Posts in Real Estate Industry News (page 3)

Real Estate Industry News

September May be a Tough Month for Real Estate Sales

What’s Happening with Real Estate Sales in 2019 – What to Know and Expect

Will 2019 see a repeat of last year’s mammoth price gains? Given the current economic climate, here are a few real estate trends to be on the lookout for from financial guru Dave Ramsey.

Trend 1: More Slowly Rising Prices; Less Offers

In 2017-18, housing prices jumped a whopping 10%. This year is expected to slow dramatically to a minuscule 1%. This slow down is due to a combination of rising mortgage interest rates and overall economic uncertainty, which will discourage buyers ‘on the fence.’ 

In the 2019 market, buyers need to come to the table with a firm idea of how much home they can afford in today’s pricey market. Sellers need to understand that buyers are being priced out of the market, which makes finding the right listing price integral to success. Beware of lowball offers, holding out for a better offer when not rushed.

Trend 2: Rising Mortgage Interest Rates

A strong economy and rising inflation are pushing interest rates higher. Higher rates will slow down the process for sellers, who will see fewer offers and longer sales times as the hikes make buyers pause. For buyers, though, rates are still relatively low, with fixed-rate options helping lock-in monthly payment costs.

Trend 3: A Millennial Buyer Majority

Millennials do their house-shopping homework, beginning online. They opt for quality over size, efficient/smart homes, and prefer ‘18-hour city’ locales with public transportation access. Sellers with homes not catering to this mindset can expect lower offers or for millennial buyers to look elsewhere.

For millennial buyers, competition for a 3-bedroom single-family home in the burbs is fierce. To increase the odds of success, buyers should know ‘must-haves’ in advance and include a personalized ‘story’ letter with photos to stand above the competition.

Don’t let real estate trends take you by surprise. Stay on top of the latest market expectations with the help of Properties Online today.

Looking For Something Good? This Could be Your Year.

Tips for Making 2019 Your Best Real Estate Sales Year Ever

How can you make the most of the upcoming real estate selling year? Tumultuous market conditions, from a shrinking inventory and stalled new construction to rising interest rates, can make the idea of planning ahead seem like a fruitless endeavor. Rest assured, however, it is possible to navigate the complicated waters of today’s market with the right tips.

Strive to Stay Open-Minded

Rather than relying on a single forecast or opinion on the future of the market, look to a variety of sources, drawing your own conclusions on future trends. This will also help you deliver expert advice to clients concerned about potential speed bumps ahead.

Get Out There

Local and national industry functions can be a valuable source of market information, predictions, and projections for the coming year, offering reliable answers to your (and your customers’) real estate selling questions and concerns.

Stay in Contact

With mortgage and banking contacts to stay abreast of expected changes in the coming year, such as alterations to the mortgage application/approval process that could slow down closing procedures.

Ask (and Answer) Questions

Survey clients by mail/email on their plans to buy/sell. This keeps you in touch with potential customers and gives them the opportunity to address their own market concerns.

Stay on Top of Tech

If your smartphone, tablet, or computer is outdated, now is the time to upgrade. Technology is expected to play a pivotal role in real estate sales in the coming year(s).

Network

Review your list of partners for easy referral in client transactions, including home inspectors, appraisers, home warranty service providers, lenders, stagers, movers, and pest control pros. Having this list at your fingertips can greatly help speed the sales process.

The New Year brings with it new opportunities. How will you prepare? Get the latest in trustworthy real estate selling tips and tech from Properties Online today.

Time to Get Listed for the Season

Tips for Encouraging Sellers to List Their Homes in Spring 2019

With real estate trends pointing to a slower sales pace in 2019, how can you entice sellers on the sidelines to make their way into the housing market?

2019 Might be Slower, but Trends in 2020 & 2021 Are Unknown

Put simply, it is better to sell on the tail-end of a record-year, rather than wait for upcoming years which may be nowhere close. Barring a major event, market changes typically happen slowly over time. Though interest rates are slowly rising, slowing sales, no crisis looms. Currently, home prices and demand are both holding steady.

Sooner is Better

In a recent survey of real estate experts and economists by Zillow, about half expect a recession to effect real estate trends in 2020, while 14% expect it in 2021. One-quarter expect the recession to sneak up sometime this year, making selling sooner as wise move for those who know they’re not staying in their house for the long-haul.

New Buyers Still Need Homes

Though the sales pace is slower, new buyers still need homes in a market with limited options. Millennials, the biggest segment of the market, are moving out and up, keeping the real estate realm active and enticing for sellers.

Interest Rates Are Still Low

Despite increases last year, interest rates are still at historic lows. In November, a 30-year fixed-rate was just 4.87% based on data from Freddie Mac. This is a far from those around 7% in the 90s, and even farther from the gut-wrenching historical, 18+% highs of the 80s. Though rates tend to mirror the Fed’s rate activity, they don’t follow that exact pattern, also reflecting the current market, the property purchased, and the buyers’ credit.

Don’t let false concerns over expected real estate trends put a damper on your business. Stay on top of things with the marketing tips and tools of Properties Online today.

Time to Get Listed for the Season

Forbes Article Writer Predicts No Housing Recession in 2019

Stressing out over recent real estate selling trends pointing to a housing recession on the horizon? Not everyone is on board with that assessment, including Forbes article contributor Lawrence Yun. Despite existing home sales falling 2%, falling nearly every month of 2018, and a 12% decline in housing starts (typically an indicator of a recession), Yun does not see the possibility of a downturn on the horizon.

A Difference of Opinion

Yun sees incorrect conclusions being drawn from these statistics. He notes that rather than a demand shortage, as seen at the depths of the 2008 housing recession in which an oversupply of 12 months of inventory was on the market, today it’s quite the opposite.

Real estate selling trends showcase a shortage of inventory. It would take just 4.3 months to exhaust current supplies, as compared to a balanced market of 6-7-months of inventory. Homes continue to be pocketed at a swift pace, spending very little time on the market (about 26-days in June).

Bidding wars are still alive and well. Demand is there. Supply is not. ‘A problem much better to have,’ denotes Yun, who believes muted growth points to neither a price decline nor a looming foreclosure crisis.

Making Sense of Muted Growth

So what does he believe 2018’s muted growth points to? The affordability crisis. As a lack of inventory drives prices up, especially in hot markets, buyers are increasingly being priced out of home ownership. Until more homes are built to meet entry-level housing needs, prices will continue to climb.

The 1.3 million housing starts projected in 2019 will be insufficient to moderate prices and support sales. Skilled labor shortages, tariffs, crippling impact fees, and laborious permitting processes don’t help. Yun sees this as a far cry from the overbuilding and overzealous lending practices pre-bubble.

Real estate selling trends scaring you? Dodge the drama with the help of Properties Online today.

Technology Disrupters Coming to Real Estate in 2019

Technology Disrupters Coming to Real Estate in 2019

Tariffs. Government shutdowns. Stock market shenanigans. 2019 marks a period of uncertainty, with a variety of disruptors affecting not only real estate trends, but national and global affairs. However, the greatest disruptor is predicted to be Technology!

What Technology will Impact the Real Estate World in 2019?

Despite the overall economic slowdown expected, these emerging trends in tech could provide new opportunity for a market in flux:

New Platforms for Home Sales

iBuying, offering purchase of homes sight unseen based on a proprietary valuation model, is among the real estate trends luring sellers (and buyers) to off-the-beaten-path venues. Digitally-driven platforms such as Open Listings, Door, Rex, and Opendoor are luring buyers and sellers alike with flat-rate commissions, sight-unseen cash offers, and a more digital listing/shopping experience.

Continual Rise of AI

We’re not talking robots giving home tours. We’re talking artificial intelligence that can perform sophisticated data analysis capable of predicting market trends. The latest AI-powered platforms can aggregate once isolated data, constantly updating to arm agents and consumers with with all the information they need. This can help buyers/sellers negotiate the best deal and agents to immediately jump on sales leads.

Virtual Reality

As property videos increase in popularity, VR will soon be on the horizon.

Blockchain

Redefining real estate transactions, blockchain technology is facilitating major transactions (like real estate) without intermediaries (banks, credit card companies). With ‘tokenization,’ blockchain is opening the door to new opportunities for sellers, granting multiple investors the ability to buy just a portion of a property (and resell it).

Smart contracts via Propy and other services are allowing for purchasing transactions with no human interaction, which streamlines the process. In the future, it is hoped to pave the way for a smoother road, reducing fees, closing times, property title issues, and fraud.

What real estate trends are shaking up your world? Safeguard sales with the help of Properties Online today.