No one expected 2020 to be the year of a global pandemic. Up until the initial months of the year, everything was business as usual (with a few exceptions). But […]
The Builder Application Survey (BAS) sponsored by the Mortgage Bankers Association (MBA) indicates an increase of 54.1 percent in mortgage applications for new home purchases in June 2020, compared to […]
No one expected 2020 to be the year of a global pandemic. Up until the initial months of the year, everything was business as usual (with a few exceptions). But now COVID-19 has changed the way we live our lives. And has also changed the way we do business. This is especially true when it comes to realtors. Social distancing and mandatory lockdowns have forced realtors to transition from open-houses to more modern and innovative approaches to showcase properties. In consequence, realtors have taken advantage of a tool with immense power for brand awareness, engagement, and influence: Social Media.
In the first quarter of 2020, realtors were still conducting their businesses and attending their buyers the same way they have been for years before. The real estate market was a predominantly “in-person” industry. Property viewings, signings, and notarizations were actions that needed to be done in person. There were alternatives, they just weren’t paid too much attention.
On January 1, 2020, the state of Florida passed House Bill 409 and became the 21st state to adopt Remote Online Notarization (RON). This new bill allowed real estate professionals to close transactions, even if one of the parties were not physically present. For this, audio and video communication is used to notarize the signer’s electronic signature on electronic documents. However, in the first quarter of the year, very few realtors were registered to take advantage of the bill. It wasn’t a priority for the times. But this changed with COVID-19.
With quarantine orders putting a halt on the real estate market, realtors hastily searched for alternatives to keep their businesses in full swing. Insert the recent increase use of Virtual Showings, 3D Virtual Real Estate Tours, and Social Media.
Social Media is the perfect solution for realtors to face the problem of getting in front of their clients. Besides the fact that through Live Broadcasts, realtors can showcase a property to a considerably larger amount of people than possible in person. Many have already started implementing the use of Facebook Live and/or Instagram Live to display their listings, answer questions or doubts, and provide any extra information.
In addition, through Social Media, you also have the benefit of being able to reach a broader audience. The more followers, subscribers, or “friends” you have on Social Media, the more chances you have to find high-quality clients that are ready to purchase. It also allows you to interact with clients, increase engagement with your content, and be more likely to be recommended to other buyers. There are virtually no limits to the growth you may have on Social Media. And those who have an active social network are the ones who are getting the buyers, listings, and transactions. However, not everybody is highly tech-savvy, and the change in the industry might be harder for some to assimilate than others.
If you are looking to take advantage of Social Media to impulse your business, here’s what you need to do:
It is no secret that these are challenging times. The industry has changed. The old way of doing things is no longer effective and we have all been forced to overcome different levels of adversity. But those that put in the effort to adapt to the new way of conducting business will see the results they desire.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.
The Builder Application Survey (BAS) sponsored by the Mortgage Bankers Association (MBA) indicates an increase of 54.1 percent in mortgage applications for new home purchases in June 2020, compared to June 2019. The BAS also indicates a 20 percent increase in regards to May 2020. The registered variation does not take into account any adjustment for typical seasonal patterns.
The BAS provides an early estimate of new home sales volumes based on the application volume from mortgage subsidiaries of home builders across the country; as well as data from other sources. The new home sales volumes estimate can be provided at the national, state, and metro levels.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, recently stated: “The new home purchase market continues to recover – applications surged 20 percent in June, and although this is not adjusted for seasonal impacts, it is another piece of data indicating that homebuying activity that was delayed by the pandemic in March and April is just being realized later in the season. The fact that applications are up over 50 percent from last June further reinforces that point.”
Kan also mentioned that the “MBA estimates that new home sales in June increased 15 percent to a seasonally adjusted pace of 774,000 units – which would be the strongest level of activity since January 2020.”
Although the increase in new home mortgage applications and new home sales is a good indicator of a restabilizing market, the tight supply and availability of houses come into question.
In regards to this, Kan added, “We do anticipate that new home construction will speed up to attempt to better meet demand. However, with the low level of homes for sale on the market, the sustainability of the upward trend in home purchase activity will hinge on supply ramping up more rapidly.”
Lawrence Yun, the chief economist for the National Association of Realtors, addressing this topic stated “new home construction needs to robustly ramp up in order to meet rising housing demand.”
According to the MBA’s recent Builder Application Survey, new single-family home sales had an estimated seasonally adjusted annual rate (SAAR) of 774,000 units in June 2020. This represents a 15.2 percent increase compared to May’s SAAR of 672,000 units.
Analyzing from an unadjusted basis, there were 71,000 estimated new home sales in June 2020, constituting a 9.2 percent increase from 65,000 estimated new home sales in May.
The breakdown of the new home mortgage loans is as follows: 65.1 percent in conventional loans, 22.5 percent in FHA loans, 1.0 percent in RHS/USDA loans, and 11.2 percent in VA loans.
The average loan size of new homes also recorded an increase of over $4,500, growing from $332,702 in May to $338,589 in June.
Homebuying activity is seeing steady growth, as May’s BAS report also indicated a spike in new home mortgage applications in regards to May 2019, and the report from June has solidified this fact.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email titleinfo@titlepartnersfl.com.
Social Media Becomes Realtors’ Solution to COVID-19
UncategorizedNo one expected 2020 to be the year of a global pandemic. Up until the initial months of the year, everything was business as usual (with a few exceptions). But […]
New Home Purchase Mortgage Applications See A 54.1 Percent Increase In June 2020
UncategorizedThe Builder Application Survey (BAS) sponsored by the Mortgage Bankers Association (MBA) indicates an increase of 54.1 percent in mortgage applications for new home purchases in June 2020, compared to […]