Real Estate Fluctuations Throughout the United States and How You Can Adapt
According to the United States Census Bureau, there are four regions of the United States - the West, Midwest, South, and Northeast. These regions are diverse in so many different ways, including real estate. Because of this, you have the opportunity to demonstrate your knowledge as an astute real estate agent. Be sure to take stock of regional differences to better accommodate your clients and see what advantages you can advertise about your area, especially to out-of-town buyers.
Here are just a few ways that real estate differs in each of America’s regions.
It’s no secret that the coasts have some of the most inflated housing prices in the nation. This means that real estate professionals in this area have the best opportunities for unlimited earning potential. However, it also means that buyers and sellers might be particularly frustrated in this market. As Trulia’s heat map of American home prices illustrates, California consistently features some of the highest home values in the nation. In markets on the West Coast, you might encounter buyers who have high expectations. Especially if buyers are new to the Coast, they might have unrealistic expectations about what they can truly afford. It is up to you to help them find the perfect home that fits within a budget, even a West Coast budget.
The Northeast is a complicated mixture of new and old and the housing market demonstrates this. As Forbes states, “the areas of best growth in the Northeast are outside the major cities, where it's cheaper to locate or expand a business.” This region struggles with keeping millennials living in suburban areas because “in the past decade, New York City has added 600,000 jobs, while the entire rest of the region has added just 88,000.” As a real estate agent in the Northeast, you’ll likely encounter some issues due to slow economic growth and high housing prices. However, the housing in this area remains valuable and your clients who are looking to sell their property will find great returns.
The Midwest is a hot real estate market for those cash-conscious buyers. According to BiggerPockets, a buyer in the Midwest will “end up spending almost one-fifth of what [buyers] will shell out on real estate in any area on the East or West Coasts.” This area of the country offers a cheaper cost of living, as well as affordable housing. According to RE/MAX INTEGRA, Midwest, “the Midwest will remain the most affordable area of the country in 2018, despite slightly higher home prices. And during this the next year, we’ll see even more buyers take the leap into homeownership.” If you are a real estate professional here, you might see an increase in business, as well as an increase in clients traveling from other places in the country to take advantage of the inexpensive housing market. The Midwest is not always bustling but it is an area of opportunity for the average American family.
Of these ten states predicted to have strong housing markets in 2018, six are located in the South. The south is a region of great growth. With rising housing prices across the nation, homebuyers are escaping to more affordable markets and growing cultural hubs in the South. This is a great area for buyers who are looking for a quieter life, as much of the South is rural or suburban. This region also features a very specific dialect and if you are participating in the real estate market, you’ll want to fully understand how the South uses a unique vernacular.
You should already be adapting to the region where you’re selling a home but it’s also important to remember which region your client is from and adjust your communication style to better suit their needs. Not only do people in different regions pronounce certain things differently, you could be saying the same phrase as your client but talking about two completely different things. For instance, in the North, the phrase “bless your heart” is interpreted as flattery, but in the South, this is typically used as an insult.
Understanding regional differences is imperative as a real estate agent since the “mean center of U.S. population has moved steadily westward and slightly southward since the first census, in 1790,” according to U.S. News & World Report. Being aware of regional distinctions is essential when you’re working with people from all across the nation.