, there is a risk of more workers facing redundancy if their employer cannot support their position. If this were to lead to a wider sell-off in property it will only serve to drive down house prices further and add further challenges to the housing market as the banks’ fears of negative equity grow in stature. The withdrawal of these mortgage products would then cease to be a short-term measure as the U.K. would likely be facing a more prolonged economic recession before recovery.
Can the lenders find the courage to lead?
When the government relaxed restrictions on the housing market last month, they did so because they recognised that property is the apple cart of the U.K. economy. The health of the former supports the health of the latter, and so doing acts as a barometer of the health of the country in house prices–if people are not buying, then there is a problem.
This starts at the bottom of the ladder, and in one of my previous Forbes.com pieces I set out why first-time buyers need more help, and some possible solutions through which the government can step in to address. These included an extension of the Help-to-Buy scheme, both by reopening it to new first-time buyers and to the resell market as well. The other major suggestion I continue to support is a temporary reduction to Stamp Duty Land Tax (SDLT) which would spare up some additional cash for buyers up the chain to put towards a larger deposit share on a mortgage. But as first-time buyers are entitled to relief on SDLT up to the first £300,000, this would have little to no benefit for most purchasers.
But the onus is not just on the government to support the housing market, banks too have a responsibility to support the health and growth the economy. Yet banks on this occasion have taken a very cautious approach to risk where their confidence in the recovery of the market holds forbearance.
Perhaps this comes from the overemphasis on house prices; the most recent Nationwide House Price Index noted a 1.7% fall in house prices during May, likely precipitating the withdrawal of many of their mortgage products as further declines are feared.
In my antithesis to Nationwide’s stats however, I argued using data from Reapit – going back to before the lockdown commenced – that the housing market’s quick recovery in the weeks since restrictions were lifted showed that consumer demand is still on a moving treadmill that won’t stop running now that the market is open again. There may be dips in the months ahead, and a W-shaped recovery is the most likely outcome for the time being, but the market will keep moving forwards. Which is why additional support from the banks would go some way to boost the home-owning chances of the country’s savers.
I am not here making a fevered pitch for lenders to throw caution to the wind and issue out mortgages to anyone who asks for them – caution should remain paramount. But I am suggesting that the banks can do more to help, to bet on the British economy’s long-term recovery rather than its short-term losses.
We bailed out the banks in 2008 after the financial crisis. Perhaps now is the time for the banks to return the favor.
I am the CEO of Reapit and responsible for driving its vision, overall direction and strategy. As a member of the Reapit management team, I have helped the business become the market-leading platform that it is today. Previously, I was with Countrywide where I held various senior roles in both Finance and IT.
Will the housing market crash or will it recover quickly as we come out of lock-down and the current Covid-19 epidemic? Many people are claiming to know exactly what will happen to the UK property market, but the truth is we are in a unique situation and each of the factors that drive property prices will have its part to play. In this video, we look at the factors behind what influences house prices in the UK and where we are at the moment so that you can form your own opinion view about what you think will happen to house prices over the months and years to come. We rely on your support, to see the exclusive benefits of supporting us and becoming part of our community click here: https://patreon.com/pensioncraft