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Real Estate Industry News

Rent Control and Other Real Estate Trends To Watch Out Fors... Are You In One?

Rent Control and Other Real Estate Trends To Watch Out For

Staying on top of current trends is an important part of successful real estate selling. What will buyers, sellers, investors and construction firms be doing in the new year? Experts offer these predictions on real estate trends to keep an eye on in 2020.

1. Mortgage rates continue to drop.

At the close of 2019, the interest rate for a 30-year fixed-rate mortgage was at an average of 3.99%, making it a good year for first-time buyers and refinancers. With trade wars going strong and global economic growth stagnating, there’s a good chance the Fed will cut interest rates at least twice. As of mid-January, average rates were already at 3.79%.

2. Rent control spreads to more areas.

As many people struggle to find affordable housing, several states are turning to rent control. Oregon, California and New York all passed rent control bills in 2019. Other high-cost housing states such as Illinois and Washington are on a “watch list,” while rent control has become a talking point for a number of Democratic presidential candidates.

Rent control has already caused multifamily housing investors in affected markets to rethink and even reduce their investments, an issue that’s likely to occur in other states as they enact legislation.

3. Builders remain focused on starter homes.

Post-recession, builders turned their efforts to the more profitable segment of custom homes for well-to-do buyers. As a result, demand by first-time home buyers has remained strong, but the inventory of starter homes has dried up.

Builders specializing in entry-level properties saw double-digit percentage increase in sales last year, a trend likely to continue as supply tries to catch up with demand.

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Experts Predict a Strong Job Market and Low Mortgage Rates Will Fuel 2020’s Housing Market

Heading into 2020, a strong job market and low mortgage rates should bode well for the housing market. But thanks to a shortage of inventory and new listings, the positive real estate trends may turn out to be a mixed blessing.

Golden Age of Home Buying?

Unemployment and interest rates are both at their lowest levels in years. While widespread economic uncertainty in 2019 seemed likely to push mortgage rates north of 5 percent, rates actually declined to an average below 4 percent. In contrast, at the turn of the millennium mortgage rates were averaging 8.5 percent.

The National Association of Realtors Makes Their Predictions

According to the National Association of Realtors, mortgage rates are expected to remain low during the year. NAR chief economist Lawrence Yun says 30-year fixed mortgages will stay below 4 percent and finish the year around 3.8 percent.

Increases in new-home sales are projected to hit a 13-year high of 11 percent, but supply of existing homes will continue to be tight, resulting in a more modest 4 percent increase. Yun calls this a “healthy development for potential home buyers,” as prices will remain relatively affordable.

Despite the optimistic outlook, Yun does offer a word of caution. Increases in economic activity and inflation may trigger a corresponding rise in interest rates.

Real Estate Experts Weigh In

Other experts tend to agree with NAR’s outlook. Realtor.com and Redfin both anticipate tight inventory in the face of strong demand. As a result, the biggest challenge facing buyers will be finding homes, not affordability. In terms of mortgage rates, Bankrate.com chief financial analyst Greg McBride also sees them holding steady at or slightly below 4 percent.

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Now May be the Best Time to Sell

Pending Recession Makes Selling Real Estate Now Very Attractive

A recession is generally viewed in a negative light in terms of the housing market overall. However, there might be a silver lining when it comes to real estate selling, especially for those who want to sell sooner rather than later. Could a possible recession in 2020 mean that homeowners should be eager to sell this year?

Upcoming Recession?

A recent Zillow report shows that real estate professionals, as well as economists, are expecting a recession to hit the economy at some point this year. While the effects of this recession aren’t predicted to be as dire as the one that hit the housing market in 2008, buyers and sellers should both stay alert.

Effects of Recessions on Sellers and Buyers

A recession that starts happening early in the year could motivate sellers to put their home on the market in the near future instead of waiting. Higher interest rates that could occur with a recession might mean having fewer buyers around at that time. This can make it harder for sellers to sell their home at an ideal price, and it could take longer to find the right buyer. Listing a home now or in the near future might be a better option for those who want or need to sell quickly or those looking to get as much as they can for their home.

Those who are thinking of selling a home this year might want to consider listingearlier rather than later in case interest rates do rise considerably. In the meantime, those who are looking into buying a home should keep a potential recession and increasing interest rates in mind when deciding when to purchase this year.

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Tips for Selling Your Residential Listings Even in December

Tips for Selling Your Residential Listings Even in December

Do your New Year’s resolutions include moving but you’re afraid holidays and cold weather will keep buyers away? Don’t be discouraged by conventional wisdom about selling your home in December. Beat the winter freeze with these helpful winter real estate selling tips.

Keep Decorating Neutral and Tasteful

Not everyone celebrates the holidays in the same way. What seems bright and festive to you may feel tacky and overdone to others. Don’t run the risk of offending potential buyers. Stick to a general winter season decorating theme that lets buyers picture themselves building holiday memories in your home.

Don’t Forget Curb Appeal

The weather outside is frightful, but don’t use it as an excuse to slack off on exterior maintenance. In addition to being unsightly, snow- and ice-covered stairs and sidewalks are a safety hazard. Make sure all walkways are clear, touch up paint as needed and clean the gutters. With shorter days limiting the amount of natural light, consider adding exterior lighting.

Leverage Online Marketing

During winter months, buyers spend less time exploring neighborhoods in person and more time taking online tours. High-quality photos and videos highlight the best features of your home and inspire viewers to take the time for a visit. It’s well worth the investment to hire a professional photographer.

Target Motivated Buyers

Summer weather may be more conducive to the process of moving, but there are a number of financial reasons why people look for homes in the winter. New jobs often start at the first of the year, or people receive year-end bonuses that they put toward buying a new home.

Our real estate selling tools help you grow your business any time of the year. Contact Properties Online to learn how our web-based software helps build traffic and capture leads.

Fall 2019 May Be a Better Time for Listings and Sale Than the Projections for 2020

Fall 2019 May Be a Better Time for Listings and Sale Than the Projections for 2020

2019 is not expected to continue the trend of high-flying home prices and rapid sales. Despite this, real estate selling experts indicate that 2019 is the best time to list a home. What gives? The remaining months are predicted to be a better market than 2020-21. For those on the fence weighing the option to sell, it could be unwise to play the waiting game.

Why is 2019 Expected to Be Better for Real Estate Selling?

• New buyers are still venturing into the market.

The affordability factor has weighed down the market. There will be no flood of buyers this year – more like a steady trickle. This will slow home price increases and extend listing times. Although housing inventory remains low, particularly in the starter-home market, high-traffic shopping will continue.

The largest segment of buyers is expected to be Millennials. In a recent Trulia poll, one-fifth of Millennials anticipate purchasing a home in 2019. 

• Interest Rates Remain Low

2019 has not seen the multiple rate hikes anticipated. More recently, lowered interest rates have brought the 30-year fixed rate down to around 3.58%. Even if a raise were to occur, rates will probably remain near their historical lows. With no sudden leaps anticipated, now is a great time for buyers to lock-in low rates.

• Equity Cash-In

For sellers holding a home they purchased during or shortly after the recession, there’s a lot of equity at stake. The more equity in the home, the higher the net from the sale that can be used toward a down payment on another house. The greater the down payment, the lower the interest rate, reducing monthly payments and the need for PMI.

Don’t miss out on prime sales opportunities. Ensure maximum return-on-investment with real estate selling tips and tools from Properties Online today.