According to an educator in NYU’s finance department, if your South Forsyth County house has experienced the kind of growth that’s been typical over the past couple of years, your Facebook friends will be more likely to buy a home themselves. Improbable as it sounds, Dr. Johannes Stroebel says that his research shows this as a measurable probability because “friends’ experiences…influence personal behavior” when it comes to their housing decisions.
The results of Dr. Stroebel’s study emerged from a panel discussion held this month. The conversation took place in Washington, DC, as part of the annual Realtors® Legislative Meetings & Trade Expo. Most of the headlines from that gathering centered around the midyear forecast by National Association of Realtors chief economist L. Yun. He sounded the kind of optimistic note that will be music to local homeowners—particularly if they are planning to sell their own South Forsyth County house anytime soon. After several years of wage growth that exceeds home price growth, the two are now aligning more rapidly than heretofore. The bottom line is that “home sales should be much stronger.” The continuation of low mortgage interest rates adds to that probability.
NAR optimism aside, the announced Facebook effect prompted further discussion. It was shown that renters whose Facebook friends experienced a 5% growth in their house prices over the past two years have a 3% greater chance of buying their own home within the next two years. The effect is more pronounced in “socially-connected counties,” where positive experiences “were even shown to increase the size of a home” that was purchased.
Whether or not you believe yourself to be sufficiently “socially connected,” it’s hard to quibble with Dr. Stroebel’s finding that “individuals do discuss property value with their friends, and this changes behavior.”
For an up-to-the-minute update on South Forsyth County home sales in today’s market, you don’t need to consult your Facebook friends—just give me a call!
This Cumming GA Real Estate blog is hosted by Gayle Barton of BERKSHIRE HATHAWAY HomeServices Georgia Properties.
I specialize in Real Estate sales in the following Forsyth County and North Fulton County cities: Cumming, Suwanee, Alpharetta, Milton and Johns Creek. Other north metro-Atlanta suburbs are serviced by request, so please call.
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Gayle Barton Cumming GA Real Estate | Forsyth County Real Estate