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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.

September May be a Tough Month for Real Estate Sales

September May be a Difficult Month for Real Estate Sales

For those planning to put a home on the market, sooner is better for the 2019-2020 selling season. Changing real estate trends point to sales slowing down. What has the market putting on the brakes?

Factors Playing into Slowing September Home Sales

– Current Real Estate Trends

Current patterns suggest an upswing in sales or pricing is unlikely in the near future. Though cities differ, prices in metro areas are roughly 45% more than they were pre-bubble in 2006-07.

However, home inventory is creeping up, putting pressure on pricing. This correlates with rent. As rents soften, buyers look to similar discounts when buying a home. This typically trickles-down from the most expensive markets. Those with a large supply of condos will be especially hard hit.

– Economist & Expert Opinion

Economists and real estate experts polled by Zillow in May expect a recession, though they differ on timing. Twenty-four-percent expect one in 2019; nearly half in 2020; with 14% expecting the recession to hold off until 2021.

– Stock Market Fallout

Slowing global growth, trade wars, and their effect on the stock market and bond yield growth are making buyers everywhere more cautious about investing in a home.

– Uncertain Mortgage Rates

Last year, the Fed indicated price hikes on the horizon. However, this year, due to trade tensions and a softening economy, the tables have turned. People already feel the high price of housing, and with an uncertain economy, are pulling back. 

– Tax Reform Consequences

Buyers are taking note of property tax and mortgage interest deductions that have dried up, putting the brakes on new purchases until they see how their 2019 tax returns are affected.

Changing real estate trends have you worried? Stay on top of market shifts with the help of Properties Online today.

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.

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.