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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.

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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.

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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.

Foreclosed on Buyers are Re-entering the Market

2018 Will Be All About Buyers Reentering the Buying Market After a Foreclosure

They may have lost their house to foreclosure, but they didn’t lose the desire to own their own home. Between 2006 and 2014, approximately 12.8 million homes entered the foreclosure process; almost 30 percent of all households with a mortgage. Of those, 9.3 million borrowers went through foreclosure, short sold their home, or received a deed in lieu, according to the National Association of Realtors.

Referred to as “boomerang buyers,” this segment of the housing market understands much of the home buying process and likely will be more reasonable about their next purchase decision than many first-time buyers.

Why boomerang buyers will drive 2018 real estate trends

The wave of foreclosures peaked in 2010. Almost 2 million borrowers who had their credit damaged by foreclosure have now passed the seven-year waiting period. According to Fannie Mae’s Waiting Periods and Re-establishing Credit standards, millions of boomerang buyers are capable of buying another home. Borrowers who are able to document extenuating circumstances can reduce their wait time to as little as three years.

The housing market has been slow to recover in large part because boomerang buyers have been slow to buy another home. Not all of those who lost a home during the housing market collapse will buy again. Many would like to but aren’t sure about their capability to obtain another mortgage.

Marketing to boomerang buyers

Establish yourself as the Realtor who understands them and their circumstances. Utilize testimonials to show you can help them again realize their dream of homeownership. There have always been boomerang buyers, but never a pool of potential boomerang buyers this large.

Speak directly to them in your newsletter and on your social media channels. You know they once owned a home and are now renting. Talk up the benefits of owning a home over renting and offer information on available loan programs. Those who still desire to own a home will contact you.

Important Trends to Keep You In The Know

Five Important Trends to Watch for in the 2018 Real Estate Market

If you are looking for some indications of what the real estate market will do in 2018, you’re not alone. Real estate has changed and the modern real estate market is affected by everything from world events and new technology to local economies. There are still some major influences that are likely to shape 2018 real estate trends.

Hi-tech construction

More components of homes are arriving at construction sites prefabricated. The rapidly-rising demand for new homes coupled with an ongoing labor shortage means construction companies must embrace construction automation and are constantly looking for new ways to improve efficiency.

More specialized real estate agents

Home buyers and home sellers will always need knowledgeable guidance from actual people who understand the intricacies of their local market. The industry is increasingly competitive and changing. To differentiate themselves from the pack of “sell anything” agents, savvy agents will narrow their focus and become experts in their area.

Boomerang buyers

During the housing market collapse and Great Recession, the households hit hardest by the mortgage crisis dominated headlines. Their numbers are estimated at more than 7.5 million. Their credit was damaged by foreclosures, short sales, or late payments. They are now past the seven years needed to repair their credit and again eligible for home loans.

Generation Z coming of age

The first wave of Gen Z-ers turned 18 in 2017. This upcoming generation has lower interest rates, better job prospects, and a greater desire for homeownership than many of the preceding generation.

Online brands more important than ever

Modern home buyers expect to find their homes, mortgages, and answers to all their questions online. When choosing a real estate agent, they look for more than just contact information. They expect credentials, testimonials, and a detailed portfolio of your work as an agent.

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