SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released First American’s proprietary Real Estate Sentiment Index (RESI) for the fourth quarter of 2019. The RESI is based on a bi-annual survey of independent title agents and other real estate professionals, providing a unique gauge on the real estate market using the crowd-sourced wisdom and expertise of real estate experts.
Chief Economist Analysis: Millennial Demand for Efficiency Fueling Fintech InnovationShow Full Article
Are you looking for VA's? Want to hire a Virtual Assistant? You're just one step away. Our system will help you get the right Assistant for your Business. It's easy and relaible way of getting connected with an Assistant. Register Now.
- or -
Are you an Assistant? Want to offer your service virtually? Register as a Company and get connected to clients.
The Virtual List process is Simple! Want to know how?
Simply register and post your task sample as requirement on Request Quote tab, when you are looking to hire a Virtual Assistant Company.
And, when you are offering your VA services. Register and Send Quotes on the submitted request. It is just that simple. Prospects will review your proposal and get in touch directly.
Disclaimer: We do not charge any type of commission or fees for the service.
Our service is Free.
“The 2019 housing market turned out to be surprisingly strong, driven by a variety of favorable dynamics. Millennial-driven, first-time home buyer demand continued to rise, the economy reached its longest expansion in U.S. History in the third quarter of 2019, and rising wages pushed household incomes higher,” said Mark Fleming, chief economist at First American. “Mortgage rates, which began their descent in December of 2018, continued to fall through September 2019, and have remained near historic lows since. In the second half of 2019, higher incomes and low mortgage rates increased home buying demand while supply remained tight, fueling faster house price appreciation.
“Millennials, the largest group of prospective home buyers, expect greater efficiency and convenience in their home-buying experience. In the strong sellers’ market of 2019, the demand for greater efficiency accelerated as more home buyers felt pressure to settle deals quickly before opportunities fade away,” said Fleming. “Given these trends and market forces, as part of our bi-annual First American Real Estate Sentiment Index, we recently surveyed title insurance agents and real estate professionals across the nation for their perspective on how financial technology (fintech) can improve the home-buying process.”
Security Remains the Priority
“In the fourth quarter of 2019, we asked title agents and real estate professionals the same question that we asked one year ago: what financial technology will have the most impact in helping home buyers close their transactions faster and more efficiently? One year ago, 45 percent of the title agents and real estate professionals surveyed agreed that the most important financial technology was secure collaboration and communication portals between all parties to the real estate transaction,” said Fleming. “This remained true in the fourth quarter of 2019, as 35 percent of respondents still considered secure collaboration and communication portals between all parties to the real estate transaction the most important.
“One of the major trends affecting the real estate industry may explain why the 2018 and 2019 survey findings were consistent – the rise in wire fraud,” said Fleming. “Survey respondents indicated that buyers would benefit greatly from a secure platform that allows them to correspond with lenders, real estate agents, escrow officers, and other parties involved with the real estate transaction.”
Moving from Wet-Signed Documents to a Paperless Real Estate Closing
“A faster, more efficient closing process is very important to prospective home buyers. It’s unsurprising then that 28 percent of percent of title agents and real estate professionals surveyed believe that hybrid eClosings will have a large impact in helping home buyers close their transactions faster and more efficiently,” said Fleming. “Since many documents need to be signed in a real estate transaction, a hybrid eClosing means that many documents may be reviewed and eSigned in advance of the closing, while some documents must be wet signed in person. The benefits? A faster and more streamlined closing experience, and reduced risk of manual errors, just to name a few.
“Similarly, 17 percent of title agents and real estate professionals surveyed believe that remote online notarization will have a large impact in helping home buyers close their transactions faster and more efficiently,” said Fleming. “Remote online notarization allows a notary to notarize documents remotely over the internet via tamper-evident digital tools, the latest fraud prevention technologies, and live audio-video conferencing. This technology already exists, and has been accepted as an alternative to traditional in-person notarization in several states.”
Alexa, Find Me a Home
“Another 11 percent of title agents and real estate professionals indicated that tools for process efficiency and the automation of routine tasks, such as customer service chat bots, would help deliver a more efficient home-buying experience. With techy savvy millennials looking to buy their first home, the concept of ‘responding too fast’ does not exist,” said Fleming. “With more and more prospective home buyers searching for homes and information online, chat bots can help real estate agents engage with potential customers as they are browsing online listings at any time of the day. Additionally, chat bots and voice-based virtual assistants can help answer customer questions instantly, providing a more efficient home search process.”
Are iBuyers Changing the Market?
“Finally, 8.5 percent of title agents and real estate professionals believe that the growth of iBuyers is going to be the most important innovation that drives transactional efficiency for consumers. An iBuyer is a real estate company that enables homeowners and home buyers to quickly buy or sell a home, through the use of technology,” said Fleming. “iBuyers buy homes directly from the homeowners and sell them directly to home buyers, often without using a traditional real estate agent.
“While the growth of iBuyers certainly offers a new way for people to buy and sell homes, the model represents a small share of the market compared to traditional brokerages. It may not be the technology to have the most impact on the housing market in the near term, but it is growing quickly and gaining importance in today’s sellers’ market.”
Fintech Adoption Approaching Fast
“Title agents and real estate professionals are aware that fintech can make real estate transactions faster and more accessible, and they are planning to adopt specific fintech in the near future,” said Fleming. “In fact, 67 percent of respondents intend to adopt these technologies in the next 12 months, and nearly a third (31 percent) of title agents and real estate professionals will require software support in just 3-6 months.
“Fintech applied to the real estate transaction can streamline time-consuming processes, increase security and improve the home-buying experience for potential home buyers,” said Fleming. “The fintech revolution is here, and it is here to stay in real estate.”
Market Outlook Strengthens
“In the fourth quarter of 2019, title agents and real estate professionals had a positive outlook for the overall purchase and refinance markets. Continued economic growth and expectations that another year of low mortgage rates and further household income growth in 2020 will result in house-buying power gains for potential home buyers, gave survey respondents several reasons to have a more optimistic view of the purchase and refinance markets,” said Fleming.
“As for the refinance market, as might be anticipated, low mortgage rates significantly boosted the outlook for growth in refinance transactions compared with one year ago (when rates were rising) by over 120 percent,” said Fleming. “According to a recent study, approximately 6.8 million borrowers could benefit from refinancing, resulting in a sunny outlook for refis, as rates are expected to remain below four percent in 2020.
“Title agents and real estate professionals are more optimistic about price appreciation growth now than they were at the end of 2018, with survey respondents expecting residential house prices to increase by 2.7 percent in the next year,” said Fleming. “With greater house-buying power driving more demand for homes in a market with limited homes available for sale, house price appreciation is likely to increase in 2020.”
Fourth Quarter 2019 Real Estate Sentiment Index
What Do the RESI Number Values Mean?
Title insurance agents and real estate professionals are experts in their local real estate markets and have valuable insight. First American’s proprietary Real Estate Sentiment Index is based on a bi-annual survey of independent title agents and other real estate professionals, providing a unique gauge on the real estate market using the crowd-sourced wisdom and expertise of real estate experts.
The next release of the First American Real Estate Sentiment Index will be posted in June 2020.
The methodology statement for the First American Real Estate Sentiment Index is available at http://www.Firstam.Com/economics/real-estate-sentiment-index.
Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2020 by First American. Information from this page may be used with proper attribution.
About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $5.7 billion in 2018, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2019, First American was named to the Fortune 100 Best Companies to Work For® list for the fourth consecutive year. More information about the company can be found at www.Firstam.Com.
Thank you for your valuable time considering TheVirtualList.com as your Virtual Assistant Community Forum. The team has curated more valuable news on "Security, Efficiency To Drive Fintech Innovation In 2020, According To First American Real Estate Sentiment Index". Are you excited and wanna learn more! Excellent here are more articles on Virtual Assistant Services For Real Estate.