Between increasing rates and low housing inventory, mortgage and real estate professionals can expect a slower year. Indeed, mortgage applications are trending down. Although 2020 turned out to be a record year for the housing market, 2021 may hold a different outcome. This will likely require a shift in strategy.
Fortunately, there are a few trends that might help salespeople prepare for the upcoming year. By creating strategies to engage with emerging markets, salespeople can anticipate future business needs to set themselves up for success.
The “New Normal”
The economy and housing industry are changing. Not only are there emerging markets of homebuyers, but there are new solutions to help streamline the mortgage applications and home buying process. Between new target markets and new technology, lenders have plenty on their plate. It’s critical salespeople consider new trends in order to create a plan that will bring success in 2021 and beyond.
Evaluate Your Tech Stack
Not only did 2020 bring big changes in healthcare and the economy, it changed technology as well. Indeed, there was an influx of new technology solutions to fill the new needs in the market. In order to compete in the current environment, it’s critical that your tech stack is ready to support you. Take time to review your current tech stack to make sure it’s able to provide a great customer experience. Not only will this make it easier for clients to work with you, but it will make it easier to close deals while still having time to refill your pipeline.
Diversify Your Solutions
It’s no secret that the current administration and many private groups are focusing on more diversity in home ownership. Additionally, changing demographics are naturally leading to a more diverse pool of applicants. Indeed, according to a recent report from the Urban Institute, Hispanic people will comprise 56 percent of all new homebuyers by 2030. In order to prepare for this shift, some key technology companies are moving towards bilingual solutions. You can take similar steps to prepare for this shift as well. To prepare for this group, focus on:
- Technology solutions that support bilingual resources
- Evaluate credit guidelines standards
- Promote resources for first-time homebuyers or down payment assistance
Because your CardTapp solution is customizable, you can adjust button labels in any language to appeal to specific groups of borrowers.
Expect Mortgage Applications from New Sources
From Millennial ready for their first home to Baby Boomers waiting to downsize, generational changes are here. Indeed, professionals may need to create a plan to appeal to Millennial homebuyers. This generation is large and on the cusp of making their home ownership dreams a reality. To prepare for this group, focus on:
- Connecting with professionals in this generation to keep up with the trends
- Creating a strong social presence
- Building positive ratings and reviews online
Although the Baby Boomer generation looks poised to delay downsizing due to the lack of inventory, it’s likely that the downsizing wave will come at some point. As with the other industry trends, this creates an opportunity to highlight new resources. Consider:
- Creating a resource of key things to keep in mind when downsizing
- Working with referral partners to coordinate growing and downsizing home buyers
- Building networks in neighboring markets that might have more inventory
React Quickly to Market Changes
Ultimately, your success hinges on your ability to anticipate and prepare for market changes. As you evaluate your strategy for the remainder of the year, be sure to consider how your CardTapp solution can help.