Last week we provided you a glance back at last year’s first eight trends as predicted by Stefan Swanepoel’s in the Swanepoel Trends Report 2006; published by RIS Media and RealSure. Today we evaluate the next seven realty trends by providing the executive summary used in the 2006 Report and then offering a short update on what happened during the year.

Although Stefan is always the first to say that he cannot predict the future, he has an uncanny ability to identify the trends, spot the opportunities and summarize the most important business events influencing the real estate industry.

So if you want to know what is going on, and most likely is going to affect your real estate company or career in the coming year or two, do yourself a favor and get a copy of his 2007 Report. It’s well worth the read.

2006 Trend 7: A Population on the Move
Although our population has always moved and impacted our industry Baby Boomers have caused or changed more trends than any other group. As a result of the cost of living and the availability of affordable housing a significant group of them may be moving and this potential put us at the initial stages of a huge population shift, one that could have a national impact, redefine cities across the US and create opportunities galore for the smart broker and agent.

UPDATE:
Baby boomers have been the biggest buyers of real estate the last couple of years – both in traditional suburban areas as well as vacation homes. This trend and its impact will continue beyond during the next decade as this group advances to retirement or a second career – maybe even in real estate.

2006 Trend 6: Impact of Immigrants and Minorities
Many immigrants come with little or no knowledge of the inner workings of the American real estate transaction nor, do they understand the vast number of terms used during the process. In many cases this is compounded by the fact that they are not proficient in the English language.  This poses a huge challenge for the real estate brokerage industry and one that creates a huge opportunity.

UPDATE:
Today 33% of the US population is non-white and by 2050 the US Census says that this number will grow to 50% due to strong immigration numbers. At the same time while global traveling and the Internet are making the world smaller, more and more people are buying real estate in countries other than where they live.  The demand for US property by international buyers is growing. Combine this with the fact, that non-English speaking Internet users have passed English speaking users and it is clear that the world of real estate is now global.

2006 Trend 5: The Growing Knowledge and Skills Vacuum
During the last five years the real estate industry has been absorbing an influx of newly licensed agents at a rate and number that has shattered all records. Simultaneously brokers and agents have been bombarded with new business models, the Internet, bundled services and specialization.  The need for true knowledge and selling skills has never been larger than today.

UPDATE:
There are unquestionably many licensed real estate agents.  It is also true that any additional education and training would be a positive step in improving the quality of agents, the level of ultimate consumer service and the overall image of the real estate agent and industry. Many new licensees have never experienced a down market and are now leaving the industry. This is a great opportunity for those remaining behind to get their house in order, improve their skills and take advantage of an excellent opportunity.

2006 Trend 4: The Entry of Outsiders
The industry’s current fear of entry by outsiders is not new.  Every time it’s rumored that some large player is going to enter the industry “the end” is predicted and scenarios of how the paradigm will be changed circle the continent. Increasingly their involvement has been larger and more prevalent. As the industry consolidates the next few outsiders could rewrite the rules of the real estate transaction.

UPDATE:
Never before has the real estate industry been so surprised, enamored and frustrated by the entry of one new company. Zillow, launched after the publication of the previous Swanepoel Trends Report, made headlines almost every month in 2006. The world’s largest real estate group, Realogy (previously Cendant) also made headlines when they unexpectedly announced earlier this month that they were for sold.

2006 Trend 3: The Proliferation of New Business Models
Competition in the residential real estate brokerage industry is immense and intense. Brokers and agents are increasingly bombarded with a large selection of new business models, products, commission structures and Internet options. There can be little doubt that something new today will again cause a major shift in the industry.

UPDATE:

The real estate brokerage industry continues to experience the emergence of new realty business models and 2006 was probably the biggest proliferation year so far. Although we don’t know yet who or what will cause the next major shift in the industry, companies such as Google, Realogy, Zillow and RealEstate.com all started on new paths during 2006, ones that may well lead to bigger things in 2007 and beyond.

2006 Trend 2: Rebirth of the Middleman – Lead Generation
There have been numerous attempts dis-intermediate or reduce the role of the agent in the home selling and home buying transaction. The recent strong growth of the lead generation initiative is raising concern among some as they feel the existing commission pie is being pre-sliced. Future dependency on these leads may also allow for price increases that will exacerbate the situation.

UPDATE:
What a hot topic MLS has become. Concerns by MLSs across the country, the investigation by the DOJ and the announcements by Zillow and HomeGain this month that they both now permit agents and consumers to list their homes for sale directly on their sites, all made headlines. Some even label this as the beginning of a national MLS and the collapse of the existing MLS system as we know it today.

2006Trend 1: Electronic Devices Take Center Stage
We have been dazzled with e-commerce, palm pilots, blackberries, bluetooth, m-life, t-mobile and more. Now the time has come to simplify and integrate all these individual devices into fewer, multi-function, more multi-task enabled devices. Digital cameras, PDAs, GPS, REDtablets, iPods, portable MP3 players and Blackberry are just some of the devices currently making the news and providing a promise of saving time and increasing productivity. For those who love gadgets, heaven is a place at CompUSA.

UPDATE:
The Internet and technology returned in 2006 with a vengeance. Devices continued to become smaller with more and more features being added. The real estate industry also expanded its wi-fi and broadband activities, bought iPods, started doing podcasting, learned about blogging, mapping and Google Earth, watched videos online at YouTube and read in awe about MySpace.  Yes, technology had the center stage in 2006.

So looking back Stefan gets an A+ for providing us a accurate glimpse into 2006 ahead of time, allowing many brokers and agents to prepare themselves for the abundance of changes happening in our industry.

The 2007 Swanepoel TRENDS Report go to www.RealEstateTrendsReport.com