Last week, two members of our team traveled to the Big Apple to attend the Inman Connect conference. They spent two days surrounded by, connecting with and learning from some of the best in the business: real estate industry leaders, agents, marketing masters and tech experts.

One of our core values at Andersen Group Realty is education. We’re firm in our belief that, in order to provide the level of service and care that our clients deserve, we ourselves are in-the-know about the real estate industry and our markets. To put it bluntly: as the experts, we have to know our stuff.

We make it a priority to attend conferences and events, study market data like fiends, and always maintain an appetite for learning. In exposing ourselves to events such as Inman Connect — where we learn from industry thought leaders and peers from around the globe — we set ourselves up to do our best work for clients. And at the end of the day, that’s our number one goal.

Here are the five most valuable takeaways from our time at Inman Connect:

1. THE 2019 MARKET WILL START STRONG AS HOME SALE PRICES CONTINUE TO TREND UPWARDS.

The real estate market began to shift slightly at the end of 2018. Looking ahead, we expect the 2019 market to start strong, with sales prices holding steady or slightly increasing the first couple months of the year. We predict they’ll soften later in the year, once the disparity between buyers’ and sellers’ expectations narrows and sellers adjust slightly to align with the buyers’ view of the market.

Throughout much of our market in Winchester, Lexington, Arlington, Medford and the surrounding towns, the number of home sales were down in 2018, due in large part to a continued inventory shortage. Despite the decreased home sales, several towns experienced sharp price increases due to high buyer demand. For example, the average home sale prices in Winchester and Arlington increased dramatically: the average sale price of single family homes in Winchester surpassed $1.3M for the first time in history (up 8% from 2017).

After 9 years of steady price growth, we are likely in for a correction, but the degree of that correction remains to be seen. The price growth is expected to be 2% nationally in 2019, which is significantly lower than in the past few years. Prices are growing the greatest in coastal markets, however, these markets are expected to see the biggest reversal (i.e., 10% down to 2%).

2. NOW IS THE TIME TO BUY.

Buyers have been hesitant, waiting on the sidelines for the right time to make the jump onto the market. They say there’s no time like the present and that sentiment applies perfectly here — now is the perfect time for buyers to jump and initiate a transaction. Inventory is expected to increase, which will provide buyers with more options. This increased inventory combined with the softened market should allow buyers to have more leverage than they’ve had in recent years.

2019 is an especially opportune time for “Move-up Buyers” (i.e., those looking to move into a larger home) because the differential between the sale price of a Move-up Buyer’s home and the acquisition price on the purchase of his/her new home is the lowest it will be for some time. Within certain price bands, sellers will be able to fetch a premium on the sale of their lower-value home, while also taking advantage of the downward pricing trend that sellers on the higher end of the market will experience this year.

3. CONSUMER CONFIDENCE IS KEY.

Many buyers predict a recession on the horizon. This assumption comes as a result of accepting forecasts of economists and news authorities as certain truths, and while heeding such predictions can certainly be wise, it can also lead to damaging your selling or buying success in the long run. The more confidence buyers have in the state of the economy, the more willing they’ll be to invest in the market. Their uncertainty ultimately undermines their confidence, which then negatively influences the prices they are willing to pay for a home.

4. THE DISSONANCE BETWEEN BUYERS’ AND SELLERS’ EXPECTATIONS IS CAUSING A TRANSFORMATIONAL MARKET

Buyers and sellers are seeing the market very differently — especially at higher price points.

More and more we are seeing buyers wait around for a bargain, while sellers are expecting the price of their home to continue increasing. This disparity is resulting in a Transformational Market: a market shifting from a “Seller’s Market” to the beginning of a “Buyer’s Market”. Several factors are at play here: interest rates, political dysfunction and stock market volatility, to name a few. That said, luxury markets are most apt to see price reductions.

5. TAKE ADVANTAGE OF EMERGING TECHNOLOGY, BUT NOT AT THE EXPENSE OF HUMAN CONNECTION.

There’s no doubt that it’s an exciting time to be in real estate. We have unlimited access to new and emerging tech at our fingertips to help us better understand our markets and serve our clients. Now more than ever, clients expect quick and seamless experiences, and it’s crucial that we capitalize on available technology to streamline the home buying, selling and investing experience for them.

However, it is just as essential – maybe more so! – to keep interpersonal connections at the center of our work. After all, real estate is a people to people business: success in this field is heavily influenced by how well you understand and relate to your clients. In 2019 and as technology advances, remember not to rely too heavily on apps, videos, chat platforms and social media… because, if we’re not careful, these will replace the human experience. Use technology to streamline your systems and processes, but prioritize building, nourishing and maintaining your personal relationships — because these will always matter more than any new app on the market.