Survey Reveals Optimistic Agent Outlook, Highlights a Strong Sellers' Market
The Real Brokerage Inc. announced the results of its February 2024 Agent Survey, offering insights into housing market trends and real estate agent expectations across the United States and Canada. The survey reveals a resilient optimism among agents about future market conditions in both the United States and Canada, highlighting a prevailing sellers' market, despite overall industry transactions expected to decline year-over-year in February. "We first launched our agent survey in January as a strategic initiative to directly capture the sentiments and experiences of our rapidly growing network of over 16,000 agents," said Tamir Poleg, Chairman and CEO of Real. "With a presence now covering all 50 states and four Canadian provinces, we're excited to share our agents' valuable insights with the broader public. This effort underscores our commitment to transparency and the immense value we place on our agents' perspectives." Sharran Srivatsaa, President of Real, added, "Our agents are the true experts of their local markets. This survey bridges the gap from their individual market insights to broader industry trends, underscoring the pivotal role our agents play in guiding our strategic direction." Key Findings Agents Remain Optimistic About Forward Outlook Real asked agents at the end of February 2024, "Compared to one month ago, are you more optimistic or pessimistic about the outlook for your primary market over the next 12 months?" Among the agents surveyed, 53% felt more optimistic and an additional 16% were significantly more optimistic about the next 12 months, outweighing the 7% who felt more pessimistic and 1% significantly more so. The average response among survey participants resulted in a weighted index reading of 69.2 on a 0-100 scale, with scores above 50 reflecting a positive outlook and those below 50, a negative one, thus signaling an expectation for improving year-over-year growth trends. There were similar sentiments shared by both U.S. and Canadian agents. However, February's index level of 69.2 showed a slight decline from January's 73.7, indicating a modest softening in optimism compared to the end of January. Sellers Continue to Have the Upper Hand When asked "Would you consider your primary market to be a buyer's market, seller's market, or balanced market?" 57% percent of agents noted sellers have the upper hand, an increase of 11 percentage points from January. Total North American Home Sale Industry Transactions Expected to Decline Year over Year in February Real asked agents, "In your primary market, how would you describe the number of transactions closed in February 2024 compared to February 2023?" The average response among survey participants resulted in a weighted index reading of 48.7 on a 0-100 scale, with scores above 50 indicating growth and below 50, a decline. The results suggest a decline in total industry transactions across the U.S. and Canada during February 2024 compared to February 2023, with a decline in the U.S. home sales market, while the Canadian market is expected to grow. February's index reading of 48.7 showed a modest decline from January's 49.0 level. Pace of Decline in the U.S. Improves in February: The total number of U.S. home sale transactions is expected to decline in February 2024 compared to February 2023. However, agents expect an easing in the pace of decline relative to January, with the average response among survey participants resulting in a February weighted index reading of 48.5, improving from 47.8 in January. Canadian Market Growth Continues at More Moderate Pace: Agents surveyed in Canada signaled continued year-over-year growth, although at a more moderate rate compared to January, with the average response among survey participants resulting in the overall Canada weighted index reading decreasing to 51.8 in February from 55.5 in January. Affordability Remains the Biggest Hurdle for Buyers Challenges for prospective home buyers include affordability/interest rates (45%) and inventory shortages (42%), with economic uncertainty (5%) and buyer competition (4%) being distant third and fourth concerns. Nearly Two-Thirds of Agents See Referrals as Most Effective Lead Source Sixty-three percent of agents cite networking and referrals as the most effective source of leads, followed by social media (12%), online advertising (5%), and home search portals (3%). About the Survey The Real Brokerage February 2024 Agent Survey included responses from over 500 real estate agents across the United States and Canada and was launched in the last week of February 2024. Responses to questions regarding transaction growth and agent optimism were calibrated on a 0-100 point index scale, with readings above 50 indicating an improving trend, whereas readings below 50 indicate a declining trend. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real's company-specific growth trends.

[Podcast] The Agent of Tomorrow: Data driven, Socially Conscious with Kevin Skipworth
In this episode of Million Dollar Question, host Billy Ekofo interviews real estate expert Kevin Skipworth, who shares insights on the evolving role of real estate agents and the impact of global trends on local markets. Kevin highlights the resilience of the Vancouver market and stresses the importance of data-driven decisions, sustainability, and personal connections in the industry. This conversation offers valuable perspectives for understanding the dynamic nature of modern real estate. In this episode of Million Dollar Question: The evolution of the real estate industry and the role of agents Analyzing the resilience and trends of the Vancouver real estate market The importance of data-driven decision-making in real estate Global influences on local real estate dynamics Balancing technology and personal connections in modern real estate practices Connect with Kevin: Website: cathieandkevin.com Instagram: @kevinskipworth Listen to this podcast on: Spotify Apple Podcasts Google Podcasts RadioPublic To view the original article, visit the LeadingRE blog.

How Market Trends Impact Brokerage Valuation
There are about 106,000 real estate brokers in America. WAV Group Mergers and Acquisitions leader George Slusser insists that in the market today, "every brokerage should be either a buyer or a seller." For the most part, even when the market size is shrinking, companies can demonstrate their strength by gaining market share. In the absence of significant recruiting or acquisition activity, brokers' business volume floats with the market. If transaction volume in your market is down 35% year over year, but your business is only down 20%, then you are outpacing the market by 15%. Those are impressive results that will normally show up in market share reports. Realtor.com just released their 2024 housing market trends that highlights significant areas that are expected to surge next year. If you are thinking of buying or selling in these markets, having some predictive analytics on what will happen in the housing market should temper your opinion of the valuation of a brokerage. Here are the top 10 markets that Realtor.com expects will have the largest growth in 2024. It is also very interesting to look at the markets that will struggle for transaction volume. These are the major markets that are expected to continue to lag in transaction volume – but pay very close attention to the change in median home price! Metro 2024 Existing Home Sale Counts Year-over-Year 2024 Existing Home Sale Counts vs 2017-2019 Average 2024 Existing Home Median Sale Price Year-over-Year 2024 Existing Home Median Sale Price vs 2017-2019 Average Combined 2024 Existing Home Sales and Price Growth Atlanta-Sandy Springs-Alpharetta, GA -15.80% -41.00% 0.40% 63.30% -15.40% Nashville-Davidson–Murfreesboro–Franklin, TN -11.40% -35.00% -4.80% 51.30% -16.20% Ogden-Clearfield, UT -15.10% -53.10% -3.80% 57.20% -18.90% San Antonio-New Braunfels, TX -10.10% -28.90% -9.40% 27.30% -19.50% Denver-Aurora-Lakewood, CO -15.30% -41.80% -5.10% 35.40% -20.40% Dallas-Fort Worth-Arlington, TX -12.90% -35.30% -8.40% 31.40% -21.40% Charlotte-Concord-Gastonia, NC-SC -22.40% -45.60% -0.90% 58.00% -23.30% Austin-Round Rock-Georgetown, TX -11.70% -39.70% -12.20% 29.10% -23.90% Baton Rouge, LA -20.40% -38.60% -5.60% 17.80% -25.90% Portland-Vancouver-Hillsboro, OR-WA -25.60% -61.30% -7.40% 23.70% -33.00% If you are setting your 2024 goals to expand or sell your brokerage, WAV Group would love to discuss how we can help. Please reach out to any one of us leading this area of expertise: Victor Lund, George Slusser, Finley Hair, or Mark McLaughlin. To view the original article, visit the WAV Group blog.

Why Small Firms and Tech Companies Should Be the Focus of Brokerage M&A
There are two major trends developing in real estate brokerage mergers and acquisitions (M&A) that are dramatically changing the landscape of where agents hang their license and access technology. Both can provide a small business merger solution for brokerages struggling to meet transaction minimums. The first trend involves larger firms acquiring and merging with smaller firms. The second involves the investment in and acquisition of technology firms that serve the needs of real estate agents and teams. Small Firms Selling to Stop the Bleeding There are fixed costs to operating a brokerage. Just think about the basics. Every business needs to handle accounts receivable, accounts payable, payroll, taxes, office expenses, and more in order to operate. Operating a business forces companies to manage this burden, regardless of the number of agents or volume of transactions. There are 108,000 real estate brokerages in America. When you look at the number of transactions per brokerage and you benchmark the bottom third of firms in any market, you realize that the majority of real estate brokerages are operating at a loss. According to George Slusser, my co-author of the book we published last month, Acquiring (More) Profit, "there is a basic economic principle driving merger activity among small firms." The baseline cost of operations in every brokerage is determined by sales volume. If it takes $30 million in sales volume to cover the fixed costs for a given market and office, and the firm is operating below that threshold, then owners are writing checks to keep the business afloat. "When you combine the production of two brokerages operating at $20 million in sales volume, both of which are losing money, you wind up with a firm doing $40 million, which becomes instantly profitable," says Slusser. This is when a small business merger can make a lot of sense. For now, trade volume in real estate is expected to remain at the current rate for another two to three years. Economists blame the low volume on the extreme rate increases by the Federal Reserve bank, effectively locking consumers into low interest loans that discourage the move-up market. Other influences include higher costs of living, driven by inflation and stagnant wages. The outcome is that brokers who are operating at a loss are facing another four to eight quarters of unprofitability. For those firms, it's time to find a merger partner, whether for a small business merger, a full acquisition, or another type of partnership, so they can move on. Technology Firm Consolidation by Brokerage Compass has achieved one point of differentiation that no other major brokerage can claim. They invested an obscene amount of capital into developing the core technology that is used by Compass agents to service their clients. You can argue all you want about the wisdom of such an investment, or about the quality of the applications. But you cannot dispel the truth that Compass has a proprietary suite of tools for their agents that no other firm has. If you want to use the Compass tech, you need to be a Compass agent. The wisdom of this strategy is not new to real estate. Windermere was among the first firms to set itself apart with technology. If you recall, it was the first major firm to launch map search to consumers at scale, and developed its internal CRM and listing presentation tools. This placed a wall around the technology that required agents to join Windermere or become a franchise to use the technology. A similarly successful but somewhat different model was made popular by Booj. Booj, which stands for "be original or jealous," was a successful technology company that operated under the principle that only one firm in a marketplace would be allowed to offer the technology to their agents. The company was very successful and developed wonderful technology. To the dismay of their brokerage clients, RE/MAX acquired the company. This terminated the exclusiveness of the technology in the marketplace and led to the demise of the products. The sale of Booj to RE/MAX immediately disrupted brokerage firms who were all-in on that technology platform as a differentiator. Their customers felt betrayed, and they learned a deep lesson about partnering with technology providers. The best strategy to create exclusivity when partnering with a technology company is to own the company (potentially through some activity like a small business merger) or to invest enough in the company to offset the disruption caused by an acquisition. It is pretty hard to say how many agents a firm needs to justify owning their own technology. The main denominator is less about the number of agents and more about the income per agent. Keller Williams charges their agents and franchises a technology fee, allowing them to deploy those fees into the development of technology and the training and support. In similarity to Compass, you can argue about the quality of the technology, but there is no argument for the exclusivity of it. If you are not a Keller Williams agent, you can't use it. Regardless, in every brokerage there is a number of agents that justify the firm's investment in owning the core technology that is exclusively provided to their agents. Losses Will Continue to Drive Acquisitions Brokerages on solid financial footing today have a once-in-a-lifetime opportunity for growth. Firms can expand their sales volume through small business mergers by acquiring small firms, and they can can lock in exclusive tools and resources by purchasing and building core technology. You can draw a circle around the top 50 firms in America by transaction volume to target the ones that have the best opportunity in today's market. Historically, real estate brokerages have been more successful at acquiring other firms than acquiring and developing technology, but that is changing. Everything in technology is easier today than it was just five years ago. Databases are cheaper to operate, application development can be done with fewer people, and APIs have smoothed the path to platform development by driving application interoperability. WAV Group exists to help brokerages like yours thrive in challenging markets. If you need help with your acquisition strategy, please contact Victor Lund. If you would like a valuation on your brokerage, please contact George Slusser. If you are struggling with the technology you have today, please reach out to David Gumpper. And if you have a great strategy but are not communicating or marketing it effectively, reach out to Kevin Hawkins or Bondilyn Jolly. To view the original article, visit the WAV Group blog.

Q2 Market Report: Half-empty or Half-full?
With the first half of 2023 behind us and summer in full swing, it's a good time to take stock of the year to date — and strategize to make the most of the year still to come. The numbers — and what they tell us When compared to this time last year, we're continuing to see certain areas trend down, including: A 24.72% decrease in new listings A 11.19% decrease in listings under contract A 22.16% decrease in listings sold But alongside the downturns, we saw an increase of 7.13% in inventory — and a staggering 40.43% increase in off-market listings. Uncertainty, and how it relates to off-market listings There are many reasons that sellers are opting for off-market listings. In 2023, homes are, more often than not, spending more than 40 days on the market — a median number that was at its lowest in America this year in May, at 43 days, and at its highest in January, at 72 days. Alongside the fact that mortgage rates are continuing to surge, sellers might be more interested in gauging interest at a certain price point than they are in the potential of starting a bidding war. Further, while in-person open houses have made their return, digital viewings are here to stay. Sellers might be looking to limit the number of showings that a competitive listing demands. With many working from home — both owners and renters alike — in-person viewings have the potential to be quite disruptive. A combination of high demand and low inventory means that, even despite high mortgage rates, many markets remain competitive — if uncertain. But you can stand out as a trusted advisor to your agents and their clients alike with support from the technology like BrokerMetrics. There's no way to control your market, but with the best insights that data can offer, it's simple to understand how your business fits into the big picture. To view the original article, visit the Lone Wolf blog.

Coldwell Banker Global Luxury's 'The Report' Identifies the 2023 Trends and Opportunity Markets Impacting Global Luxury Real Estate
The Coldwell Banker Global Luxury program released "The Report: 2023 Global Luxury Market Insights," an in-depth analysis of worldwide luxury real estate market trends. The Report reveals the most advantageous areas in the United States prime for purchasing luxury real estate, the most popular cities for secondary luxury home ownership, luxury agent perspectives on pricing trends, the influence of the global community on U.S. real estate and the trends driving luxury consumers, both domestically and internationally. "The Report sheds light on the micro-level factors that are currently impacting the state of the luxury real estate market. As we've seen over the past three years, the core definition of luxury has swiftly changed; ultra-high-net-worth individuals are a driving influence in the market, with this demographic leading the way in luxury home buying. With their well-diversified investment portfolios and assets, this ultra-wealthy consumer will have staying power in the real estate market today and in the years to come," said Liz Gehringer, president of Coldwell Banker Affiliate Business and chief operating officer, Coldwell Banker Real Estate LLC. Key findings featured in The Report: The Opportunity Index The Opportunity Index evaluates and ranks 125 U.S. markets based on buyer and seller opportunities. The Index uncovers the locations that could present the most exciting buying and selling possibilities this spring by looking at supply, demand, inventory levels and pricing, and how each of these areas favors the buyer or the seller. The markets most likely to be the friendliest for buyers: Marco Island, Fla. Palm Beach, Fla. Summit County, Colo. Miami, Fla. Lake Tahoe, Nev. The markets most likely to be the friendliest for sellers: St. Louis, Mo. Hamilton County, Ind. Richmond, Va. Johnson County, Kan. Raleigh-Durham, N.C. Global Luxury Agent Market Perspective Coldwell Banker Global Luxury Property Specialists polled in a special Agent Vision Survey remain upbeat about the current luxury outlook as wealthy consumers continue to flex their spending power, prioritizing financial stability, long-term wealth growth, family, health and wellness. More than half of the Global Luxury Property Specialists surveyed expect 2023 luxury home prices to remain flat or up slightly from 2022. Over half anticipate demand to remain consistent throughout 2023, while nearly 30% believe demand could be stronger by the end of the year. Global Luxury Property Specialists transact in the top 10% of their respective markets. Multiple Homes Are Mainstays for Americans in the U.S. and Abroad The percentage of U.S.-based individuals with a net worth of $5 million or more who own two or more properties grew from 70% in 2021 to 79% in 2022, per Wealth-X. Data from Coldwell Banker's fall 2022 Trend Report backs this claim: 72% of wealthy buyers noted that their future home purchase would be a second residence, vacation home or rental property. Gen-X and millennials are leading the way with their desire to own multiple homes, seeking out hybrid properties as part-time getaways and rentals as part of their wealth building strategy. The top five U.S. metropolitan areas driving secondary-home ownership among individuals with a net worth of $5 million or more, per Wealth-X are: New York City Silicon Valley San Francisco Los Angeles Chicago Wealthy U.S. individuals are not just looking domestically for properties either; the propensity to own a home abroad is on the rise thanks to the strength of the U.S. dollar and rising costs of U.S. living. According to Wealth-X, more than 64,000 overseas properties in 2022 were owned by U.S. consumers with $5 million or more in net worth, up 20% from 2021 and 115% over 2020. In Coldwell Banker's new international survey, conducted by Censuswide, 91% of affluent Americans said they are most likely to own a home overseas. Europe is a big draw for Americans, but emerging markets like Central America and Asia, particularly with younger affluent individuals, are increasingly popular locations. Global Real Estate Influence According to Credit Suisse, the number of global millionaires is at its highest point in history. By 2026, it is estimated that the number of millionaires worldwide will surge by 40%, and one in seven adults will have a net worth of at least $1 million. Major U.S. markets and traditional centers of wealth, like New York and Los Angeles, continue to be a major draw globally for affluent international buyers. Findings from the Coldwell Banker international survey also found that affluent buyers desire to live in locations that are architecturally and culturally diverse, like Chicago, and luxurious resort towns like Aspen. New York is still the number one city globally for high-net-worth primary residents and secondary homeowners. Cities in Asia regained position in the top global cities with primary and secondary homeowners as borders reopened, with Singapore, Beijing and Guangzhou ranking in the top 10, according to Wealth-X. Increased desire for travel, investment opportunities, growing popularity for dual citizenship / "Golden Visas," and favorable tax laws are major factors that are driving the global affluent population to look abroad for their next home purchase. "The List" – What Trends Are Driving the Luxury U.S. Consumer? Property location, home condition and amenities are the highest priorities for the affluent when looking to purchase primary and secondary residences, according to Coldwell Banker Global Luxury Property Specialists. Global Luxury Property Specialists also find that a home with breathtaking views, quality of construction materials and privacy are the top three qualities that their clients look for when defining their dream home. A have-it-all mentality could become a larger consideration in the high-end residential market this year as buyers flex their leverage and become more selective. Home design and style trends are also influencing factors; Global Luxury Property Specialists noted that open floor plans, bespoke architectural elements and neutral color palettes will have staying power among wealthy individuals. Tech-friendly homes are also top-of-mind for affluent buyers, with home automation systems, energy efficient appliances and electric vehicle charging stations ranking as the top three most valuable tech amenities.

Which Top Real Estate Technology Trends Should You Watch for in 2023?
There's no doubt about it: it's been a wild couple of years for the real estate industry! We don't have a crystal ball, but we do have our finger on the pulse of the industry and a robust research and development team that keeps a close eye on trends. We've made some predictions about what brokers can expect both in 2023 and beyond. From the unprecedented boom of the past couple of years to the abrupt slowdown brought on by higher interest rates in 2022, things have been a little unpredictable. The latest from the Federal Reserve is that interest rate hikes are likely to slow down by the end of the year, which is good news for the real estate industry going into 2023. As the leading providers of proptech for brokerages around North America, we know technology is one of the best ways to withstand volatility and work smarter, no matter what the market is doing. Here are the five tech trends we think will have the biggest impact on the next year. Increased automation of key real estate workflows Everything about real estate is complex. The number of processes and tasks that brokers, admins, and agents need to keep track of is, frankly, staggering. Real estate is also a highly regulated industry, so workflows and processes are generally set and don't change very often. This means they're highly automatable. Brokerages that haven't yet automated their processes are going to finally jump on the bandwagon in the coming year, while tech-savvy brokerages are going to find new, innovative ways to automate more things. One area where automation is already standard, eSignatures, is also the broker-provided technology that agents deemed the most valuable in the NAR 2022 Technology Survey. Customer relationship management is another area where a little automation can have a big impact. Augmented reality for enhancing the sales process The advent of virtual tours revolutionized home buying and selling, and these days, most homebuyers have seen at least one virtual tour. Augmented reality has the potential to enhance the virtual buying experience even further. With augmented reality, agents could use their phones to not just take listing photos, but to scan and measure rooms and build more immersive virtual tours. Prospective buyers could use their phones to view a room and replace the current décor and furniture (or lack thereof) with their own, giving them a glimpse of what their new home might look like. It could also provide more accessible and user-friendly information about a listing without seeing it in person. As processing power and network speeds increase, these technologies will continue to mature. Novel uses of artificial intelligence As AI advances, it has the potential to revolutionize the real estate industry even further while also boosting efficiency and lowering costs. For example, we've discussed how brokers can use AI to turn their treasure troves of data into unparalleled, proprietary insights: Better leads More accurate CMAs And more And this is just one of the areas where artificial intelligence can be used. Others include: Enhancing listing photos Stronger, more targeted marketing Estimating sales prices more accurately for smoother sales The better AI gets, the more ways inventive proptech companies will find to expand its use in the industry. Cloud infrastructure The cloud is getting faster and more powerful every day. The advantages of switching to the cloud are fast eclipsing any potential drawbacks. The cloud makes it easier to onboard new technology and scale as your business grows while boosting security and saving money. It's a painless way to be more competitive while staying relevant in today's technological landscape. Metaverse: next level virtual reality in real estate We've talked about the metaverse and real estate before, and the topic of virtual real estate is becoming increasingly popular. Virtual assets are just one potential avenue for real estate in the metaverse. Others include: Immersive property tours like nothing we've ever seen Modelling to help with everything from building to interior design Virtual industry conferences And more The metaverse is still in its infancy, and while it might not start affecting how we live and transact in 2023, big changes are likely not too far away. To view the original article, visit the Constellation1 blog.

[Podcast] Market Trends, Supporting Agents and Luxury Real Estate with Damon Knox of Coldwell Banker Global Luxury Brokerage
In this episode, RentSpree CEO Michael Lucarelli is joined by Damon Knox, a long-time successful agent whose career has culminated in being elected as the President of the San Francisco Association of REALTORS while also serving as the Assistant Branch Manager at Coldwell Banker Global Luxury Brokerage. Damon dives into his real estate journey and lays out the keys to success to build a strong client base and how that experience translated into also serving the luxury end of the business. Also, with the current market trends, Damon offers advice and insights into how to navigate rising interest rates and low inventory. Furthermore, he looks at how brokerages should work to be more modern to support today's real estate agent.    

Shock Is Over for BRN Brokers
The Broker Resource Network's Leadership Roundtable had their summit yesterday to discuss key business themes impacting our industry. The biggest news is that adjusting to the shock of stagflation is behind them. During the past six months, many brokers have been laser-focused on cost containment, and some on cost cutting. For those firms who had gotten out over their skis (i.e., spent too much) during the pre-recessionary real estate boom, drawing back expenses and rightsizing staff was important. Most Broker Resource Network (BRN) firms reported that they did not need to right-size because they were never wrong-sized. The general outlook is that companies should strike out their financial performance numbers of 2020 and 2021 and compare today's financials with 2019. When you take that perspective, things are not that bad. Mergers and acquisitions are expected to outpace recruiting and market share gains in driving growth. What Happens Next? The Federal Reserve Bank is in a weird place. If they increase interest rates again (which they are likely to do today), it will further dampen the housing market. Interest rates have doubled since the pandemic, which impacts first-time homebuyers and low-income homebuyers the most. There are early signs of struggle by homeowners including higher rates of late mortgage payments and late utility payments. A significant trend across most American cities has been the activity of investors in the marketplace, therefore making the leap from renting into owning more difficult and driving up housing costs for the lower and middle class. One broker shared that in the middle market of the NFL city where they operate, and a median home price of $250k to $400k, more than 40% of homes are being purchased by real estate investment trusts. The ability by investors to depreciate property acquisitions provided them with a tax-adjusted acquisition cost advantage. The balancing act by the Federal Reserve Bank pits curbing inflation with the creation of other lasting problems. The two biggest problems caused by rapid interest hikes are the recession and the trade deficit caused by the high value of the U.S. dollar. The recession is obvious and easily felt by brokers and agents. Consumer spending and broker spending has become very cautious, thus slowing home transactions and price increases. More consumers are having trouble paying their bills. All U.S. companies have put spending into the caution zone. The bigger issue is the incredible strength of the U.S. dollar – which has it on par with Europe. The dollar is up about 13.5% this year against a basket of peers, on pace for its strongest year in nearly 40 years, while the Euro has been crushed about 12% to below parity, a level untouched in two decades. It creates a great environment for Americans to travel abroad, but sets up a trade problem globally that will hit U.S. producers of exports. We have not seen stagflation (inflation coupled with a recession) since the Nixon administration. This is causing a lot of uncertainty and volativity in the stock market and in the minds of consumers. It is hard to say which way we will come out of this. Back to Basics Brokers offered the refreshing focus on getting back to basics. Call nights are back at some firms and one inspired broker is creating gift baskets for agents to drop off at their customers' homes. The business is becoming normal again with agents more focused on maintaining customer relationships through use and adoption of their CRM, along with other traditional network marketing tactics. A key focus is on the roll out and adoption of customer-for-life continuity programs that position real estate professionals as advisors, not just transaction specialists. Broker Resource Network Leadership Roundtable The Leadership Roundtable is a volunteer leadership group of the BRN that meets bi-monthly to guide the direction of the BRN in its "Broker First" mission. They set the tone of advocacy and research which benefits brokers. Attendees of this roundtable included: Helen Hanna Casey, Howard Hanna; Steve Hayes, Latter & Blum; Kevin Levent, BHGRE Metro Brokers; Eb Moore, Wilkinson ERA Real Estate; Gretchen Rosenberg, Kentwood Real Estate; Jim Fite, Century 21 Judge Fite Company; Michael Barbaro, redwith; PJ Louis, Century 21 All Points; and Wendy Forsythe, Fathom Realty. About the Broker Resource Network The Broker Resource Network subscription includes exclusive access to private discussions with other brokerage leaders through "Peer Advisor Groups," which offer the broadest base of information and sharing among brokerage leaders. Participants also receive at least one resource each week that is focused solely on company leaders, such as articles, research, analysis, benchmarking, webinars and newsletters. Subscriptions to the BRN are open to all brokerage owners and executives in the United States and Canada through an annual fee which includes direct access for up to six leaders from a bona fide real estate firm, including recruiting, marketing and technology leaders. Technology partners focused on the brokerage segment to provide foundational support for the organization. Brokerage applications are submitted online through a secure and confidential application found here. To view the original article, visit the WAV Group blog.

Get Ready: Real Estate is Coming to the Metaverse
You've undoubtedly been hearing a lot about the metaverse, especially since Facebook rebranded as Meta in October 2021. In this blog post, we're talking all things metaverse and real estate and answering your questions about this exciting but unfamiliar technology. What Is the Metaverse? In the simplest terms, the metaverse is a digital environment that's like the physical environment we live in now. It will most likely be a place you can explore just like our current universe: you'll be able to meet friends at your favorite hangout spot, go "traveling," shop, look at art, go to concerts, and more. In more complicated terms, what the metaverse really is hasn't been defined yet. According to Wired magazine, talking about the metaverse today is like discussing what the "internet" was in the 1970s when the building blocks for a new form of communication were being built, but no one really knew what that form of communication would look like in reality. The same is true of the metaverse. What space will it occupy? Where will it be stored? Who will control it? These are all questions we don't have answers to yet. So, stay tuned! What Technologies Are Used for the Metaverse? The building blocks of the metaverse are evolving and maturing. As technology advances, so too will these building blocks' applications and usability in the metaverse, and new technologies will emerge. The existing building blocks include: Virtual reality Augmented reality Cryptocurrencies Virtual Reality in the Metaverse Virtual reality (VR) is a computer-generated 3D environment users can explore and interact with. They usually interact with VR by using wearable technology, like a headset and headphones, that provides an immersive VR experience. They can also use controllers to help manipulate the environment they're exploring. The most common VR applications currently relate to video games, but the technology is finding applications in all sorts of industries where exploring a virtual environment could be useful, from virtual school field trips at world-famous museums to applications that allow architects to "see" the inside of a building they've designed before it's even been built. Augmented Reality in the Metaverse In contrast to the immersive world that is VR, augmented reality (AR) brings aspects of the digital world into the physical one. It might allow you to see something that isn't really there or provide extra information about something you actually can see. The viral game Pokémon Go is a popular example, while other new applications include using an app to see how a piece of furniture might look in your home or testing makeup on your face without going to the store. Cryptocurrencies in the Metaverse Experts are predicting transactions in the metaverse will be conducted using cryptocurrency. You've probably already heard of the most popular cryptocurrencies: Bitcoin and Ethereum. Perhaps you've even purchased some. Cryptocurrencies are virtual currencies (they aren't tied to physical assets, like gold) that exist on the blockchain, a distributed ledger technology. They're not maintained or controlled by central authorities like governments or banks. What Will People Do in the Metaverse? The short answer is…we're still figuring it out! Megan Thee Stallion, one of the most popular musical artists today, recently announced an entirely virtual concert tour, which suggests there is a future (and big market) for entertainment in the metaverse. Millions of people already gather in virtual spaces to play games like Fortnite. Companies and investors are betting that consumers will be spending a lot of time in the metaverse one day, and they're starting to stake their claim. In 2021, an individual famously paid $650,000 for a virtual yacht. Does this mean that consumers might one day buy houses in the metaverse? Maybe. There are already companies promising to sell or lease virtual real estate, and one digital parcel in Decentraland already sold for $2.5 million. To be continued! What Does a Brokerage Like Mine Have to Do About the Metaverse? Do you need to start making plans to open your own virtual brokerage in the metaverse? Not just yet. When you do, you can count on us to let you know. Experts agree that what we will all eventually know and recognize as "the metaverse" is still many years and billions of dollars of investment away. So, for now, you can rest easy. What Could Real Estate in the Metaverse Look Like? Even though you don't need to take action right now, you might be thinking what some of the applications of the metaverse might be for real estate. Let's let our imagination run wild and explore some possibilities together: Showings in the Metaverse During the pandemic, virtual tours took over to keep consumers and agents safe. But picture, one day, visiting a digital twin of a property you'd like to buy. You can walk around it exactly like you would if you were there, but in a virtual space. You can redecorate it in just a few clicks with renderings of your actual furniture to see how it'll look. You can put a virtual addition on it to see what it would look like. All from your agent's office (or your own VR suite at home). This could be particularly useful in the luxury market, not only because high net worth individuals might be likelier to be early adopters of the technology, but they're often touring homes thousands of miles away from where they call home. Closing in the Metaverse Imagine meeting with your loan officer, title company, notary, attorney, and any other stakeholders involved in your transaction in a virtual meeting room in the metaverse to complete all closing formalities in a virtual space? You could legally sign all closing documents, meet with all the parties involved, and complete the transaction from anywhere. Augmented Reality Home Searches Visualize having glasses you could wear that would show you which homes are for sale in a given neighborhood and display key information about them? Some apps are already providing features like this, and more are on the way. AR will make it even easier for homebuyers to find the information they need when they need it to find the right property to put an offer on. To view the original article, visit the Constellation1 blog.

Real Estate Brokers Identify Potential Trends in Spring Selling Season
Better Homes and Gardens Real Estate LLC is thinking spring -- spring selling season, that is. A recent roundtable discussion with several Better Homes and Gardens Real Estate brokers across the country revealed that historic seasonality patterns have been affected by today's market conditions. Most notably, record low inventory levels could provide to have an impact on this year's spring selling season. "Real estate professionals are highly adaptable and the last two years of the COVID-19 pandemic have proven that our industry is resilient in the face of change," said Sherry Chris, President and CEO, Better Homes and Gardens® Real Estate. "As we enter the third spring selling season since COVID-19 emerged, the BHGRE® brand wanted to explore what our affiliates were experiencing in different parts of the country. The broker panel observed that strict seasonality is seeing signs of change. However, it is important to understand all of the underlying factors contributing to this significant shift in real estate market dynamics. What is clear is that a lack of inventory stemming from stalled new development is setting the industry up for continued disruption. Identifying and overcoming barriers to building new homes will be critical in meeting the incredible demand for housing that now exists in our country. In the short term, buyers and sellers can follow the advice of their agents on how to best position themselves for success." Timing Trends According to the brokers interviewed, the timing of the spring selling season varies. In Northern New England, the spring selling season typically kicks off in March, but with only 30 days of supply, there aren't enough homes to create a seasonal sales "spike" this year. People also appear to be waiting out January and February to see COVID-19 cases go down to reduce potential exposure. In Portland, Oregon, spring selling season usually starts at the beginning of the year, although it was observed that 2022 activity was stalled by the omicron variant surge. Brokers are seeing some traces of seasonality, but it's not full-blown. People will move as soon as the opportunity presents itself, which means for sellers, there's never a bad time to sell anymore. "With just one week of inventory, an uptick in seasonal activity is not possible here in Portland," said Danielle Bade, principal broker and vice president, Better Homes and Gardens Real Estate Realty Partners and Better Homes and Gardens Real Estate Northwest Living. "Homes sell as soon as they come on the market. People aren't waiting for a traditional season to enter the market." "Despite having low inventory in our market, we may still see a surge across Sonoma and Lake County, California as some real estate professionals push their sellers to bring their homes onto the market to get the most value," noted Randy Coffman, president, Better Homes and Gardens Real Estate Wine Country Group in Northern California. Pricing Fluctuations According to the brokers interviewed, in Northern New England, prices are still considered moderate compared to urban areas. However, they are increasing, which puts pressure on local residents looking to buy in-market. In Lehigh Valley, Pa., which sits between New York City and Philadelphia, home prices are lower compared to the major cities. In Northern California, prices are flattening out somewhat, but are still higher than expected due to low inventory. In Portland, prices are not expected to come down this year. Despite double-digit price increases, the brokers interviewed are confident this is not a real estate bubble. Appreciation rates could moderate a bit, but prices won't come down. Panelists reported they are staying attuned to consumer tolerance for rising prices, and seller greed, which could cool the market. "This is an entirely different dynamic from 2008, which was driven by lax lending," said Chris Masiello, CEO of Better Homes and Gardens Real Estate The Masiello Group in Northern New England. "This is a supply and demand issue that is being guided by demographics: millennials and baby boomers are orbiting the market for the same housing stock. These first-time homebuyers and downsizing buyers are vying for the same properties." "There is a potential for prices to plateau and then return to a more normal appreciation rate," said Jack Gross, owner of Better Homes and Gardens Real Estate Cassidon Realty in Lehigh Valley, Pa. "We might also see buyer frustration cause people to leave the market because they are tired of not getting a home. But consumer confidence in the housing market is high, which makes them open to overpaying." "We are starting to see home price increases flatten out somewhat, but it is still higher than expected due to the low inventory," shared Randy Coffman, president, Better Homes and Gardens Real Estate Wine Country Group in Northern California. Shifts in Buyer Mindsets Brokers interviewed are seeing an increasing sense of urgency from consumers to "win" the home, bidding up the price beyond normal appreciation rates. This means they are paying now for what a house could be worth in two years. As a result, the phrasing has changed from "I bought a home" to "I won the bid." And for those unable to "win," buyer fatigue has kept people out of the market in recent months. Another shift noticed by the brokers who participated in the roundtable is that people are not interested in homes requiring significant sweat equity. Instead, they are more focused on their careers and don't want to invest significant time or effort time in fixing up an outdated house. Further, the brokers observed that living with COVID-19 has worn down the psyche. Depending on the region, consumers are either tired of the coronavirus and moving forward with plans or still in a holding pattern created by health anxiety. "Despite home prices increasing about 30% in Central Florida, the market is not slowing down, although the lack of inventory is discouraging for buyers, particularly first-time buyers who are contending with rising rents," said Dana Hall-Bradley, Broker/Owner, Better Homes and Gardens Real Estate Fine Living in Celebration, Fla. Seller Mindset Participating brokers report that current inventory conditions are giving new meaning to the term "seller's market." In some cases, sellers are becoming irrational on pricing, insisting on list prices well above current market values. In other instances, sellers are getting more cautious with pricing too high. However, brokers report that homes are still getting multiple offers over list price when priced right. According to Chris Masiello, CEO of Better Homes and Gardens Real Estate The Masiello Group, "For most sellers, the biggest deterrent is 'Where will I go?'" Brokers shared that people in Portland are going to Arizona for some sun, often retiring a few years earlier than planned. Urban dwellers in California are moving north, while people in Pennsylvania are heading south to Florida. People in New England are selling their family homes and taking up primary residence in their second or summer home until a suitable primary home becomes available. Others are downsizing to a tiny home or RV. "We are hearing more from sellers that it's not always about the highest price – offers with contingencies are less desirable," said Danielle Bade, principal broker and vice president, Better Homes and Gardens Real Estate Realty Partners and Better Homes and Gardens Real Estate Northwest Living. Interest Rates The brokers interviewed observed that the increase in interest rates from 3.5% to 4% is not a real financial driver. They noted that they do not envision it having a substantial negative impact on the market. It may, however, be an emotional one as people get off the fence and try to beat the market. Interestingly, the participating brokers are noticing a shift in the historical relationship between inflation and interest rates, which is now inverted. "Buyers may initially see the rates as higher, but remember — historically, they are still low, and there is bound to be a little give and take," said Randy Coffman, president, Better Homes and Gardens Real Estate Wine Country Group in Northern California. "Prices go down a little; rates go up. It evens out." Migration According to NAR, as more people can work from home, city dwellers are moving to the suburbs. Participating brokers report that those who come from New York City can sell a $2.5M townhome and move into a $600,000 4,000 square foot Colonial in Lehigh Valley, Pa. Similarly, people who move to rural Vermont from Manhattan still earn city wages. As a result of migration, primary markets are becoming saturated, making secondary markets the main focus, and tertiary markets secondary. As inbound moves from higher-priced markets drive up prices, the dramatic double-digit price increases serve to rise all tides. The brokers interviewed believe that local residents get an economic lift as more people migrate to the area, bringing their city spending habits and salaries, likely creating more job opportunities in the next 12-18 months. Brokers also report seeing a shift in priorities as people are no longer tied to a geographic area for their job. "We are seeing heavy migration patterns from the metro DC/Maryland regions, along the coastal corridor to Northern New England, including Massachusetts, New Hampshire and Vermont," remarked Chris Masiello, CEO of Better Homes and Gardens Real Estate The Masiello Group. "In lesser populated, rural areas, people are now buying property and land that hasn't transferred in 30 years or more, which is creating a lot of title issues." New Construction According to participating brokers, permit logjams, supply chain issues, and lack of builder confidence have created a dire shortage of new homes. COVID notwithstanding, significantly fewer new homes are being built while populations are increasing. For example, between 1950 and 2010, the number of new homes built in each decade ranged from 10 million to 14.5 million. But from 2010 to 2020, just 7 million homes were built, while the number of new households formed during that same time period exceeded 10 million. The brokers interviewed advise that communities need to decide how to help the new inventory issue, which requires cooperation at the local level. "Overcoming the inventory shortage will be the responsibility of local planning boards. They need to assess the needs and act. We are not seeing the supply chain issue or labor shortages as bad as they were last year. There is so much cash in the market now just looking for a place to go to work to get a return," according to Chris Masiello, CEO of Better Homes and Gardens Real Estate The Masiello Group. "Developers got caught in 2008, so they are not eager to jump back in," said Jack Gross, owner, Better Homes and Gardens Real Estate Cassidon Realty. "In Lehigh Valley, it takes 3-5 years to approve a subdivision, which is a significant deterrent when you can get an immediate return in the stock market." Tips for Sellers and Buyers According to the panel of BHGRE® brokers, here are a few suggestions and tips that real estate professionals can share with buyers and sellers in today's dynamic market. Tips for Buyers Get preapproved. Have a substantial down payment saved. If you can pay cash, do so and refinance later. Be flexible on the closing date. Always make your best offer first and resist the temptation to hold back your effort upfront. Be willing to waive the inspection. Have the means to make an "additional down payment" if the appraisal comes in low. Line up short-term interim housing between sales to put yourself in a better position to compete in a multiple offer situation. Tips for Sellers Even in today's tight market, it is still important to put your best foot forward, so don't skimp on staging, home repairs and cleanliness. Prepare your home for the market by hiring a professional cleaning crew and professional handyman/repair service to perform paint touch-ups, fixture upgrades, etc. This will encourage buyers to make their very best offers and result in fewer days on the market. Offering a home warranty can help encourage buyers to waive their inspection. Ensure all potential buyers are financially qualified. Consider the terms offered as just as critical as the price. A cash offer with fewer contingencies may be better than a higher offer with many contingencies.

How Your Brokerage Can Leverage 3 Tech Trends Driving Innovation in Real Estate
Three major tech trends are driving real estate innovation in 2022. While these trends aren't exactly new, real estate companies are starting to harness their power more effectively and achieving transformative results. Learn more about these trends below. Open software architecture Traditionally, software companies have walled off their applications, trying to be the one and only solution for everything. This made more sense in the era of server-based computing. But in the era of the cloud, this has proven to be an outdated and inefficient way to run things, especially since no one company can be the expert in everything. With open architecture, APIs (application programming interfaces) allow different applications to integrate and communicate seamlessly, without sacrificing security or robustness. Open architecture promotes creativity, collaboration, and flexibility, allowing companies to tailor their tech stacks to their business, not the other way around. You can read more about open software architecture in our post about the collaborative future of real estate technology. Data reservoirs or data lakes The idea of data reservoirs is nothing new, but the availability of cost-effective cloud computing has made maintaining one easier and less expensive than ever. As a result, more businesses are jumping on board. A data reservoir, or data lake, is a centralized repository of unstructured data (think of all your past sales data, stretching back decades). In the past, you might not have had a specific use for this data, but in fact, this information is true technology gold! Why do you need a data lake? Simply put, it's good for business. According to an Aberdeen survey cited by Amazon Web Services, businesses that can successfully generate value from their data outperform their peers in organic growth by 9% on average. Real estate runs on data, and data is very powerful, especially when it's unique to your brokerage. Data lakes are a relatively simple way to use data you already have and pair it with other data types from public records or your MLS to gain valuable business insights. The right partner can help you find ways to do just that. AI-powered analytics Twenty years ago, artificial intelligence (AI) made us think of The Matrix, robot armies, or facial recognition technology in a spy movie. Not anymore. In fact, the availability and low cost of AI-powered analytics are one of the most incredible (and valuable) business developments of the 21st century. With AI, you can take your data lake (your own data) and complement it with data from other sources: Your CRM Website Public records MLSs Other available data sources (free or paid) The resulting data insights will take your comparative market analyses to the next level, help determine the best agent for a particular lead, and even figure out which past customers are likely to sell before they even know themselves, so you can target your marketing to earn their business early. The future applications of AI in real estate are endless and will only get more powerful and advanced. Make marketing technology drive revenue Technology is the key to working smarter, not harder. When you're building your tech stack, ensuring the solutions you choose create a real impact, both on your team and on your customers, is crucial for picking the right ones. Constellation1 is your source for real estate technology. If you're looking for a true partner with the expertise, flexibility, and creativity to put together the perfect tech stack for your business, we're here to help. We work with your team to tailor your tech to your business and your future goals, putting your team on the path to success. For even more tech insights from three real estate industry leaders, you can watch the recap of our Inman Connect event below. To view the original article, visit the Constellation1 blog.

Bisnow Ties the Future of Selling Real Estate to Blockchain and NFTs
Patrick Sisson of Bisnow, a national business publication with regional offices in major cities across the nation, is recognizing the "rampant hype around NFTs, fueled ... cryptocurrency billionaires." WAV Group was quoted in the article saying: Victor Lund, founder of California-based WAV Group, an advisory firm that focuses on new technologies and NFTs, said he believes real estate NFTs are a specialty that will quickly evolve, especially because of the increased interest in the space last year among developers, private equity and banks. Cryptocurrency speculators, investors and acolytes want to eventually find a safe haven for profits and transfer vast sums of digital wealth into something more tangible. Lund said there is roughly $2 trillion invested in crypto today and an estimated $300B in NFTs, all of which, he said, is essentially "cash on the sidelines." The problem with cryptocurrencies is that they do not have much utility in real life today; it's like Monopoly money. Unless you are playing the game of Monopoly with a group of players who agree to the value of it, it's useless. The big news is that so many people, including Wall Street investment banks, are holding this currency and generating an appetite to discover new ways to diversify out of the currency and into other assets. The only way we can explain this is by drawing the parallel to holding cash in your investment account rather than stock. As the article mentions, there is over $2T in crypto, and only a small amount of that is invested. The hottest investments in crypto have been focused on digital art. Remember, Web3 is all about creators. Musicians and digital artists are discovering a bountiful wellspring of collectors who are willing to trade crypto for art. Keep your eyes peeled for information on this topic. 2022 will be a big year for Web3 – especially if retailers and their supply chain partners begin trading in crypto. If I can walk into a store (online or in real life) and swipe my Venmo credit card and pay in crypto, it will provide a lot of utility to crypto. Try doing that with your Monopoly money. Moreover, if Target is able to pay manufacturers in China for products in crypto and avoid currency fluctuations and possible tariffs, our economic foundation would shake. As for NFTs in real estate, that is happening, albeit at a slow pace. To view the original article, visit the WAV Group blog.

Sotheby's 2022 Luxury Outlook Report Reveals Return of International Buyer, Hybrid Work Model Fuels Real Estate Investment
Sotheby's International Realty released its 2022 Luxury Outlook report, which identifies the trends likely to shape the world's prime housing markets in the year ahead. The comprehensive report offers insight into the high-end real estate industry as the starts-and-stops of the pandemic's reopening fueled even stronger demand and inventory struggled to keep pace. The global report reveals that relief from the market frenzy may not happen quickly as prices are expected to rise in 2022. In addition, a shift to a hybrid work model is fueling more buyers to invest in real estate and seek larger homes that can accommodate remote work while remaining within commuting distance. "Once again, Sotheby's International Realty remains a trusted resource for buyers and sellers looking to navigate the luxury real estate market," said Bradley Nelson, chief marketing officer for Sotheby's International Realty. "It was important for us to offer our perspective on the trends ahead as luxury real estate remains a trusted investment amid relatively low interest rates and inflation. Now in its second year, the 2022 Luxury Outlook report offers expert insight following last year's frenzied housing market and what buyers can expect in the coming year as pent-up demand from international buyers is expected to increase." The Sotheby's International Realty 2022 Luxury Outlook report was compiled by surveying Sotheby's International Realty agents around the world who transact in the US$10M+ price category. This information was complemented by gathering supporting data from other leading industry experts, including UBS Wealth Management; Henley & Partners, a global citizenship and residence advisory firm; the National Association of Realtors; in addition to art and luxury experts at Sotheby's, the famed auction house, to round out luxury trends in the year to come. Key findings featured in the report include: 2022 is likely to be the year of the international buyer as borders open and vaccinations and boosters roll out Nearly half of respondents agree that a rise in interest rates might affect the market In North America, millennials and Gen Xers are expected to make up the majority of luxury-home sales in the coming year Between 2018-2042, nearly US$70 trillion will be passed down from older generations and millennials will continue to use their share for real estate, according to Cerulli Associates In the U.S., price appreciation of second homes is expected to continue even after the number of transactions slowed due to limited inventory The most important amenities for today's luxury buyers are a garage with storage, first-floor full bathroom, eat-in kitchen, and deluxe primary bedroom suite "Following another historic year in real estate, Sotheby's International Realty agents around the world continue to have their finger on the pulse on industry trends and market acuity," said Philip White, president and chief executive officer of Sotheby's International Realty. "Luxury Outlook heavily relies on the expertise of our network spanning 77 countries and territories to provide on-the-ground insight on the biggest stories in 2021, from the resurgence of urban cities to the role of cryptocurrency, and what it means for buyers and sellers in the short and long term." Click here to read the complete report.

NFT Art Traded for Home in Real Life
NFTs are tokens that allow you to own digital assets. In this example, I am going to be talking about digital art NFTs that are owned on the blockchain. One of the most famous of all NFT projects is arguably Bored Ape Yacht Club (a.k.a. BAYC, which also includes Mutant Ape Yacht Club and Bored Ape Kennel Club). These funky digital drawings sell for luxury art prices. Justin Bieber just purchased one for USD$450k; many believe that these pieces of art will hit $2 million by this summer. In a post on Twitter today, one of the better known artists in the space, @FVCKRENDER, a rare owner of four of these highly desirable pieces of art, is offering to trade them for a home in Vancouver. Well, hey, the Vancouver real estate market is hot and growing at double-digit percentages year after year—but Bored Apes are growing in value by triple digit percentages every quarter with no ceiling in sight. This exposes a problem with investments in Crypto and NFTs—how do you get your money out? I do not know this owner's story or what they purchased these for (side note: you can check this on the blockchain) or how much equity he has in the art, but this @FVCKRENDER clearly needs a home in real life. If this person minted these Apes, they were in at an initial price of $190. Imagine creating something that starts around that price and watch it grow to what it has become today—and they just continue to increase in value. WAV Group has been entrenched in researching the NFT ecosystem and has already initiated its first NFT project, set to launch in Q1 2022. There is no greater success story to understanding NFTs than that of BAYC. All of the 22,000+ owners of these pieces are part of a pretty small club. This club includes celebrities like Eminem, Jimmy Fallon, Rich the Kid, Steve Aoki, Steph Curry, Snoop Dog, Justin Bieber and more. The lowest price for an NFT in the Bored Ape family (at the time of this article) ranges from $26,000 to over $450K. A key feature of BAYC utility is the participation in their online community and gated Web3 experiences—a lot like a social club. A way to understand this is to think about luxury communities or, in this case, metahumans who are building relationships in a digital world. Huge brands are doing NFT collaborations with BAYC owners. In many cases, BAYC holders are gifted NFTs in exchange for helping to promote a new NFT drop. This social equity has been built from the BAYC value and hype. Some BAYC owners have literally become major influencers in the NFT space. If they give a shout out for a new NFT drop, their influence can move the needle on the promotion of the NFT and speculators will drive up the value of the new release. The success of BAYC has also translated into very cool IRL events (they actually rented a huge yacht in NYC for a party with BAYC holders). For example, Snoop may have a meet-up that he sponsors in L.A. for BAYC owners. They stream the meet up to Snoop's gallery in The Sand Box metaverse where Snoop has a digital twin of his real-life home. This is called a "gated experience" where only members of Snoop's metaverse can digitally join the party. What I am explaining here is something called the Utility of an NFT. NFT owners are offered perks in real life, or sometimes gifts. I had a hard time understanding Web3 out of the gate, but our research into the space and our experience launching our first NFT has become a bit of a rabbit hole of learning. If Web 1.0 was about brands shouting at consumers with information, Web 2.0 was about brands having an open dialog and interacting with consumers. Web3 is a shift to privacy, security and tight-knit digital communities that mirror interests, giving brands full ownership of the digital experience. We are receiving a lot of interest in a webinar to help people better understand this space. Keep an eye on our blog, newsletter and socials for an upcoming time and date. To view the original article, visit the WAV Group blog.

Real Estate Digital Marketing Trends that Will Make It to 2022
While there is still time for surprises, the end of the year is an excellent time for all real estate companies to review their performance, analyze business strategies, and consider the best practices, real estate digital marketing trends they can adopt in the following year. Every year, we encounter new digital trends that create the groundwork for the future of digital marketing, the real estate industry, and the world at large. Yet, even a challenging year like 2021 was more consistent and predictable than 2020. For example, the first few months of the year saw the rise of TikTok, which has now become the most popular social media platform for Gen Z users, NFTs, and cryptos making waves in finance and, of course, Facebook changing its name to Meta. Overall, many interesting digital innovations affect how we connect with our audience. Read on for digital marketing trends that will most likely make it to 2022. Top Real Estate Digital Marketing Trends in 2022 More Online Events With online events such as webinars, you get the chance to speak directly to your audience and gather vital information about them. These online events are more about creating a long-term engagement with clients and potential customers than generating income short term. After gaining valuable information at a brand's event, a customer is most likely to refer back to that brand when it comes to making a purchase decision in the future. A Continuous Rise in AI The rise of artificial intelligence in digital marketing will continue to gain momentum. Real estate businesses that are not taking advantage of AI in their marketing strategies risk missing out on benefits such as keyword suggestions for better organic search, automatic online traffic reporting, and even projections of consumers' anticipated future purchases. On the other hand, most businesses that automate their marketing generate reasonable ROI within a year. Excellent Customer Service As the digital ecosystem evolves, customers are getting pickier about what they consume, and as a result, their expectations are high. We're witnessing a significant shift in perceptions of what marketing is. It is no longer necessary to persuade individuals to buy from or work with your company. Instead, the focus is on creating exceptional customer experiences that keep people coming back. Video Marketing Videos will account for 82 percent of all online traffic by 2022, according to a Cisco study published in 2022. Videos are 53 times more likely to earn first-page SERP ranks than other SEO strategies. In addition, 84% of consumers today say that seeing a video has led them to make an online purchase. Personalization One of the most effective ways to attract your clients is to tailor your real estate digital marketing to their specific requirements. We can now use data to uncover what keeps them up at night and what messages will resolve their problems. From content to design to product recommendations and everything in between, advances in technology like AI and enhanced data collecting have made hyper-personalization effortless and straightforward. 2022 will see better integration of CRM and CMS to deliver consistent, tailored brand messaging in digital marketing. 2022 Is Almost Here If you haven't started planning your 2022 marketing strategy yet, now is the best time to start. While there is a constant change in marketing trends, you need to know what your audience wants and deliver it to them through regular communication to succeed in your real estate business. To view the original article, visit the Realtyna blog.

How the 'Great Resignation' Is Sparking Real Estate Dreams across America
While homeownership is important to many Americans, they are no longer confined to their previously held beliefs about where home can or has to be. Thanks to the "Great Resignation," the movement of people leaving the workforce during the pandemic, many Americans don't feel tethered to just one place anymore. In fact, 41% of employed Americans would be willing to take a pay cut or accept a new job with a lower salary in order to move to a more affordable location, according to the latest survey from Coldwell Banker Real Estate. Conducted online by The Harris Poll among over 2,000 US adults, this survey reveals that the real estate renaissance means real estate markets across the country are ramping up to welcome all kinds of new residents. Dreaming Becomes Doing Coldwell Banker set out to discover what's on home buyers' and sellers' minds and it turns out that younger generations are more inclined than their older counterparts to live in more affordable locations, even if it means taking a lower salary. Compared with survey data from earlier this year, the brand also found that household sizes are continuing to expand. The "Great Resignation" Is Impacting Home Forty-one percent of employed Americans would be willing to take a pay cut or accept a new job with a lower salary in order to move to a more affordable location. And younger employed Americans are more likely to be willing to do so than their older counterparts – those 18-44 are more likely than those 45-54 to be willing to take a pay cut or accept a new job with a lower salary in order to move to a more affordable location: 18-34 (51%) 35-44 (47%) 45-54 (32%) 55-64 (27%) Budget Friendly Moves Nearly half (46%) of employed Americans who live in the northeast and west regions would be willing to take a pay cut or accept a new job with a lower salary in order to move to a more affordable location. Space to Grow Household sizes are continuing to grow, especially with younger homeowners. Fifty-seven percent of young homeowners (age 18-34) have felt their housing needs impacted by a growing household in October 2021 compared with 50% in February 2021. Where Are They Headed? Americans are chasing the sun as Miami, Florida; Atlanta, Georgia; and Austin, Texas emerged as some of the top locations they would consider relocating. Coldwell Banker affiliated agents are already welcoming new residents in these regions! Welcome to Miami: Nearly a third (31%) of males aged 18-34 would consider moving to Miami. Females aged 18-34 were more likely to consider relocating to Austin among the options listed (21%). For the Sake of the Kids: Miami and Austin also ranked the highest among the options listed in potential relocation for those with children under 18 in the household at 21% and 17%, respectively. Black Americans Are Interested in Atlanta: Twenty-eight percent of Americans who self-identified as Black (not Hispanic) would consider relocating to Atlanta, the highest percentage for Black respondents of any major city surveyed. Americans Aren't Afraid to Sell Their Homes, But They Still Want Help Overall, Americans are still dreaming about the idea of home. They're showing that home can be anywhere as they redefine the American Dream. Chill Out: The home selling process is becoming less intimidating to homeowners. Only 16% of homeowners in October 2021 say an intimidating home selling process would be a concern if they were to list their home today, compared with 20% in June 2021 and 24% in February 2021. Putting Your Listing to Work: Over a third of Americans (34%) would like a program that offers benefits to a seller such as no upfront cost for renovations, instant cash offer or additional listing exposure when looking for a real estate website to use when buying or selling a home. Tech Dreams to Get to Your Destination: The top features homeowners want in a real estate website when buying or selling are a feature that would give them an estimated sale price for their home (39%) and a feature that would let them compare the cost of living in different zip codes (37%). "Our latest survey reveals that young adults no longer feel constrained to living in the same city, even if it means taking a lower salary in exchange for living in a more affordable location," said M. Ryan Gorman, president and CEO, Coldwell Banker Real Estate LLC. "Younger folks may be redefining the American Dream, but one thing remains clear: Americans are still prioritizing homeownership. If you're ready to make those dreams a reality, our Coldwell Banker agents are prepared to guide you home, wherever that may be."

Airbnb, Predictive Analytics to Have Large Impact on Real Estate in 2022
Airbnb will leverage the biggest impact on the residential real estate market in 2022, according to Chris Linsell, senior real estate writer for TheClose.com. Linsell shared several technology predictions during a presentation at the 2021 REALTORS Conference & Expo. "Airbnb are not just selling their product to consumers, they are selling to the providers of the product," Linsell said. "They are selling twice without holding their own inventory. This unique model opens up an incredible level of scalability. "Industry analysts predict that Airbnb will increase their inventory by 25% in 2022," he added. "Many of those housing units are going to come from the residential real estate market." Linsell explained that converting more inventory to short-term rentals will likely have a net-negative impact on housing availability and affordability, unless developers work to bring new options to the market specifically to meet these needs. He told the audience that there are several things that Realtors® can do to prepare. "You should become a zoning law expert in your local market, advocate for sensible zoning law changes at the local level, start adjusting your comparative market analyses to account for potential market value via short-term vacation rental income, seek out investor relationships with buyers and explore getting into property management." Linsell also predicted that predictive analytics will be the dominant marketing strategy and the most important lead generation approach of 2022. Predictive analytics takes large data sets and uses them to make predictions about future behavior. "As real estate professionals, we are all trying to figure out exactly who is going to buy and sell," he said. "These data sets are growing very quickly and predictive analytics algorithms are getting smarter." Between 2016 and 2021 in the United States, there was a six-fold increase in the number of real estate leads, but the number of closings only increased marginally, indicating that Realtors® are capturing more leads, but they are less effective. "Predictive analytics cuts through this noise," he said. "It allows us to focus only on the consumers who are most likely to conduct transactions. This becomes a very powerful marketing sword to wield." Linsell warned that leads from predictive analytics marketing are often long-term nurture plays, making it difficult for Realtors® who need more immediate results to find success. "Sometimes predictive analytics will look at someone's behavior and demographics and identify them as a person who is ready to buy or sell before that person even knows they are ready. They are going to get to that place eventually, but we have to be ready to nurture these leads for a little bit longer to get them across the finish line." Linsell provides reviews of predictive analytics companies on TheClose.com. He recommends perfecting your strategies with predictive analytics while the stakes are still low. "Don't go all in on this just yet. Make a nominal investment in it so you can understand its full value proposition. Perfect your marketing strategies and then you can ramp things up in the back half of 2022.

RE/MAX Publishes Findings from Survey on the Future of Real Estate
RE/MAX released survey findings on emerging real estate trends, on both the agent and consumer sides of the transaction, and what they mean for the future of home buying and selling. The survey, which was commissioned by RE/MAX in partnership with its agency of record Camp + King and conducted by leading consumer insights agency Canvas8, explores the cultural context and influential trends set to shape the real estate and housing landscape across the United States and Canada. The methodology included expert interviews, third-party desk research and trend analysis, agent and consumer perspectives, and a survey of 5,000 people in the U.S. and Canada who have been involved in the housing market in the past 12 months or are planning to be in the next 24 months. Key findings include: Virtual Tools are Enabling People to Plan for and Manage Their Next Move Before Setting Foot in a Property For both first-time and experienced home buyers, research is mostly conducted online – long before any viewings take place. Whether through video walk-throughs, exploring a neighborhood on Google Maps, or browsing detailed property descriptions, home buyers and sellers are generally well informed before contacting an agent. 94% of North Americans who are searching for properties use online platforms to do so. 64% of Millennial home buyers have been communicating more virtually with real estate agents due to the pandemic, compared to 44% of Gen Xers and 25% of Baby Boomers. According to The National Association of Realtors (NAR), across the U.S., 70% of buyers and 67% of sellers felt comfortable conducting real estate business on a computer, including reviewing and signing documents electronically. On-the-Ground Expertise Cannot Be Replicated Digitally The growing presence of technology in the home buying and selling journey in no way diminishes the essential role agents play in the process. Home buyers and sellers recognize the value of a real estate agent and the benefits real-life interactions add in one of the most complex financial transactions they will ever make. Technology streamlines the overall process, but agents provide essential expertise to their clients – understanding the process, encouraging action, providing financial guidance, and marketing a home. 21% of North Americans who are selling their home want their agents to provide more value by helping them understand the process as a whole. Across all generations, consumers in both the U.S. and Canada rank trust and familiarity with an agent as the most important factor when choosing an agent. Trust, Familiarity, and Ease of Communication are the More Important Traits of Agents to Consumers at the Crucial Stages of the Home Buying and Selling Journey With the scale of such an investment top of mind for most consumers, the personalized support offered by an agent remains fundamental to the key moments in the journey (pricing, negotiating, and closing) as people seek out the extra level of attention and human connection that they can provide. 61% of survey respondents indicated trust and familiarity would increase in importance when choosing an agent in the next two years. 60% cited ease of contact and prompt responses and 59% said online reviews would increase in importance. Regarding preferences for connecting with real estate agents, 71% of survey respondents indicated they'd prefer a phone call, followed by text and email at 62% and 61% respectively. "The big takeaway of this survey is that skilled, experienced real estate agents are the key to consumers achieving their real estate goals," said RE/MAX, LLC President Nick Bailey. "Last year, consumers had plenty of time to compile their list of what they want in their next home, and the most successful agents will be skilled at helping buyers find a home that either checks all of the boxes or can be updated to do so. Whether it's helping sellers price their home strategically or helping buyers win a competitive bidding war, agents – armed with skills and great technology – provide an invaluable service. And consumers clearly recognize and want that expertise in their corner." The entire "Future of Real Estate Report," which explores consumer's sentiments and values toward buying, owning and selling homes can be found here.

5 Real Estate Trends to Watch Through 2022 (and how to stay on top of them)
The pandemic has created its share of uncertainty in many parts of our lives, but it has, interestingly, made certain that the housing market is hotter than ever. Real estate market shifts are ever evolving, and it's not easy to stay on top of it all. As we get ready to look into next year, we're diving into what is trending in real estate along with some marketing, back office and accounting, transaction management, and analytic tools you and your agents can use to stay competitive. Uptick for commercial space Residential properties are still flying right off the MLS. But commercial real estate will gradually begin to recover from the pandemic's impact soon and will pack a big punch in the real estate market. So why is this? E-commerce has grown astronomically in the last year and a half, so fulfillment center space is in high demand for both big box and smaller retailers. Companies are also looking for smaller office spaces in response to the move to hybrid/remote work. Whether mortgaged or rented, multifamily units are quickly becoming a long-term choice for people of all ages and incomes. The demand to develop new buildings or repurpose old buildings into multifamily spaces will continue to grow. Also, the medical sector has continued to fare well throughout the pandemic, so many medical companies are looking to expand their offerings, including more outpatient and non-acute settings. Tech-savvy millennial buyers dominate Millennials still represent a large potential pool of first-time homebuyers ready to enter the market this year. They're ending their leases, moving out, and buying homes in large numbers. According to a recent National Association of Realtors report, millennials make up the fastest-growing segment of buyers today. And with the millennial market, comes the natural, high demand for technology in the home buying process. Hopping online or using mobile devices to find, view, and purchase homes is the norm. From engaging in text-based communication with a real estate mobile app like Connectto being able to send over digital forms with eSignature built in—real estate agents must change the way they do their jobs. Plus, agents can also better target potential millennial homebuyers with digital and social media marketing tools like Boost. The bidding wars continue Getting multiple offers for a home before it sells is nothing new in a cutthroat real estate market like this. Fierce competition amid an extremely low inventory of homes will continue to fuel these bidding wars and putting home prices to new highs—and selling for way more than their appraised value. So how can your brokerage keep up with the pace? It's making sure you and your agents win more deals and listings. Deals coming in fast means your agents must navigate listings that have lots of offers and bidding wars. Agents can easily manage offers that come in and keep them all organized in one place with tech solutions like OfferPlace, saving time and stress. With real-time notifications of new offers, agents can notify their clients the moment a new offer comes in, and can easily accept, decline, or counter them all in one place. Mortgage rates creep up while loan requirements loosen Many pros agree that it is easier to buy a home today than in recent years—and even since the 2008 recession. First-time home buyers are seeing a lot more zero or low-down payments options available now, meaning they can more easily afford their dream home. Of course, that means there are more viable home buyers in the market for agents to target. Mortgage rates are expected to increase some in the next several months to the mid-3%s, which will help subdue buyer demand and create less of a chaotic bidding process on that side. However, any rise in interest coupled with already-high home prices could be a hinderance on housing affordability, especially for first-time homebuyers. The good news is mortgage professionals and brokers can help first-time buyers navigate the daunting lending and mortgage process with CRM solutions. A big move to suburb living While urban living is still in, suburban living is taking the real estate market by storm. Buyers are looking for homes in smaller towns surrounding metropolitan areas and are even willing to commute into the metro if a lower suburban home price is on the table. Plus, more people are working from home in this current health and economic climate, and desire more space to sprawl out as work-meets-home life all day, every day. On the flip side, a result of more people leaving the city for the suburbs could mean that home prices in urban areas may decrease. It's a win-win situation for agents as they target both buyers of urban and suburban properties and for brokerages as they grow their business. Competitive market analysis tools offer several tools to analyze various market types and reports that help to avoid overpricing properties—all with the goal of educating agents and their clients. What does this mean for brokerages and agents? It's simple. Real estate agents and brokers need tools to be successful while staying on top of the sometimes tumultuous real estate market. End-to-end real estate solutions that help pave the way through the fog of uncertainty are in high demand for brokerages, agents, home buyers, and sellers. There's no doubt the industry changes from quarter-to-quarter, or even week-to-week. Technology is here to stay, and there's no better time than the present to invest in smart tech solutions that help generate new lead and nurture relationships, educate agents and buyers through the complex real estate transaction process, and that provide real estate market insights to help agents succeed and brokerages grow. To view the original article, visit the Lone Wolf blog.

Harness the Lead Gen Power of Market Trends Reports
Market trends reports are the perfect way to set up touchpoints with your leads. Are they the most powerful lead-gen tool you aren't using? It's no secret that the real estate market is red hot right now. Inventory is at historic lows, bidding wars are the norm, and multiple all-cash offers are increasingly common. But no matter what the market is doing, one thing remains constant: people are obsessed with it. In November 2020, the New York Times reported that "Zillow-surfing" had become a common new hobby and that, "scrolling through real estate listings in far-flung destinations is a way to visualize an alternate life, whether you're trying to move or not." Whether it's scrolling through listings, exploring new neighborhoods, or trying to figure out the perfect time to buy or sell, potential buyers and sellers go crazy for market information. What better way to capture their attention—and their contact information—than with a beautifully designed market trends report? Read on to learn more about the ways your brokerage can harness the lead gen power of market trends reports and keep your lead funnel full in 2021. Buyers and sellers crave information. Satisfy that craving. These days, with the wealth of information available at our fingertips, we've been trained to crave, and to seek out, the information we want. Why not bring the right information right to eager homebuyers and potential sellers instead of asking them to look for it? A well-designed market trends report backed by the most up-to-date and reliable data in the industry is the perfect resource for getting real estate information into your leads' hands. Show them key statistics, active listings, and encourage them to get in touch with you when they're ready. Data-driven decision making Data is what drives every single real estate transaction. It drives agents and brokers, and it drives buyers and sellers, too. Buyers want to know if it's a good time to buy and what kind of house they can afford. Sellers want to know when to list to maximize their potential return. Recent homebuyers want to see how much their home's value has appreciated. So how can your agents share all of these data points with prospects and clients to ensure they can make data-driven decisions? A market trends report. Potential buyers can see median home prices by zip code and active listings, sellers can see how prices are fluctuating and how quickly they might expect to sell, and recent homebuyers can see how the price per square foot has changed over a given period. Important regular touchpoints When it comes to cultivating leads, consistency is key (without being spammy). By consistency, we mean regular contact, so that your brokerage remains top of mind when it's time to buy or sell a home. Being able to automatically send reports every 30, 60 or 90 days means that your agents can provide timely information at the right frequency without bombarding anyone. The right information about the right market conditions might just inspire someone to take action and get in touch, especially if your agents are also following up regularly with key information about interest rates, capital gains exemptions, and other useful tips. Email blasts are replacing direct mail Paper mailers and licking stamps are going the way of the dinosaurs. While a well-executed, targeted mailed postcard or flyer campaign can be wildly successful in certain markets, your business will get much more bang for its buck by giving your agents the tools to switch to email blasts and automated messages like a market trends report. Help your agents reach thousands of qualified leads in seconds and deliver useful information readers actually want to read! Market reports help demonstrate your expertise When your agents share market trends reports backed by Constellation1's industry-leading data, they look good, which makes your brokerage look good. Our data expertise and stunning design paired with your business's branding and customizations mean leads receive beautiful market trends reports with key, eye-catching information and a variety of ways to follow up and stay in touch. Users can easily subscribe to regular reports from your team. Reports provide helpful explanations to contextualize certain key statistics. Add market trends reports to your brokerage's lead gen toolbox today There are few lead gen tools as complementary (and carefree) as automated market trends reports. Give them a try today for your business. View a demo of the Constellation1 market trends report on our Showcase sight here. Our reports feature: The latest market data Historical market data going back 2 years Auto-emailed reports every 30, 60 or 90 days Dynamic data in a responsive design Unique URLs for easy sharing and lead tracking Current Constellation1 Websites customers can add market trends reports to their websites by contacting their account managers. If you're not a Constellation1 Websites customer yet, book your personal tour today to learn more about the real estate industry's best brokerage and agent website tool. To view the original article, visit the Constellation1 blog.

Blame California for Rapid Home Price Increases Nationally
A long time ago, circa 1999, two young executives pulled up stakes and headed west to California. Mattel had purchased Fisher-Price in 1993, and Marilyn was fully vested but growing a bit weary of her role as head of Global Strategic Planning. I had recently sold my second start-up and was intoxicated by the incredible economic growth oozing out of California's technology companies. Businesses were going from seed stage to public in six months with no product and no revenue. As we scouted for opportunities, one that looked very attractive was Tellme Networks, founded in San Jose by Mike McCue, a pioneer in speech recognition. Mike wanted Marilyn to run marketing, but she turned it down. It later sold to Microsoft in 2007 for $800 million. I remember home shopping with our Alain Pinel agent. We were walking into million-dollar homes that looked like small, poorly-renovated guest shacks. We saw nothing that we wanted to live in – especially at four times the price we paid for our home in Orchard Park, NY. Every time we walked out of a house, the agent would stop us at the curb and say, "If we get in the car and leave, this house will sell before we come back." We ultimately nestled down in San Luis Obispo County, where Marilyn became CEO of Surveyor Corporation, and I joined the venture capital firm that was the lead investor. It was the hottest startup in the webcam space, founded by Howard Gordon, the engineer who created MP3 compression to enable streaming on the internet. At his first company, Xing, Howard wrote the speedy JPEG and MPEG compression schema. Howard and Marilyn were a great team, but when the bubble broke, the dreams of Surveyor were over. But our dreams of living in California were not over. We were here to stay, started WAV Group, yadda, yadda. Fast forward to today... Kevin Hawkins, head of our PR division, asked me a question this morning for a client about new home building in Texas. As you may know, homebuilders are out of inventory and are now resorting to auctioning off homes that are not even built, with no guarantee that you will get the house you buy for that price if building materials go up. Kevin asked, "How long will homebuilders be out of inventory?" A long time, I replied. "Why do you think that?" he asked. I shared my answer and Kevin suggested that I share it in a post—so here you go. Blame California for rapid home price increases nationally. People are leaving California and its long list of problems, which include: Californians pay the highest tax rate in America at 13.3%, followed by Hawaii at 11%, New Jersey at 10.75%, Oregon, Minnesota, DC, New York and Vermont at about 9%. Seven states have no income tax rate: Wyoming, Washington, Texas, South Dakota, Nevada, Florida and Alaska. Only Hawaii edged out California for the worst state for public transportation. California public schools are among the worst in America. California has the highest murder rate in America and is 14th highest in crime. Dysfunctional sanctuary cities and immigration system. With a median home price in California of over $700,00, California is the least affordable state to live in America. California has the highest average gas price in America at $3.68 per gallon ahead of Hawaii and Washington at around $3 per gallon. California has now passed Hawaii as the highest energy price in America at .48 per KWH (and to make it worse, they are taking the last nuclear power plant offline in 2025 that will create a bigger problem of power blackouts). California is in another drought—there is simply not enough water. California has the highest homeless population—accounting for one in five of all homeless people in America. California reportedly paid out $11 billion in fraudulent EDD claims during the pandemic. The San Francisco Bay area has 27 different transit agencies. California went after Uber and Lyft drivers with AB5 to make the gig economy something other than what it is—a side job to afford living here. White households in California have a median household net worth of $355,000 vs. black households at $4000. California has the worst forest fires and earthquakes in America. And to top off the list—California has the second-highest building costs and most difficult process for getting a permit to build or remodel a home. (Hawaii, in the middle of the Pacific Ocean, costs a little bit more). Add it all up... California leads the nation in people leaving the state. According to Evan White of the UC Berkeley Policy Lab, 267,000 people left California in Q4 of 2020. They took their home equity and traded it for homes in Texas, Arizona, Nevada, Oregon, Washington and other western states that offer housing at one-fourth of the price.   In conclusion, if you want to understand what is happening with housing in America, I would say that California's mass exodus might be a leading cause. California leads at everything else: why not give them the victory here too? And as a side note, I would be willing to wager that the dollars Californians save when swapping their $750k home for larger homes in Texas for $250k is heading straight into the stock market. Like the housing market, I would say that the stock market is overvalued too—but I will save that for another post. To view the original article, visit the WAV Group blog.

How NAR Got It Wrong in 1988 May Teach Us Something About Today
When George Slusser joined WAV Group to lead our Mergers, Acquisitions, and Valuations team, we all reviewed his book titled Acquiring Profit. I love reading old business books because time is a cruel fact-checker, and also because the thoughts of leaders in the past give us great guidance for our current forecasting predictions. Namely, don't make them. When the book was written, the National Association of Realtors predicted that their membership would shrink from 820,000 to 500,000 by Y2K – the year 2000. At that time, there were also around 70,000 brokerages. The thought of industry leaders at the time forecasted the demise of the small, single office mom-and-pop brokerage. Oops!

zavvie Launches New Seller Preferences Report
Despite the pandemic, last year set new real estate sales records. But how did iBuyers fare? The unprecedented scarce inventory conditions continuing into this year have heavily favored sellers, a perfect environment to introduce the hottest new method of selling a home -- buy-before-you-sell bridge providers. Has iBuying been overtaken in the race for seller attention? The new zavvie Seller Preferences Report, covering all selling solutions available to homeowners throughout the U.S. from October to December 2020, was released today by zavvie, the first end-to-end real estate brokerage platform encompassing all selling solutions. Last year, "iBuyers were down but definitely not out," said Stefan Peterson, zavvie Chief Data Officer and Co-Founder. "iBuyers continued expanding into new markets and are buying higher-priced homes, meeting seller demand, and delivering high seller satisfaction. But the biggest surprise for sellers in 2020 is the rapid emergence of the bridge buy-before-you-sell providers." The new report provides all the details. The zavvie Seller Preferences Report is the only quarterly review of its kind for every selling solution available to homeowners throughout the U.S. The report looks specifically at activity among iBuyers and the increasing influence of bridge solutions nationwide. It examines offer strength, offer acceptance rates, service fees, average concessions, and time to close for selling solution providers. The zavvie Seller Preferences Report Q4 and 2020 year-end highlights: iBuyer purchases fell 57% last year from 2019. iBuyer and bridge provider "buy boxes" (their targeted purchase price range, age, and other conditions) continued to widen in Q4. iBuyers' offer strength is down 3.1 percent, year-over-year, falling from 98.6 percent of market price in 2019 to 95.1 percent in Q4 Offer acceptance rate for iBuyers continues to rise to 6.1 percent in Q4, a 45 percent increase from 2019. Bridge solutions are hotter than ever: Offers continued to be accepted much more frequently than iBuyer offers as the bridge offer acceptance rate was five times higher than for iBuyer offers in Q4. Bridge programs expanded their buy boxes to include homes up to $2 million and in lower-population-density areas. iBuyer service fees dropped significantly in Q4 and for the full year, down 21 percent from 7.6 percent in 2019 to 6 percent in 2020. iBuyer average concessions, time to close, and seller satisfaction all were higher in Q4. Notably, average seller satisfaction passed 9.0 on a scale of 1-10. "The new zavvie Sellers Preference Report helps empower the modern agent," added Peterson, pointing out that zavvie also recently released its new Verified Buyer Map. This interactive nationwide map shows where leading iBuyer and bridge solution providers operate. "The modern agent brings iBuyer, bridge solutions, and an open market listing — all of the selling options — to the table. Instead of fearing what disruptors are doing, the modern agent co-ops these new selling methods because they are the trusted advisor. The modern agent helps consumers fully understand all their choices, showing the advantages and disadvantages of each." The complete zavvie Seller Preferences Report is available for free at zavvie.com/seller-preferences.

4 Trends We Expect to See More of in 2021
2020 was definitely one for the books, at the risk of putting it mildly. The events of 2020 forced a lot of change in nearly every industry, threatening to upend those that couldn't adapt in time. But there are two sides to every coin, and the flip side of that chaos was technology -- the new tools and new approaches that helped solve newly discovered pain points so people could keep up business as usual. As the pandemic continues into this year, some of the trends that surfaced in 2020 have stuck around—and we expect to see a lot more of them through the year.

The 4 Pillars That Will Drive Real Estate Forward
For over a hundred years, selling a home involved one option: offering it for sale on the open market. While that's still how most homes sell today, innovations in fintech backed by billions in capital are giving sellers more options than ever. If agents don't bring more options to the table themselves, they will be left behind. The four pillars that will help drive our real estate market forward include the bridge, the instant sale, the listing concierge and the open market. At zavvie, we have built all four of these options into the newest version of our Offer Optimizer brokerage solution. Here's how they work.

Can You Guess What the Top 10 Issues Affecting Real Estate Have in Common?
The Counselors of Real Estate hosts one of my favorite annual press announcements. CRE is a 1,000 "by invitation" membership organization comprised of industry veterans representing investors, financiers, developers, corporate real estate professionals, appraisers, consultants, attorneys, brokers, and other industry professionals. They produce an annual Top 10 list created from a poll of its members that is always interesting and thought-provoking. I wrote about their list last year and the year before.

Real Estate Is About to Get 'Creepy' and Why That's a Good Thing
Gary Keller and Josh Team, who run Keller Williams, talked about it. Then Simon Chen, head of Product and Innovation at Realogy, did too. Amazon and Netflix already do it. Real estate is about to get personal in a whole new way. Real estate is on the cusp to deliver what Amazon does. Right now, Amazon does it better than just about anyone. It knows what you want to buy before you do. Amazon learns from your behavior and becomes intuitive.

How to Deal with Coronavirus in My Business: An Analytical Approach to Business Leading Indicators, Part 3
I recently talked about trending data as we are seeing it now. You can find that article by clicking here, and you may want to read it before reading this article. Additionally, I did a follow-up article to the first one where I discussed Rate of Change analysis methodology that I use from ITR Economics. That article can be found here and I also recommend reviewing that article first before you read this one. For this article, I want to discuss analyzing the lead flow into your business from your website. I will caution that you need to consider multiple factors when tracking and analyzing your lead flow. I'll mention some of these below.

How to Deal with Coronavirus in My Business: An Analytical Approach to Business Leading Indicators, Part 1
Five weeks ago, I was meeting with 15 business owners, and we were talking about how good business is and how we should be planning for a black swan event. We all agreed that we should as we continued talking about watching our business metrics as all of our businesses were growing at phenomenal rates. Times would be good, and I would have never thought that I would be writing an article just five weeks later in the middle of a black swan event. But here we are today dealing with the impact of Coronavirus on our lives and businesses.

CENTURY 21 Survey Reveals Disconnect Between High Value Placed on Agent's Role and Lack of Time Spent Selecting the Right One for the Job
73% of homesellers agree that their agent was as valuable as a therapist; 64% of homebuyers agree their agent knows them better than their next-door neighbor Today, Century 21 Real Estate released data from its new real estate industry survey that has uncovered significant insights into what the home buying / selling process is like for Americans, as well as trends that the company believes will influence the industry in 2020.

6 Real Estate Trends to Keep an Eye on in 2020
The countdown to 2020 is officially on! That means one thing: planning season. We're taking a look back at some interesting patterns from 2019 and discussing our top picks for real estate trends to look out for next year.

Let's Talk Real Estate: Strategies, Smartphones, Safety, and More
Welcome to Let's Talk Real Estate! This is a regularly scheduled column where we go over what's going on in the industry--from news to industry expertise, fun facts and more. First up, let's talk partnerships. Lone Wolf has a lot of partnership announcements coming out lately, with both Updater and Presto in recent weeks. You can read more about them here and here. These partnerships are an integral part of Lone Wolf's ecosystem strategy, which is all about bringing the real estate industry an all-in-one marketplace of tools that actually work together.

Buy, Sell, Build, Move: AI's Impact on the Future of Real Estate
As the CEO of Chime Technologies, I now spend a lot of time considering how such technology can impact the real estate industry both today and well into the future. I know what you are thinking--AI and real estate don't exactly seem like an obvious match. It's true that historically this market has eschewed technology innovation. For decades, the industry has been reliant on relationships, word-of-mouth marketing, and traditional business operations to buy, sell, negotiate, and grow. And yet real estate is undergoing its own digital transformation—driven in part by AI. Let's take a closer look at how the push towards AI innovation may impact the future of the real estate and how it is already changing the residential real estate process.

Top 10 Issues Impacting the Real Estate Industry: Annual Forecast Reveals
As a data junkie, I love Top 10 lists. So, when The Counselors of Real Estate releases its member survey of current and emerging issues that will have the biggest impact on real estate in 2019 and 2020, I'm all ears – and eyes. The 1,100 member Counselors released its Top Ten list once again at the National Association of Real Estate Editors conference, this year in Austin. The top concern? U.S. infrastructure was identified as the #1 issue impacting real estate.

7 Real Estate Website Trends to Watch
Real estate websites are a lead-generating staple, and give your brokerage a place to make an impact online. And just like every other first impression you make, it's important to have the right tools to make a good one! Here are some of the trends that have made an impact so far this year—and ones to watch as we head into the second half and 2020!

Top 5 New Real Estate Brokerage Models in 2019
Amazon, Google and Apple are looking to invest in real estate tech. The growth in popularity of smart homes makes this a logical move. Facebook has also announced plans to venture into real estate. Real estate data is published on Facebook by agents daily, and that data belongs to the social media giant. So why are these mega-corporations trying to get into residential real estate, besides the obvious? Because numbers don't lie. Check out some of the brokerage models that are currently out there.

What Real Estate Brokerages Need to Know about Gen Z
This week at RGX, our focus is all about the future of real estate and the technology that powers it. So to go along with that, let's take a look at the future of real estate—and who will have a big role in it. Yes, I mean Gen Z. It wasn't too long ago we were talking about why real estate brokerages need to put the spotlight on marketing to millennials—and how to do it. But with millennials now reaching 23 years old minimum, they're making room for the next generation, too.

Predictions for 2019 in Real Estate
Over the past five years, venture capital has poured into the real estate sector creating exciting new technologies, establishing new brands, and expanding the abilities for both professionals and consumers. Chief among them are the integration of artificial intelligence, the growth of Compass, additional lines of business for Zillow, and proliferation of a consumer-first attitude when it comes to technology development. Backed by a ten-fold increase in VC dollars, there are significant trends that have lots of wind in their sails. Here are some of my predictions for how this will play out in 2019 (and beyond):

How to Stay on Top of Marketing Trends
Marketing trends are like other current customs in business. Some will stay and some will go. But firms that jump on them at the right time stand to increase their profile and revenues. Plus, you don't have to be an industry insider to get in on the action. Read on to learn how to spot and stay on top of the latest marketing trends.

OpenAI Says New AI too Risky for Full Disclosure
OpenAI has determined its latest research into language-processing AI models has high-risk implications if fully released to the public—a risk OpenAI has felt compelled to limit the amount of published information from this advanced research. Before diving deeply into the research, here is a little information about OpenAI. OpenAI was created at the end of 2015 through a $1 billion backing by leading Silicon Valley people and organizations. The goal for this non-profit group clearly outlines its mission statement.

How to Forecast Sales Like a Chief Operating Officer
Forecast. Budget. Calculate. We hear a lot about business plans and sales projections this time of year. And though we can find plenty of helpful articles, or can draw from experience, maybe we should think of sales forecasts like Chief Operating Officers (COOs). In real estate, we always have one question to answer: How much money are we going to make this year? Most of us don't have consistent paychecks. We don't have a set salary. We're paid by the number of real estate transactions. So, defining what this year looks like for business is a top priority. Now, I'd like to make a quick interjection. I'm not saying think of sales forecasts like a Chief Financial Officer. I'm saying think of it as a Chief Operating Officer. Here's why: Because COOs are looking at the business and market as a whole. Whether you're a real estate agent or a broker, you want to know how much money you're going to earn (this month / this quarter / this year). Historical data and averages lose impact if they're not used within context... i.e., how you plan your business efforts. You're not just financially planning. You're acting on it with your day-to-day decisions. In real estate, we often double as strategist and soldier. We plan, but we also do the dirty work. Let's jump into the mindset of a COO and begin sales forecasting... Goals are second. Past Data is first. We're always ready to set ambitious goals. "I want to close 10 deals this month." or "I want the team to sell $200 million in units." Those are random goals if you don't have data to back up those decisions. And randomness costs money, because it impacts how you market yourself or how much money you spend in advertising. It's going to hurt when you realize you can't handle the number of leads it takes to close 10 deals. Sales forecasting starts with historical measurements. You can't forecast if you don't understand market behavior—the same way meteorologists understand the behavior of certain storms. They can estimate which way hurricanes will move because they have models to guide them—models built on past data. You need the same in real estate. Here's what data you should gather: 1. Measuring Agent Workload Gauge your your agents' bandwidth based on the number of leads and deals you handled each month, averaged. Then rate the workload. Was it too much or too little? Could you easily handle more leads or would you need an assistant? 2. Customer Acquisition Cost (CAC) To determine customer acquisition cost, examine how much you spend to generate leads. Then look at how many leads turn into actual clients. Understanding how much money it'll take to generate transactions will help you budget your finances, and ultimately estimate how many deals you'll close per month. 3. Market Growth Lastly, track and analyze how your real estate market is growing. What percentage growth did it see last year? Over five years? What does the market activity look like? If homes are being sold quickly and listings are available at a steady pace, then what does that mean for opportunities this year? Can you expect to aim for higher goals or do you need to prepare for stagnation? Most of this data can be found with your local MLS organization, housing sold information, etc. Next Step: Finding Trends As you look at historical real estate data — how many deals you closed, what costs accompanied your deals — you can begin sales forecasting. On a monthly basis, how many transactions were completed? Now, can you achieve more (i.e., is the bandwidth/workload available)? Then — thinking like a Chief Operating Officer — what's the business strategy? Do you need to hire help or maybe increase your marketing budget? Or perhaps, improve your workflow. As a real estate agent or broker, this is where you decide what goals you want to set—and then how to reach those goals. Answer these questions: What is the historical data showing me? What are achievable goals for this month/quarter/year — based on the data? How will I achieve those goals? Example: I'm a real estate agent. The data is showing me I can close five deals a month within a $500 advertising budget, and with relative ease. If I want to close 10 deals a month, I know I'll need to raise my marketing budget and maybe hire an assistant. Advice for Forecasting and Setting Large Goals A common mistake many agents and managers make with forecasting and setting goals is this: They think it's a one-time deal. "I've set my goals and business plan. Now, I just flow with the current." NO! You don't. Chief Operating Officers know plans go astray. Things happen between today and tomorrow. Between January and June. No plan or forecast is set in stone. Like the weatherman, every day they track where the storm is headed and make adjusted predictions. You need to do the same (though not every day). What happens is people make a plan and then focus on making it come true. You will stop thinking about other possibilities. You've decided 'this' plan is the best and your name is on it. You will defend it because it's 'yours.' But really, set time periods to analyze your goals and business plan throughout the year. Be willing to adjust it. Scrap it. Or re-write it. Flexibility is key to winning any real estate market. Analyze and adjust regularly. There's no such thing as a 'perfect' plan. To view the original article, visit the BoomTown blog.

Millennials: New Year, New Home?
It turns out a lot of millennials want to buy a home someday--a whooping 89 percent according to a new Apartment List survey. But, just 5 percent expect to buy in 2019 and 34 percent say they will wait at least five years. Why the lag? While the dream of homeownership is strong, 72 percent cite affordability as the critical issue.

A Look Inside the 2019 Swanepoel Trends Report
Author Stefan Swanepoel began writing a series of Trends Reports in 2006. His 2019 report does not disappoint. The report chronicles the top 10 trends that he recognizes as material topics for our industry to think about. Swanepoel believes that this year will be "the single largest industry transformation in living memory." The 10 significant trends that were identified are as follows:

What's the Average Age of a Repeat Buyer? The Impact of Longevity Emerges
From the NAR Boston conference, one statistic keeps ringing in my head. As a confessed data junkie, I consume a lot of real estate research, so I'm pretty jaded. But when NAR's research guru Jessica Lautz showed a slide at a press conference entitled "Median Age of Home Buyers," I almost fell off my chair. The median age of a repeat buyer in 1981 was 36 years old. Today, it is 55 years old. That is a stunning statistic.

Why Successful Brokerages Must Embrace Change
Don't get too comfortable. That's right, if you want to be a winner in today's real estate game, you have to start embracing change. We hear a lot about change, especially when it comes to technology. The rapid pace at which technology is developing is forcing businesses in all industries to adapt to new competition and changing consumer expectations. Rightfully so, many business leaders in our industry are resistant to change, hesitating to evolve their business into its next phase. However, getting stuck in your ways will only cause your business to stagnate in a market full of growth.

3 Trends to Help Grow Your Business Faster
Salesforce's "Dreamforce 2018" is this week in San Francisco. WolfNet's Jennie MacIntosh, VP of Operations for the real estate industry's most trusted MLS data standardization provider and leading innovator of IDX solutions and website services, will be a speaker. She's on a panel this Thursday, September 27, 11:00 AM - 11:40 AM at the Marriott Marquis, Yerba Buena Salon 1-3 with Brent Leary, Managing Partner, CRM Essentials and Bernard Morgan, CEO, ICS Plus. They're discussing "3 Trends to Put Your Small Business on the Fast Path for Growth." Here's Jennie's view on this topic. What do your customers want today, now more than ever? Faster response times. The business world has created a need for speed. And if you don't deliver it, your customer is going to go somewhere else. Most businesses struggle when it comes to fast response times. A lead response study by Harvard Business Review of 2,241 firms found the average lead response time for B2B companies was 42 hours, and 23 percent of companies never responded. We're a little better in real estate, but still nowhere near where we need to be. An agent responsiveness study conducted by WAV Group for Weichert Realtors found the average time an agent took to respond to a lead was 917 minutes. Nearly half (48 percent) of buyer inquiries never received a response. There's an enormous chasm between how fast businesses are responding today and how fast customers want a response. Researchers say 41 percent of US consumers admit they are more impatient today than they were five years ago, due to their over-reliance on technology to complete everyday life activities. On social media, 84 percent of consumers expect a business to respond within 24 hours of a posting. On Twitter, people who are complaining to a company expect a response with an hour. It's the same for email. And if they call you, a consumer will only wait on hold for an average of 11 minutes before hanging up. Fortunately, three trends have rapidly emerged to specifically address your client's need for speed: automation, digital conversations, and artificial intelligence. Let's take a look at how each of these can help you grow your business faster by tackling the speed issue. Automation Automation has become more than a time-saver for businesses and their sales forces. It's also become a way to improve how we incorporate technology into our daily business lives. Take the CRM, for example. Automation has accelerated adoption of a well-designed CRM, like Salesforce, because it makes a CRM a more powerful business tool. For example, a study last year by Introhive revealed 58 percent of users found a CRM was more helpful when the CRM automatically inputs data from other sources. Nearly half (47 percent) said a CRM was more helpful when it automatically surfaces important insights on contacts, accounts or deals. And 46 percent said a CRM was more helpful when it can automatically format important insights for easy communication with customers or prospects. Automation is also helping to turn data into customer trust. Automation improves four crucial areas when it comes to mining data: speed, consistency, accuracy and scalability. Be-cause the automation process helps to ensure data consistency and accuracy, the reliability of the data is enhanced. The deeper insights that automation helps draw out of the data lead to better understanding. And increased understanding can translate into greater empathy from your customers. The ability to provide this experience with warp speed, and to do it again and again, builds customer trust. Digital Conversations Conversation interfaces are changing how we think about technology. How our customers interact with technology on a daily basis has also changed. The good news is: This is a space where your company, large or small, can help close the speed gap in meeting customer response requirements. The first area of digital conversations you can apply to grow your business faster includes the world of bots. A bot is simply a software program that can execute commands, such as reply to messages or perform routine tasks, typically automatically. In real estate, the most common use is for agent websites, where chatbots often are used to conduct a text conversation to answer basic customer questions. Chatbots are typically used when a popup is deployed, inviting questions a website user may have. Today, there are all kinds of bots with specialized purposes. Information bots use chatbots, the same technology that agents use, for everyday consumer requests. Application bots are used to build interfaces to mobile applications. Enterprise productivity bots help streamline work activities and improve efficiencies. And Internet of Things (IoT) bots enable conversational interfaces for device interactions. Today, messaging bots powered by AI are huge timesavers that make business more profitable. Facebook Messenger alone has 110,000 bots. Remarkably, 44 percent of consumers say they prefer chatbots for customer service, according to a research study by Aspect. The study also found that 65 percent of consumers feel good when they can resolve a customer service issue without a live person. That's up from 57 percent in a year. And 70 percent of respondents prefer to use chatbots to interact with companies for simple to moderate interactions and transactions. As chatbots get smarter, consumer preference is swinging towards digital conversations. The other area that businesses can leverage to grow faster is in the voice-activated speaker world of Amazon Echo and Google Home. Your customers are embracing this new technology. These voice assistants are the most likely technology to be used by consumers, and 56 percent of all consumers say they like the latest technology, according to research by Fetch. More importantly, 72 percent of people who own a voice-activated speaker say that their devices are typically part of their daily routine. And this number might scare you a bit: 41 percent of people who own one of these devices say it "feels like talking to a friend," according to a Google/Peerless study. How can you tap into this new tech? Customers want to access information about your business on these devices: 52 percent want information about deals 48 percent want personalized tips and information that can make their lives easier 42 percent want information about upcoming events and activities 39 percent would like options to find your business or your hours of operation 38 percent want to use these devices to access your customer support Artificial Intelligence (AI) The last top trend that can help you grow your business is one we've already covered at a surface level. Artificial intelligence (AI) is what is makes automation better, chatbots smarter, and Echo and Google Home devices work. But AI will do even more to help you grow your business if you let it. A great example is OJO Labs, a real estate AI startup from Austin. Like Siri or Alexa, OJO's AI assistant answers questions that some consumers searching for a home may be hesitant to ask an agent. Consumers in the very early stages of the home shopping process often don't want to bother an agent with questions, while others fear asking an agent questions could result in sales pressure. OJO's AI assistant solves both problems. By tapping into WolfNet's vast database, OJO is already pretty smart. A home shopper can text OJO and ask if a property has a certain feature, like a backyard. OJO AI's response? "Yes, it has four large oak trees for privacy and shade around the back patio." Right now, OJO is using image recognition software and AI to quickly learn what a home buyer likes and doesn't like about homes. It then searches through millions of photographs in seconds to find the homes that match the buyer's personality and style. Another example of using AI that most business can relate to is for lead scoring. Over time, AI gathers and analyzes data to learn things about your leads. It starts to discover which leads are most likely to convert and then scores your leads. This allows your marketing folks to figure out which channels are delivering the highest-scored leads. And that will lead to improving your ROI on your marketing spend. Most importantly, AI gets better over time because it gets smarter. If you have an AI for your CRM, such as Salesforce Einstein, then the more it learns, the better insights and suggestions it can provide your business. In the end, these three trends — automation, digital conversations, and AI — can all help you increase your response speed. That will help you grow your business more rapidly because customers not only want better service, they will also pay for it. Gladly's 2018 Customer Service Expectations survey indicated that 68 percent of customers would pay more to the company that provides great service: 33 percent would pay 1-9 percent more; 27 percent would pay 10-20 percent more, and 8 percent would be willing to pay over 20 percent more if the service was great. Jump into these trends, provide your customers the speed they need, and they will reward your business for the enhanced service you can deliver.    

Market Watch: Updated 2018 Changes to Buyer Demographics
Following an exciting spring, real estate trends point to a few changes on the horizon. What will the rest of 2018 have in store? Changes Predicted for the Rest of 2018 Stay on your toes and be on the lookout for these changing real estate trends:

To Worry or Not to Worry: Blockchain's Role in Real Estate
Blockchain, Bitcoin, cryptocurrencies--what's the difference? Why does it matter? What does it mean for our future? It feels like the topic of the year regardless of the industry you're in. Earlier in the year, we wrote an article on cryptocurrencies in the real estate world--buying homes and paying rent with digital currency. While some are splitting up a transaction to use some cryptocurrencies, others are doing the entire transaction via cryptocurrency. There's even a "Blockchain real estate platform" called ShelterZoom that just announced their application is live in over 10 states. It's all happening very quickly, but it's important to make sure we're all caught up on the basics. Let's start here:

Transparency and You: What to Know About this Important Market Shift
Remember the days when availability, pricing, market trends, and histories used to be available almost exclusively to the professional real estate industry alone? In today's real estate market, you are no longer 'gatekeeper' to this coveted 'information key.' Today, we'll take a closer look at transparency in the industry, and how the Internet is changing the market.