The real estate franchise industry is growing, or it will be in the coming months. This industry, which includes far more companies than just real estate brokers, is seeing significant improvement in its overall bottom line. The reason is simple. The US housing market is on an upswing and its evident that this trend is likely to continue. That means good things for the entire industry.
What Makes Up the Real Estate Franchise Industry?
Aside from your traditional brokerages, which provide real estate agents who help to buy and sell homes, this industry also includes property management firms, transition services, moving companies, storage franchises. Add to this the number of movers, maintenance professionals, and renovation companies that are also a part of the industry and have a very large group.
Is the Market Improving?
The US housing market is seeing growth. Over the last several months, a drop in housing inventory in many areas has led to a boost in housing prices. As home buyers continue to take advantage of the very low interest rates still present in the market, there's growth occurring in many regions.
According to the consulting firm Deloitte, 2014 looks promising as well. While it is likely to have a more moderate level of improvement than in 2013, the real estate industry continues to see promise moving forward. In 2013, growth in transaction levels, asset pricing, and capital availability all helped to promote the housing market further.
Are These Franchises Really Improving?
Companies are seeing the effects of these improvements across the entire real estate franchise market. It's clear to see this by looking at a few key franchises. For example, the moving company, Two Men and A Truck, spent 20 years building its franchise only to see its first declines in revenue in 2008 and 2009. Though it was a hard hit losing more than 10 percent of its business during that time, the company is back. In fact, it's expanded to now include more than 250 units in 36 states.
Another key sector of this industry is in home flipping. Companies purchase undervalued homes, improve them, and get them back on the market at a profit. Many of these companies, including HomeVestors, saw a significant fall in their ability to turn a profit as housing values fell. The company has now seen significant improvements, even up over 60 percent over those troublesome years.
While real estate firms such as Coldwell Banker, Re/Max and Century 21 are all franchises that have seen significant improvements in the last year or so, so have other real estate franchises within the industry. For those who are wondering if the future still looks bright for 2014 for these industries, it is likely to be a positive upswing. Though experts expect more moderate levels of improvement, growth in the housing industry is expected to continue into the future, providing each of these franchises with opportunities to grow as well.
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