Posts in Real Estate Market Reports

What’s the real estate market up to?

What to Know About the Luxury Real Estate Market in These Uncertain Times

What to Know About the Luxury Real Estate Market in These Uncertain Times

At the beginning of the year, all eyes were on the housing market as it began to show signs of slowing. With a sharp rise in inventory and multiple interest rate hikes on the horizon, the future of real estate sales was uncertain. Instead, interest rates have lowered and the market appears to have entered a transitional period, where affordability challenges have pulled back price growth, particularly in the luxury real estate market.

What’s Driving Changes in the Luxury Real Estate Selling Market?

1. Market Correction
Nationally, the market is shifting in favor of buyers. Transactions over $10-million are finally on the rise. Homes unrealistically overpriced over the past 2-years have come down, particularly in regions that experienced double-digit price growth. This has created an intersection where the seller and buyer can compromise on price, boosting the buyer’s market morale.

2. Tax Law Changes

Tax law changes are hurting luxury homes at the top-end of the market. Mortgage interest and property taxes are no longer fully deductible, increasing the burden on homeowners. The luxury market has understandably taken the biggest hit, with homes priced at $2-million or more witnessing a sales slump for the first time in nearly 3 years, falling 1.6%. 

3. Disappearing Foreign Funds

Markets such as NYC, once dominated by foreign money, are no longer seeing the competition of international buyers. As politics and the trade war have intensified, buyers are now more typically American. Russian buyers have disappeared, and the days of predominantly Chinese buyers are over.

4. Higher Construction Costs

The inflated prices of land, building materials, labor, and burdensome permitting regulations are pushing builders to the luxury end, softening the market.

Weather these changes with flair. Stay on top of the latest market trends with the help of these and other real estate selling tips from Properties Online today.

What's Ahead for 2019?

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.

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.

Zillow Predictions for 2019 - Affordable Housing or Not. What's Next?

Zillow Predictions for 2019 – Affordable Housing or Not. What’s Next?

Will your real estate selling income take a hit in the near future? Top economic and housing experts foretell of a dip in housing prices by 2020. Now sellers may join the throngs of buyers under pressure in the current market, rushing to unload their homes while the market is hot.

How Soon Might the Effects of a Downturn be Felt?

Surveyed by Zillow and research firm Pulsenomics, 100 real estate experts and economists had previously predicted a recession in late 2019. Now, however, roughly half have predicted the onset within the first quarter of 2020. This parallels predictions by economists in a Wall Street Journal survey, noting the current market expansion, which began in 2009, is ‘long in the tooth by historical standards’ and cannot hold.

Should You Ramp Up Real Estate Selling Efforts?

Though the housing market played a major role in the last recession, experts generally agree it won’t play a central role in the next. Much remains unknown about the recession’s precise path, however, though there are some known factors expected to play a role:

Housing affordability.

A critical issue in nearly every market nationwide.

Monetary policy.

If the Fed raises short-term rates too quickly, slower growth is a logical result.

Trade policy.

The impact of tariffs continues to impact the national/global economy.

Stock market correction.

2018 volatility foreshadows a crisis/correction.

Impacts on the Real Estate Market

With widespread job losses, and with long-term unemployment in particular, the housing market will soften regardless. The extent of the economy’s spillover into the housing market will depend largely on the length and severity of the next recession. Some regions of the country will feel the impact more than others, particularly high-value markets such as NYC, Seattle, Miami, L.A., San Francisco, and San Diego.

Should you be listening to chicken little? Stay up on the real estate selling market news, avoiding calamity with the help of Properties Online today.