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NextHome announces new Dayton-area brokerage

NextHome announces new Dayton-area brokerage

Sherma Sullivan

Pleasanton, CA — December 31, 2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome New Trend Realty, based in Beavercreek, Ohio. The brokerage represents the eighth office location opened in Ohio for the NextHome franchise

NextHome New Trend Realty will serve clients across the Dayton area including Beavercreek, Kettering, Centerville, Springboro, Miamisburg, Fairborn, Xenia, Oakwood, Bellbrook, Middletown, West Carrollton, and the remainder of Greene County.   

The brokerage is owned by Sherma Sullivan. Her and the NextHome New Trend Realty team is happy to serve the needs of residential, investment, property management, and commercial clients. 

“NextHome New Trend Realty will be known for a superior level of interaction and support through the buying and selling process,” Sherma said. “It is really important to us that we are representing the buyer or seller well.”

Sherma began her career in 1998 with The Real Estate People in Columbus, Ohio. Her first year selling, Sherma earned the Columbus Board of REALTORS® Presidential Award. She continued to be her brokerage’s top salesperson for the next seven years. 

Sherma also has experience working with large national real estate franchises and small boutique brokerages. In 2015, she joined Key Realty where she began recruiting and training agents while maintaining her superior sales service. 

As Sherma contemplated opening her own brokerage, she stumbled across NextHome through an internet search. 

“I fell in love with the marketing and branding,” she said. “I felt like the company seemed very reputable and honest which was very important to me.”

Today, Sherma is sharing the NextHome difference with clients across the greater Dayton area. 

“To be able to come in and have everything in place that agents might need, from the tools to the marketing and support, was a huge benefit,” Sherma said. 

Please join us in congratulating Sherma on the opening of NextHome New Trend Realty!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

NextHome announces newest brokerage in Northern Maine

NextHome announces newest brokerage in Northern Maine

Dan Amero & Dan Castle

Pleasanton, CA — December 30,2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome Discover, based in Presque Isle, Maine. The brokerage represents the fifth office location opened in Maine for the NextHome franchise and the 536th NextHome office opened nationally.

NextHome Discover will serve clients across Aroostook County, including Presque Isle, Caribou, Houlton, Fort Kent, Ashland, Fort Fairfield, and Mapleton. 

The brokerage is owned by Dan Amero and Dan Castle – locally known as “Team Dan.” 

Since starting sales in 2007, Amero has developed a reputation for excellence in the area’s real estate market. The duo met when Castle approached Amero wanting to buy a home. 

“He reminded me a lot of myself in my younger days,” Amero said. 

Castle’s qualities included a perfect blend of determination, grit, and professionalism. 

When Castle’s offer didn’t get the approval he expected from the bank, Castle doggedly kept working to make the deal a success. 

“The next Monday morning, Dan Amero called me and said, ‘whatever you just put in your letter to the bank worked because we now have a signed contract,’” Castle recalled. 

Castle obtained his real estate sales license in 2018. 

Since that time, the duo has worked both independently and in a partnership. Their experience with a variety of brokerages gave them special expertise in land, modular homes, and residential transactions. 

After Castle and Amero teamed up in 2018, their success was remarkable. That first year, they achieved $3.5 million in sales in a market where the average sales price hovers around $110,000. This year, the pair will easily clear $10 million in sales with more than 100 sides to their names. 

“We realized we were doing something right,” Castle said. 

That’s when they decided to go out on their own. 

After hearing glowing reviews from industry leaders they respected, Castle and Amero decided that NextHome was the right franchise fit. 

“The more we looked, the more we liked it,” Amero said. “NextHome is the best-priced franchise out there, and we were amazed at what we were getting in return. It just made sense.”

Today, Castle and Amero are taking Team Dan to the next level with five dedicated agents already onboarded and ready to serve area clients. As the brokerage continues to grow, Castle and Amero aim to make NextHome Discover an attractive place for self-driven, people-first agents. Eventually, the duo would like to expand with branch offices across their 100-plus mile wide coverage region. 

“One of the things that put Team Dan on the map is our cutting-edge technology,” Castle said. “We are thrilled to be able to offer clients and agents a fresh, modern approach to real estate.”

Castle has his drone pilot’s license and enjoys providing aerial footage for their listings – right at the listing appointment. 

“One of the things that brought us to NextHome was that this company is on top of it when it comes to industry-leading technology,” Castle said. “It is great to partner with like-minded people.”

Outside of work, Amero enjoys spending time outdoors with his family. He recently became engaged to his fiance Chelsea, and together the couple has a two-year-old daughter, Lillia and son, Brayden (10).

Castle and his wife Courtney enjoy summers in Maine, spending time on the water in their pontoon boat, and relaxing at one of the area’s beautiful cabin getaways. Dan and Courtney are the parents of two children, Carlie (5) and Carson (4). 

Please join us in congratulating Dan Amero and Dan Castle on the opening of NextHome Discover in Presque Isle, Maine!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

NextHome announces new Wisconsin brokerage

NextHome announces new Wisconsin brokerage

Mini Samuel

Pleasanton, CA — December 29, 2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome Refined, based in Kenosha, Wisconsin. The brokerage represents the 16th office location opened in Wisconsin for the NextHome franchise and the 535th NextHome office opened nationally.

NextHome Refined, licensed in both IL and WI will serve clients across Southeastern Wisconsin and Lake County, Illinois. Under the leadership of Broker/Owner Mini Samuel, who has her designations in Staging, Luxury Real Estate, Seniors Residential Real estate, and Short Sales and Foreclosures, NextHome Refined is well equipped to service a diverse group of clientele.

“Our vision is to provide white-glove service that is framed by the guiding principles of honesty, integrity and exceptional customer service exceeding our clients’ expectations,” said Mini

Mini began her real estate career in 2003 to ensure she could be active in the lives of her two children. The majority of her first seven years in the business were spent with Shorewest Realtors before she opened her own brokerage in 2011 which she ran successfully for nine years.

Mini discovered the NextHome Franchise model in 2019 and was sold on their commitment to consumer-focused technology and unmatched marketing. 

“Their suite of offerings would help my vision of building a great team of agents as well as delivering white-glove service to all our clients,” said Mini.

Mini has been a co-owner of a NextHome franchise since early 2020. However, as her business expanded and her career evolved, Mini took advantage of an opportunity to be the sole owner of her own NextHome franchise.

Today, NextHome Refined is offering clients a new level of refinement when it comes to their selling and buying needs. For agents looking for a new career opportunity, NextHome Refined offers a dedicated broker who is passionate about education and agent success. 

“I believe in a simple formula: Hire top-notch people, train and support them and provide the latest tools and technology”

Mini believes it is important to be a part of the community you serve which is why she proudly supports local events and non-profits. Mini teaches English to adult learners at the Kenosha Literacy Council and is also a volunteer with the Big Brothers Big Sisters of America. She has recently partnered up with The Foster Closet of Kenosha where a portion of her commission goes to help children as they are placed into their Next Home. 

When she gets some downtime at home, Mini enjoys reading and catching up on her favorite shows. Her daughters, Amanda (25) and Ashlee (22) have grown up to be two very independent and strong women who she is immensely proud of.

Please join us in congratulating Mini on the opening of NextHome Refined in Kenosha, Wisconsin!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

2021 Housing Market and Economic Forecast, Unfiltered

2021 Housing Market and Economic Forecast, Unfiltered

Providing a prediction for 2021’s economic outlook seems a little silly, because if anyone had a 2020 forecast, well, they were wrong. Really, really wrong. But what the heck, I’m not afraid of much, so let’s go ahead and break down what Crazy Uncle Keith thinks 2021 will hold. 

Just remember this is based on educated assumptions on my end, so if you look back in December 2021 and I got it all wrong, please accept my apologies. 

Rates will go up. This isn’t exactly going out on a limb. We hit a “record low” interest rate a record number of times in 2020, and here is a 10 year chart to prove my point: 

Source: Y Charts | https://ycharts.com 

We’re looking at a historic low, meaning we can’t go anywhere but up. This will be a headwind for residential real estate going into 2021. With that, refinance if you haven’t already because by the end of 2021 rates will be higher than they are today. 

Low inventory will persist. To say we had “low inventory” is like saying “2020 has had some challenges.” Bloomberg even reported that we might run out of homes in three months – no joke, they said that. That’s an inflammatory way to say new homes have a little over a three month supply, that’s the lowest level since 1963. If you overlay that low inventory with household formation numbers, you get a staggering graph. 

Source: Zelman & Associates | https://www.zelmanassociates.com

This is the graph I look at to gauge inventory levels. It’s not just about how many houses (supply side), but also how many households are going to be formed (demand side).  Viewed through this lens, we have had the hottest real estate market since 1989… by a long shot. That won’t change much in 2021. I think this graph will bottom and start to climb back up as inventory levels rise (see below) and rising rates will slow the formation of things a bit (see above). However, since it’s so low, it’s still going to feel like a constrained inventory market. 

Inventory will rise in 2021. This is similar to the rate thing. It has to go up because it can’t keep going down. There is some pent up demand on the listing side, which means buyers were less afraid of traipsing through strangers’ houses a few times than sellers were about having a herd of buyers meandering through their house. A lot of homeowners put their moving plans on hold.  

We were in a tight inventory market before this, and that only exacerbated the problem. Most of what I have read predicts we’ll be past the pandemic in Q3(ish) of 2021, but I’ve also read as early as Q2 and as late as Q4. As we get closer and closer to being past it, behaviors will revert to a more normal process.  

Source: McKinsey & Company | https://www.mckinsey.com

That pent up demand I talked about earlier is going to come rushing into the market while demand is high and buyers are starting to wear out. Get ready for an amazing summer in 2021. You’re going to be busy, and you’re going to have more homes to sell.  

The flight of the urbanites. There has been a lot of talk about people “fleeing the cities,” and to some degree that is true. Based on a Pew Research Center study, about 28% of people said they chose to move because they feared getting COVID-19, but let’s unpack some of those numbers. How many of those changes of address forms were permanent versus temporary?  Mostly temporary.  

Source: My Move | https://www.mymove.com 

https://www.mymove.com/moving/covid-19/coronavirus-moving-trends/

You’re reading that right: a nearly two percent increase year over year in a permanent change of address forms (what we in real estate think of as “moving”), and a nearly 27% increase in a temporary change of address forms. This is routing all my mail to my lake house because we’re going to stay there for a few months. Or, “I lost my job and have to move in with my folks for a few months” change of address.  

Have some people left the urban areas never to return? Of course they have, but what makes those downtowns special will, when the world opens back up, be special once again. You can’t go see Hamilton in the suburbs, there will still be that desire for the urban experience. I think the flight of the urbanites has been a bit overstated and those same urbanites will fly back downtown once they are able again.  

So, in summary, here are my predictions for 2021: 

  • Inventory will eventually be on the rise, and interest rates will be as well.  
  • Get ready for a busy summer, but save some of that money because the market will wane to some degree going into 2022.  
NextHome Expands in Mississippi

NextHome Expands in Mississippi

Billy Dekemel

Pleasanton, CA — December 28, 2020 — NextHome is pleased to announce the expansion of NextHome Innovative Realty into Hattiesburg, Mississippi. This second office will build on the success of NextHome Innovative Realty’s first location in Slidell, Louisiana. The brokerage represents the sixth office location opened in Mississippi for the NextHome franchise and the 534th NextHome office opened nationally.

Located just 70 miles from Slidell, Hattiesburg is home to the University of Southern Mississippi and attracts homebuyers with its diverse economy, strong neighborhoods, and its central location. NextHome associates are looking forward to better serving a growing number of Mississippi listing requests. 

NextHome Innovative Realty is owned by the husband and wife team of Billy and Melissa Dekemel – dedicated real estate professionals with a passion for people-first service.  

Since opening their first NextHome brokerage in early 2019, Billy and Melissa have seen their sales volume almost double. In their first year, they reached just over $4 million in sales volume. Through the dedication of deep-rooted and experienced agents, NextHome Innovative Realty has achieved an $8 million sales volume this year. The accomplishment is even more remarkable in an area where average home prices hover around $175,000. 

Billy and Melissa credit their success to true client care.

“With this new location our clients can expect top-quality, top-service, 100 percent of the time,” Billy said. “We are dedicated to the concept of ‘Humans over Houses’ and that’s really what it’s going to be about in Hattiesburg.”

Billy found a love for real estate when he purchased and managed two of his own rental properties, and in 2008 he got his real estate license. Billy then launched a thriving career working for both boutique and national real estate firms in the Slidell area. It wasn’t always easy though.

“I think the toughest thing starting out was to get your name out there and letting people know this is your career, not just a hobby,” Billy said of those early years. “The biggest struggle other than getting a client base was getting people knowing that you are in real estate and you are in it to stay.”

Billy’s persistence and dedication to his clients paid off. In 2018, Billy found himself working with RE/MAX where he handled $4.2 million in transactions with 27 deals that year. However, he needed to take his commitment to his clients to the next level. That’s when Billy found NextHome. 

“It had that same family atmosphere that makes Slidell such a great place,” Billy said of his initial attraction to what NextHome had to offer. “People know your name. I’ve worked for big national companies where you very much seem like just a face in an office. NextHome has a very different and family-like culture. It really is what attracted me to NextHome as well as being a franchise and having all of the processes in place.”

Today, Billy and Melissa are dedicated to spreading that family-like way of doing business across southeastern Louisiana and southern Mississippi. 

“We operate our business based on what the client needs, not what we need,” Billy said. “We will do whatever we need to do to make things happen for them.”

Please join us in congratulating Billy and Melissa on their second NextHome office in Hattiesburg, Mississippi!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

Each office is an independently owned and operated business.

NextHome Platinum Properties opens in New York

NextHome Platinum Properties opens in New York

John & Fenella Kim

Pleasanton, CA — December 23, 2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome Platinum Properties, based in Great Neck, New York. The brokerage represents the 15th office location opened in New York for the NextHome franchise.

The brokerage is owned by entrepreneurial couple John and Fenella Kim. Together, they offer singular service for luxury buyers and sellers in the Long Island, Queens, Bronx, Brooklyn, New York City, and Westchester areas. 

In addition, John and Fenella can offer insights and sales services for commercial, condo, and co-op clients. As president and CEO, John will handle the brokerage’s strategic partnerships, sales, and business growth. Fenella will serve as NextHome Platinum Properties’s chief operating officer where she will use her extensive talents to build operations, technology, and back-end business strength. 

Licensed agents since 2005, the couple brings a history of entrepreneurial success and tech innovation to their NextHome franchise. 

John began his professional career in Cybersecurity, working in SouthEast Asia. For more than 10 years, John protected data and voice security for Fortune 500 companies, mission critical government agencies, and sensitive banking systems.

That career led him to a cybersecurity conference in Malaysia where he met Fenella. The couple eventually moved back to the United States to be closer to John’s family. 

Together, they founded Reliance Star Payment Services. The company broke new ground in 2003 when credit card processing services became a blossoming industry. John and Fenella recognized that Asian small business owners around the United States needed a credit card processing service that could fit their language needs. For the next 17 years, Reliance Star Payment Services became one of the New York area’s premier minority-owned businesses. As the business grew, it attracted large corporate accounts and government contracts. Eventually, John and Fenella were running a company of over 60 full-time staff with more than 300 sales partners nationally.  

Around 2005, John began to take a major interest in real estate. 

“We were minor investors in real estate at the time,” John recalled. “We had a small portfolio and I decided to delve deeper into the industry by getting my real estate license and selling. Working with a small team, I managed to sell a lot of properties, both residential and commercial. I was successful working for other people, but as an entrepreneur, I knew that the best way to leverage my talents was to one day open my own brokerage. Recently, Fenella and I sat down and we knew it was time.”

When it was clear their next venture would involve nurturing John’s love for real estate, they began researching their options. 

“Originally, I planned on opening my own independent,” John said. “When we really looked into it though, building out the different platforms, bringing in teams, working with third-party companies involved incredibly high costs. For us to hit the streets running it was going to take us a year.”

Then he discovered NextHome.

“The company had all the processes and platforms in place as well as the content,” John said. “I am a tech person – it’s what I’ve built my career on. I see that a lot of companies are falling back because they don’t have the streamlined technology that NextHome does. It costs a lot of money to get all that. To find a company that already had it all was wonderful. NextHome is a plug and play option.” 

Today, John and Fenella are positioning NextHome Platinum Properties to be the leading progressive real estate company in the Long Island region. 

“We want to find, recruit, and train new and top talent within our community,” John said. 

The business also gives John and Fenella an opportunity to make a lasting impact on their local veterans.

“When we asked veterans how we could help, we learned that the greatest need was post-service job stability and training,” John said. “When these soldiers come back from war, they don’t have anyone to listen to and guide them back into society. They don’t have the right jobs to feed their families. We are using the real estate platform to create jobs for our veterans who want to develop their civilian careers in real estate.”

The couple has committed $500,000 to sponsor sales licenses for a certain number of military service members each year who are passionate about a long-term career in real estate. They have expanded not just to veterans, but have included first responders, teachers, nurses, and anyone that has been devastated by COVID-19 and the pandemic. 

“We want these future associates to achieve some milestones,” John said. “We are not only helping them get a license but also providing the education and mentoring to turn this into a thriving career.”

When they aren’t building their business, John and Fenella enjoy spending time together and supporting their young kids in their various activities. The couple has been married for 15 years and together they have two children: Allena (13) and Branson (8). Some of their children’s activities include basketball, piano, Korean martial arts, hip hop dancing, and art. 

Please join us in congratulating John and Fenella on the opening of NextHome Platinum Properties in Great Neck, New York!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

NextHome announces new Long Island brokerage

NextHome announces new Long Island brokerage

Anthony Pellicane

Pleasanton, CA — December 17, 2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome Orangedot, based in West Babylon, New York. The brokerage represents the 14th office location opened in New York for the NextHome franchise.

NextHome Orangedot aims to serve buyers and sellers across the Long Island area focusing on North Babylon, West Babylon, Babylon, Lindenhurst, Copiague, Bay Shore, Brentwood, and the remainder of Eastern Nassau and Western Suffolk counties.  

The brokerage will focus its attention on single-family residential homes, helping the region’s middle-class workers find the perfect place to come home to after their commute from work in New York City. 

The brokerage is owned by New York native Anthony Pellicane. NextHome Orangedot is Anthony’s second partnership with the NextHome franchise. 

A lifelong New Yorker, Anthony’s career path has given him unique insights that he is happy to share with his clients and agents. 

Anthony started his real estate career in 2000 while employed with the New York Police Department. Upon his retirement, Anthony transitioned his full attention to real estate sales and in 2010 he opened Simplicity Homes Real Estate and in the following years opened other office ventures.

Today, Anthony’s new office is introducing a splash of eye-catching orange into West Babylon’s quaint neighborhood. His 1,700 square foot office on Little East Neck Road is designed to bring a sense of home and community. 

“When people come in, we want them to feel like they are home,” Anthony said. “Our customers and agents enjoy the inviting space we have created. At NextHome Orangedot we understand that this is one of the largest purchases our customers are going to make in their lives, so we want them to start out feeling as comfortable and close to home as possible.”

As he builds his flagship brokerage, Anthony is well-positioned to be a community real estate leader. 

“There are a lot of brokerages around here, but I want to make NextHome Orangedot a centralized resource for our client’s unique needs,” Anthony said. “The people who live here are hard-working Americans who deserve the highest level of customer service. We can give them what they deserve, we strive to make the home buying and selling experience a memorable experience. At NextHome Orangedot we connect the dots to your next home.”

Please join us in congratulating Anthony on the opening of NextHome Orangedot in West Babylon, New York!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.

After Years of Decline, Household Formation Rates Were Improving Pre-Pandemic. Now What?

After Years of Decline, Household Formation Rates Were Improving Pre-Pandemic. Now What?

  • Americans of every age group and ethnicity are forming households at lower rates than before the Great Recession.
  • The trend of fewer households began to reverse in 2018 and 2019.
  • There would be 5.7 million more households if today’s demographic groups formed households at the same rate they did in 2006.
  • The group with the largest number of missing households relative to 2006 is white 25- to 29-year-olds, whose headship rate dropped from 46.1% to 41.3%. The groups with the largest fall since 2006 in the ability or tendency to form households are Black 25-to-29-year-olds, whose headship rate fell from 48.4% to 39.3%.
  • Even at today’s lower headship rates, there will be 6.4 million more households in 2025, because so many millennials are aging into their late 30s.

There would be some 5.7 million additional households today if Americans formed households at the same rate they did in 2006, a testament to widespread difficulties in securing affordable, accessible housing over the past decade-plus but also a potential indicator of enduring housing demand to come.

Home values nationwide plummeted between 2007 and 2013, taking the U.S. economy with them, but have since come roaring back over the better part of the last decade as the economy gradually recovered from the Great Recession. But this recent years-long housing recovery was missing an accompanying recovery in newly formed households, with the number of households headed by almost every demographic group steadily declining. That decline finally showed signs of leveling off and reversing by 2019, on the eve of the pandemic, but that progress may prove delicate and could delay millions of Americans from striking out and making a home of their own into the next several years.

The simplest explanation for why household formation fell much more quickly over the past decade or so is that for much of that time, Americans faced a handful of unique financial challenges. First, massive amounts of savings and equity were lost in the 2008 financial collapse and subsequent foreclosure crisis, impacting the ability of both older generations to retire and younger ones to shield their children from substantial college debt. At the same time, job opportunities and incomes fell precipitously from 2007-2011, which has long-lasting effects on individuals’ ability and confidence to start a new household. And finally, at points during the recovery (notably from 2015-2017), rapid growth in home prices widely outpaced income growth over the same period, making it difficult to save for a down payment or the often substantial upfront costs of renting. Either way, would-be household heads of virtually all ages remained entangled with other family or roommates instead of creating a household of their own.

By 2018 and 2019, the broadening economic expansion seemingly began to finally outweigh these effects, with most demographic groups — especially twenty- and thirty-somethings — beginning to get their own homes at higher rates closer to historic norms. But even after the turnaround of the past two years, young Americans especially remain much less likely than prior generations to have a place of their own. The effect is most dramatic for 20-to-34-year-olds: Only 35% of this group were household heads in 2019, down from 39.2% in 2006. In other words, only 22.72 million of the 64.5 million total individuals in this group succeeded in becoming heads of their own household.

If this age group had succeeded in creating newly headed households at the same rate as people their age did in 2006, there would be 12% more, or an additional 2,817,000, households on top of that 22.7 million — bringing the total number of 20-to-34-year-old householders to 26 million. To put that in perspective, that “shortfall” of 2.8 million households is more than twice the number of new homes built in the United States in 2019, when 1,386,000 new homes were completed.

Despite the fall in the rate of new household formation, the housing market has still seen significant gains in the number of households, and will soon see even more, largely because of the size of the maturing Millennial generation. Even at 2019’s low age-specific headship rates, the surge of Millennials moving from their low-headship 20s into higher-headship 30s will mean 6.4 million more households by 2025, an increase from 130.5 million to 137 million, using Census population projections.

A Symptom of Slow Building, Eroding Affordability

That the decline in headship rates is so widespread across virtually all groups is a central signal that the housing market is struggling to provide enough affordable homes for all. If the decline in headship was largely limited to just those in their early 20s, that might be explained in part by more people in this group choosing to pursue higher education. But the decline in headship also happened for Americans in their 30s, 40s, and 50s. And within age groups, it is not explained by a changing composition as the population grows more diverse.

The narrative that younger generations are and will be delayed in life’s major events includes the assumption that they will eventually catch up,  ultimately hitting the same milestones as previous generations. But the ever-falling headship rate across all ages changes that narrative, and signals that many more may never hit those milestones, that housing fundamentals have changed and that household formation and homeownership are more difficult. The Great Recession and financial collapse that cost U.S. homeowners roughly $6 trillion in home equity wealth simply sped up the process.

Want More Households? Build More Homes

Home building collapsed during the Great Recession and remained at depressed levels for several years. More new homes were completed in 2019 than in any other year of the past decade, and still there were far fewer homes built last year than in any other non-recession year in the postwar era. Particularly when adjusting for population size, which is key for predicting household formation, we are now building only about 2.6 single-family homes per 1,000 Americans, compared to a historical average of almost 4. Some of the challenges holding back new construction include a shortage of buildable land and the financing to acquire it; shortages of labor, as job openings for construction workers remain unfilled; and onerous permitting processes that add time and cost to the construction process.

On the eve of the pandemic, there were promising signs of a significant rise in new home construction, with new home starts exceeding 1.5 million (annualized) each month from December 2019 to February 2020. Those numbers came crashing down in March but builder confidence has come roaring back, and now October 2020 once again saw construction begin at an annualized pace above 1.5 million homes, suggesting a robust pipeline of expanded housing supply in the near future.

New households are formed by both renters and home buyers, but the first-time home purchase in particular has gotten harder as saving for a down payment in an environment in which home price growth rapidly outpaces income growth gets increasingly difficult. Higher student debt loads and rising rent burdens contribute to savings difficulties. But even if first-time buyers managed to save the same share of their income as their parents’ generation, thanks to rapidly rising home prices and the steady increase in price-income ratios,  it would still take them years longer to save an adequate amount.

Turnaround, interrupted?

Despite the difficulties, progress was being made. Among 25-to-29-year-olds (the age range with the largest shortfall in households in 2017 relative to 2006 rates), the headship rate rose from a low of 37.1% in 2016 to 38.1% in 2019. And the increase was fairly uniform across race: The headship rate for white, Black, Hispanic, and Asian Americans & Pacific Islanders in this age range rose by 1.1, 0.7, 1.0, and 1.3 percentage points, respectively. This suggests that when America experiences a long-enough economic expansion — like the record-long period of growth that ended abruptly in March — then the economic freedom to set out and head a household at 2006 levels may just be within reach.

If and when the economy begins recovering again once the pandemic has passed, it may very well be that the best outcome will show that the decline in headship was only temporary and that demand for homes that may have been satisfied this year will simply be pushed into next year and beyond. Even so, in only a few short months, the pandemic has proven how delicate progress can be. Millions of young adults moved back in with their parents in the early months of the outbreak, and while recent data suggest about half of them have already moved back out, big unanswered questions remain.

Will the rest of Gen Z be able to keep setting out on their own, or remain set back for years to come like Millennials were in the wake of the Great Recession?

Learn more about our partners at Zillow by checking out their blog.

5 Ways to Handle Stress in a Real Estate Career

5 Ways to Handle Stress in a Real Estate Career

A real estate career can be interesting, exciting, challenging, rewarding, and stressful — sometimes all in the same day. In addition to dealing with all the moving parts of typical real estate transactions, real estate professionals find themselves responding to market and economic fluctuations and a variety of human emotions on a daily basis. Real estate is also a service-driven career with pressure to perform and please clients, creating another level of stress. Here are five tips that can help you avoid burnout:

1. Strive for balance.

It’s easy to slip into an all-work-and-no-play routine as a real estate professional. Between working around clients’ schedules, continuous access to technology, and staying on top of listings and transactions, you can quickly find yourself working around the clock. While you may have to tilt the scale in favor of your career when you’re starting out or during particularly busy seasons, it’s vital to find ways to maintain a wholesome work-life balance that enables you to relax, rewind, and recharge on a regular basis. If you’re finding it hard to find an equilibrium, try blocking out time on a daily, weekly, monthly, and quarterly basis for family time, hobbies, getaways, fun, and self-care. You’ll find you’re a better real estate professional when you’re leading a well-rounded life.

2. Practice healthy habits.

Making your health a priority can help you handle stress better and boost your immune system. Eating a nutritious diet and making time for regular exercise can be beneficial for both your physical and mental health. It’s also important to build time in your schedule for regular physician visits and check-ups, as well as for dental and eye care. Making healthy choices each day will pay long-term dividends in your energy level and your ability to cope with stressful situations.

3. Stay focused.

When things get hectic, it’s easy to get distracted, which can lead to more stress. As much as possible, try to stay organized and prioritize the most important tasks that you need to accomplish each day. Keep a list of your short-term and long-term goals, and filter everything you’re doing through those lens. Concentrating on moving forward can often lead to a sense of accomplishment, which may lessen any pressure you’re feeling.

4. Reach out.

When things get tense at work, don’t be afraid to seek help. Use friends and family as sounding boards, or go to colleagues for advice. Other real estate professionals can often relate to your experiences and share how they’ve handled similar situations. Look for more experienced agents who might be willing to mentor you or network by attending local association meetings and workshops. If your anxiety persists or worsens, consider making an appointment with a professional counselor.

5. Be prepared.

Know in advance that things may be stressful, and prepare by doing your homework and planning a strategy for handling stressful or frustrating situations ahead of time. For example, American Home Shield® home warranties can help you keep transactions on track, reducing stress for you and your clients. In addition to offering important budget protection for your buyers and sellers, an AHS home warranty can help you mitigate home inspection issues, streamline transactions, and minimize post-closing involvement.

For more information about the benefits of American Home Shield home warranties for your clients and you, contact your American Home Shield Account Manager or call 888.776.4663.

DIY tips are for informational purposes only. Learn more from our partners at American Home Shield by checking out their blog.

NextHome expands in Fair Lawn, New Jersey

NextHome expands in Fair Lawn, New Jersey

Nanci Lieneck

Pleasanton, CA — December 10, 2020 — NextHome is pleased to announce the newest addition to the franchise, NextHome New Beginnings, based in Fair Lawn, New Jersey. The brokerage represents the 13th office location opened in New Jersey for the NextHome franchise and the 531st NextHome office opened nationally.

Located just 10 miles from New York City, Fair Lawn is a charming Bergen County borough that attracts home buyers with excellent schools, charming neighborhoods, and convenient train access to New York City. NextHome New Beginnings will serve all types of residential clients across Bergen, Passaic, Hudson, and Monmouth counties.  

NextHome New Beginnings is owned by Nanci Lieneck, a real estate management professional who offers compassionate and caring service to each individual client. 

Nanci spent many years in regional management positions for various companies before embarking on her real estate career. She obtained her license in 2009 after realizing she wanted more variety in her professional life. 

“I loved that every client is unique and different,” Nanci said. “Each of these clients has something interesting about them, and I love getting to know their individual stories.”

Throughout the next 11 years, Nanci was able to build her brand and reputation with national franchises such as Sotheby’s, Coldwell Banker, and Keller Williams. During her career, Nanci had the opportunity to step into a management role and truly enjoys building her management and leadership skills. 

Nanci still recognizes her greatest accomplishments in the first-time homebuyers she was able to guide seamlessly through their home buying process. 

“I enjoy nurturing the relationship and helping people feel that this is more than just a transaction,” Nanci said. 

In 2020, Nanci began to think seriously about opening her own franchise. As she began to talk about her ideas with industry friends, someone mentioned NextHome. As she looked into the company, Luke immediately caught her eye. 

“I thought that Luke was so unique,” Nanci said of NextHome’s Frenchie Bulldog mascot. “I used to work at an animal shelter and we are a foster dog family.”

In addition to an attention-grabbing mascot, NextHome offered cutting-edge marketing that was crisp, clean, and everything Nanci wanted. 

“I found a franchise model that works,” Nanci said. 

Today, Nanci is leveraging NextHome’s tools and support to bring New Jersey clients unparalleled service.

“We truly believe that price point shouldn’t matter when it comes to the level of service you receive,” Nanci said. “Our tagline is: ‘When your Needs Matter.’ When somebody needs something, I am there to give them the highest level of service that they deserve.”

As she grows her brokerage, Nanci is looking for professional, full-time agents who will also treat each client as a unique individual. 

“I want somebody who truly cares about the result,” Nanci said. “Whether they are working with a first-time buyer, an investor, or with divorce, that client should be treated with the same amount of respect and time and effort, no matter what.”

Outside the office, Nanci is a mom to three dogs who she connected with through foster care.  In addition to her passion for helping animals, Nanci also contributes to the American Cancer Society and participates in Relay for Life. She is also a supporter of her local suicide awareness organization. 

Please join us in congratulating Nanci on the opening of NextHome New Beginnings in Fair Lawn, New Jersey!

 

Interested in being a part of the NextHome Real Estate Franchise? Contact VP of Sales Charis Moreno at Charis@NextHome.com.

 

Each office is an independently owned and operated business.