By all counts, 2024 was a lackluster year for real estate and refinance transactions for many title agents, but the New Year promises an uptick. as pent-up demand brings more people into the general real estate market and current homeowners who have put off refinancing for cash-out necessities jump back in.
Here are the predictions, according to the Mortgage Bankers Association:
- Mortgage origination volume will jump from 2024’s $1.79 trillion to $2.3 trillion
- Refinance volume will hit $600 billion, nearly tripling 2023’s refi market
- Originations will increase 18%, purchases up 11% and refis up 37%
As title agents prepare for a more robust market ahead, it’s crucial to also prepare for who is likely to be entering the market in 2025. This includes being prepared to serve clients who are either foreign owners, immigrants or newly naturalized citizens, all who will certainly be more comfortable jumping into a complex transaction in their own language.
Foreign-born homeownership in the U.S.
According to the Joint Center for Housing Studies at Harvard University, the U.S. foreign-born population has quadrupled since the 1960s.
“In 2021, one in seven US households were headed by a foreign-born resident,” the Harvard report noted. “Around half of these foreign-born residents have naturalized as citizens. Foreign-born residents comprise a growing share of the United States housing market: research projects that foreign-born households will become the primary source of new housing demand by 2040.”
The U.S. Citizen and Immigrations Services (USCIS) reports that 7.7 million immigrants have become naturalized citizens, just in the last decade.
While the reality is that immigrants and new citizens may struggle longer to become homeowners, the Census Bureau, shows that by age 45, children of immigrants match native children in homeownership rates, a testament to their commitment to this fundamental American dream.
Household formation also points to the fact that in the next decade, we are likely to see homebuying increase among foreign-born residents and their children.
According to the Census Bureau, “Foreign-born people have accounted for about one-third of all net household formations over the past two decades, and slightly under 30 percent of all gains in owner-occupied housing. Fully half of all household growth between 1994 and 2014 by under-30-year-olds came from 2nd generation children of immigrants, and another 35 percent from immigrants themselves.”
Gathering resources for foreign-speaking clients
The number for homebuyers for whom English is a second language is destined to grow in the coming decades. Title agents can prepare now by creating marketing and informational materials in multiple languages, as well as understanding what resources are available to assist foreign-speaking homebuyers and sellers.
If you want to expand your expertise to include buyers and sellers who speak a variety of languages, Alanna is the perfect addition to your technology repertoire. Alanna’s translation ability allows your employees to type a message in English and it gets relayed to your customer in whatever primary language they speak. Communicating with a non-native speaker has never been easier, and it’s just one of the many benefits Alanna brings to the table for title companies.
Contact us today to learn about Alanna’s translation services that will help you close transactions with foreign-speaking buyers with confidence.