The economic recovery will spur demand for housing starts, driving revenue growth
Los Angeles, CA (PRWEB) December 14, 2012
During the housing bubble, the Conveyancing Services industry experienced strong revenue growth as a result of low interest rates. However the housing market crumbled in 2007, and the resulting recession caused a declines across all industry key statistics. In the five years to 2012, revenue decreased at an average rate of 3.9% annually to $13.3 billion. Through 2012, industry revenue is expected to grow 8.3% as existing home sales and housing starts begin to increase. Industry services primarily relate to property title transfer, mainly conveyancing, title abstract, settlements and title searches. The industry also includes establishments that provide process server, patent agent and paralegal services. “Industry performance is closely related to real estate activity, namely sales and mortgage financing and refinancing,” says IBISWorld industry analyst Kevin Culbert. “Its reliance on the real estate market has caused volatility over the past five years because the number of houses sold has a direct influence on revenue.”
The poor operating environment caused Conveyancing Services industry players to take a variety of measures to maintain profit, including closing branch offices and reducing employee head count. Some firms have left the industry altogether, due to the steep decline in demand through 2011. In the five years to 2012, IBISWorld estimates that the number of firms operating in this industry has decreased at an annualized rate of 2.5% to 23,114. Highlighting this consolidation, in November 2008, LandAmerica Financial Group filed for Chapter 11 bankruptcy. The move led to further industry consolidation as major player Fidelity National Financial signed a merger agreement to acquire LandAmerica's underwriting businesses. “The industry has a low level of concentration and is highly fragmented,” adds Culbert. “Title and escrow regulations differ in each state, which makes attaining economies of scale on a national level more difficult.”
In the five years to 2017, the volume of existing home sales and housing starts will increase as the economy recovers. A stronger operating environment will increase industry profit, especially after the cost-cutting measures taken by many major players since the recession. This increase in profit will also bring new entrants into the industry. For more information, visit IBISWorld’s Conveyancing Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises companies and legal practitioners (except lawyers and attorneys) that provide specialized legal or paralegal services. Conveyancing, which is the transfer of property rights involving an attorney to represent each of the buyer, seller and mortgage holder, is a major part of the services offered by these establishments.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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