Keller Williams Realty’s co-founder and chairman delivers his most timely speech yet; declares home affordability the most important indicator in today’s economy.
Setting the tone for his annual Vision Speech, Gary Keller, co-founder and chairman of Keller Williams Realty stated candidly, “the next two hours is information that you need to know to be the expert in your local market. You need to be the professional delivering the perspective and the projections so that your clients make informed decisions.”
He then launched right into the numbers that drive real estate paying close attention to home affordability in the United States which consumed 12.9 percent of family household income in 2011. “Affordability in the United States is the lowest it’s been ever in the history of time.” In addition to unprecedented interest rates and low mortgage rates, lower home prices aided by a downward push from distressed properties continue to contribute to improving affordability conditions, he said.
All 12 markets in Canada, on the other hand, saw an increase in home prices, mostly fueled by lower interest rate and a stable market. However, Keller warned against counting too much on conditions remaining high. “The golden days won’t last. That’s the vision, know it and use it.”
Keller then turned his attention to the luxury and investor markets, noting that today’s world population of high net worth individuals has grown by 27 percent since 2008, as did their wealth. “The Luxury market is finding its footing through investors and move up buyers – it’s huge opportunities”
In his closing remarks, Keller counseled agents to keep in touch. “72% of buyers would use their agent again or recommend him/her to others,” Keller announced, “but only 9% of you did! “What does that say to me? Keep in touch.”
On staying up-to-date with current Internet consumer trends, his statements were welcomed with applause: “I am absolutely thrilled, however, that we have a trend line that says your website is quickly becoming more important than any other website. You should make that number go up.” Among the respondents, 56 percent said they used the Multiple Listing Syndication, 45 percent used REALTOR.com and 46 percent visited real estate agent websites.