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New Year, New Issues: The Most Influential Factors of 2018

New Year, New Issues: The Most Influential Factors of 2018

Constantly ebbing and flowing with the day’s global events, real estate news seems to be always changing, making the task of keeping up with shifting trends a continuous challenge for agents. What trends are essential to your future success, and which are better left in the rearview mirror for the upcoming 2018 real estate selling season?

Real Estate Trends to Take Notice of in 2018
Of all the trends in real estate news to heed, these will be most influential to your sales success in the coming new year:

Online Marketing
Across the board, buyers and sellers are looking online first. Online sales and marketing are no passing trend, with those agencies with online branding dominating the realty arena, and those offering previously coveted inside information to everyday consumers leading the pack.

Social Networking
As with an online presence, marketing through today’s top social networks enables realtors to reach a far larger audience faster and with less hands-on effort. Providing information via casual online posts, photos, videos and links is now one of the ideal paths for marketing homes for all parties, from time-crunched agents to buyers and sellers.

Specialty Sales
Agents with a specialty genre will be center stage in the coming year, from those specializing in video listings to those showcasing luxury, ‘green’ and automated homes, and even agencies catering to Bitcoin purchases.

Home Automation
2018 will put home automation in the spotlight as technology becomes more affordable for the middle class – and more user friendly. Agents will need to stay ahead of the curve on this in order to put this technology to use to gain an edge over the competition.

Generation Z
Generation Z is entering the market, soon to snag the purchasing power of Gen-Y with yet to-be-determined habits.

What real estate news is on the radar for 2018? From trends and legislation to industry-leading tools and tech, stay at the forefront with PropertiesOnline.

The Real Estate Forecast for 2018

Forbes Commentator on the 2018 Real Estate Forecast

In real estate news, the national real estate forecast for 2018-2019 is pointing to declining demand for new (not replacement) single family dwellings (houses, apartments, condos, and mobile homes). What are the driving forces behind the prediction for housing market deceleration?

Population Growth Slams on the Brakes
The biggest driver of housing demand growth, population growth is at its slowest in recent years. Last year, the U.S. population rose a meager 0.7% – the lowest gain on the books since 1937. Before the last recession, growth hovered around 1.2%, which isn’t as close to that 0.7% as you think: At that growth rate, housing built for new demand is far less than those needed to accommodate 1.2% population growth, a mere 58%. Forget old housing start averages. Look to the previous year’s builds and expect moderate additions.

Pent-Up Demand is Puttering Out
Non-rental housing of mostly single-family homes and some condos is currently at an average vacancy rate of 1.4-1.5%, compared to 2.9% during the recession. Supply is no tighter than normal, and though nationwide price increases are a bit on the high-side, a housing bubble is not imminent.

Employment and Wages are Out of Gas
With job growth relatively slow and wage inflation yet to accelerate, people are less able to live on their own, whether that means moving out of a parent’s basement or absconding from an ex-spouse. Though wage rates are expected to improve next year, the change is not expected soon enough to influence demand for housing.

Local Fluctuations Pose Obstacles
Though these forces drive new demand nationally, local fluctuations should be expected. Real estate news pointing to an excess of homes in Flint or Detroit will not help those searching for homes in Miami or NYC. Looking to the above demographics in your state or metropolitan area may reinforce or negate this ‘new build’ barometer.

What’s fueling your sales? Boost your performance with Properties Online today.

Net neutrality... what's going to happen?

Potential End to Net Neutrality and the Impact on Small Real Estate Businesses

In stunning real estate news: On Thursday, December 14, 2017, the FCC voted to end net neutrality. What could this mean for small and mom-and-pop brokerages?

Far-Reaching Implications
Purported as a return to free market principles, the decision led by U.S. Federal Communications Commission Chairman Ajit Pai to repeal net neutrality has many technologists and activists alarmed. Negating the ruling that defines broadband Internet as an essential utility and sending the two-year old ‘Open Internet Order’ up in smoke, it means that Internet service providers (ISPs) will no longer be prohibited from charging fees for access to certain websites, and blocking or slowing down others.

Internet Costs Expected to Reflect Cable ‘Bundling’ Setups
Just as cable providers charge extra for premium stations like Showtime and HBO, Internet users may find themselves shelling out for specialized website lineups, with ISPs charging more for sites in high-demand… Or smaller websites like mom-and-pop brokerages and independently owned news sources.

If consumers don’t want to pay for the privileges of higher speeds in these packages, Internet providers could slow down the loading of those sites outside of bundled packages under the new plan. According to real estate news, Portugal is currently using such a structure, and Internet users and small business owners are paying the price.

Consumers May Not Be the Only Ones Forking Out
In addition to consumers paying bundled and extra per-site fees, small business owners may have to open up their wallets as well, greasing the palms of the ISP industry for access. Brokers and real estate services may be forced to pay extra to reach audiences, as well as to provide their staff access to websites necessary to conduct their business.

There are many concerns surrounding any such legislation that may stack the deck against smaller companies in favor of big business – and potentially ‘paid prioritization’ arrangements between ISPs and corporate affiliates.

What real estate news is turning your world upside down? Get proactive with the help of PropertiesOnline.

The real estate industry and homeowners have benefited from substantial tax deductions for decades. However in the latest real estate news, changes to these deductions are coming into the light now that the proposed tax plan has been signed into law. What will the fallout to the industry and home ownership be?

The Proposed Tax Change and Potential Impact to Home Buyers

The real estate industry and homeowners have benefited from substantial tax deductions for decades. However in the latest real estate news, changes to these deductions are coming into the light now that the proposed tax plan has been signed into law. What will the fallout to the industry and home ownership be?

Introducing ‘The Realtor Party’
In efforts to ‘save home ownership’ and leave homeowners as a favored class in the tax code, realtors nationwide protested, lobbied legislators, and warned clients about the threat of unfavorable real estate market impacts under the new tax law.

How the Changing Tax Codes Could Reduce Home Prices
According to real estate news, the new tax law could make home ownership less attractive, raising the cost and potentially depressing property values. What tax changes could bring this to pass?

– Property Taxes
The new law places a cap on the combined state and local income/property taxes with a single deduction limited to $10,000.

– Mortgage Interest
Under the new law, the standard deduction is almost doubled, so fewer homeowners will itemize, losing the full benefit of the mortgage interest deduction.

– Capital Gains
The qualification time for capital gains exclusions could increase, likely reducing transaction volume as sellers wait longer to list.

– Mortgage Rates
The $1-trillion+ the new law may add to the federal deficit could result in more rapidly rising mortgage rates according to economic theory, raising the cost of financing.

Big Winners… & Big Losers
According to some economists, smaller markets could feel little-to-no effect, while those in high-cost, high-tax areas like NY and NJ could see significant declines in home values: As much as 14% by 2019. Other real estate news analysts expect little effect, however, as many households already choose not to itemize. Rising demand/limited supply are expected to continue to drive the market upwards.

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Boomerang Buyers Need Extra Help in the Home Buying Process - What to Know

Boomerang Buyers Need Extra Help in the Home Buying Process – What to Know

Frozen out of home ownership for years, many of those affected by the subprime mortgage crisis are now ready to buy again. These boomerang buyers with a foreclosure history are excited about their salvaged credit scores, which translate into lower interest rates. Marketing real estate to those who need a guiding hand can be a win-win.

Boomerang buyers will play a major role in the 2018 real estate trends. Countless dings fall off credit reports every day, with the required seven years approaching or already passed for those with short sales or foreclosures in 2008-2012.

Helping Buyers with a Foreclosure History

Previous homeowners have already experienced the benefits of owning rather than renting, but they have obstacles to overcome. Boomerang buyers tend to be motivated yet they are hesitant about the process.

Some considerations for buyers with a foreclosure history:

– Waiting periods of 2 to 5 years must have elapsed.

– Prequalification often involves more paperwork than for other buyers.

– Boomerang buyers need reassurances and concrete evidence of why buying again will be more successful for them.

Reaching Boomerang Buyers

It’s worth noting that the 2018 real estate trends involve boomerang buyers in the age group between Millennials and Baby Boomers. This means that your real estate website design and print materials shouldn’t be tailored too heavily toward retirees and first-time buyers.

By definition, these boomerang buyers have been renters for several years now. A key tactic will be capturing leads and using data to drive drip marketing and other campaigns to reach renters whenever they are ready to buy again.

A solid web presence goes a long way. This group will heavily use Internet research for testimonials and reviews to choose their agent, broker, and lender.

Properties Online designs solutions for real estate SEO, custom websites, home video tours, and marketing tools to capture and convert more leads, with a high level of tailored marketing for each of your listings.