Now Is The Time To Capitalize On Alerts

A recent study performed by VeroFORECASTSM predicts that “home prices will appreciate on average 7.1% for the next twelve months.” They attribute historically low rates, inadequate and sluggish new home builds, insufficient inventory, and cash-buyers to keep pressure on these prices. 

Veros predicts a “modest” increase throughout 2022, but low rates will remain.

The research states that:

• 30-year mortgage interest rates have gone from under 3.0% earlier this year to over 4.5% today
• Nationwide price increase of $52,000 (in 2021)
• $200 per month increase in mortgage payments in a median-priced home 
• “Buyers who have $52,000 more equity in their existing home are not likely yet to alter their behavior significantly for this monthly increase.”

Here are some of their housing market predictions (over the next 12 months):

* Source: Veros Real Estate Solutions

Strongest Markets

1. Phoenix-Mesa-Chandler, AZ – 17.2%
2. Provo-Orem, UT – 14.5%
3. San Diego -Chula Vista -Carlsbad, CA – 14.2%
4. Salt Lake City, UT- 14.2%
5. Couer D’Alene, ID – 14.0%
6. Colorado Springs, CO – 13.7%
7. Flagstaff, AZ- 13.6%
8. Tampa-St. Petersburg-Clearwater, FL – 13.5%
9. North Port-Sarasota-Bradenton, FL – 13.4%
10. Olympia- Lacey- Tumwater, WA – 13.4%
    

Weakest Markets

1. Odessa, TX – 2.9%
2. Waterloo-Cedar Falls, IA – 3.1%
3. Grand Forks, ND-MN – 3.3%
4. Midland, TX – 3.3%
5. Houma-Thibodaux, LA – 3.4%
6. Bismark, ND – 3.5%
7. Shreveport-Bossier City, LA – 3.7%
8. Peoria, IL – 4.0%
9. Lake Charles, LA – 4.0%
10. Alexandria, LA – 4.0%

Price Increase is Doubtful

Eric Fox, Chief Economist at Veros, said that “The situation the housing market is in today with prices that will not decrease or even slow down would be analogous to the situation of someone trying to lose weight but can’t seem to have success. If a nutritionist told them they had to start eating healthy meals, stop eating dessert, stop drinking alcohol, and start going to the gym 4 times per week to achieve their weight loss goals, and they questioned why they were not losing weight when the single recommendation they had only partially implemented was reducing their dessert from 4 scoops of ice cream per day to 3. That is the situation that today’s housing market is experiencing. We have a long way to go before fundamentals change in a significant way to cause a moderation in prices.”

How Sales Boomerang Can Help

This data shows that if there is ever a time to capitalize on alerts, it’s now. Sales Boomerang’s automated borrower retention system halts shopping in its tracks by notifying you the moment someone in your database is ready for a loan. Alerts go directly to your inbox – eliminating the hassle of having to login to a portal. Saving you precious time you don’t have to waste and importantly aiding you in retaining your borrowers for life.  

It’s time to identify opportunities before your competitors do. Here are some alerts you will want to keep your eyes peeled for this year:

1. Mortgage Inquiry: with little inventory on the market, home buyers are ready to jump at a moment’s notice when they come across their dream home. Get alerted within 24 hours when your borrower is shopping for a loan with a competitor. 
2. New Listing: know the moment your borrower lists their home for sale. (Note: This is an excellent opportunity to throw your realtor partners into the mix). 
3. Cash-out: You will know when your borrower is credit-qualified and can benefit from cash in their home. The extra cash flow can help them purchase a new car, pay off student loan debt or allow them to buy the beach house of their dreams.