Posts in Real Estate Marketing (page 2)

Tips, tools and gadgets to help you market your properties online.

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.

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.

Shutting Down the Money - Chinese Real Estate Investments Dry Up

A Long Term Look – The Reality of Real Estate Sales 2018 and 2019

Though home prices have grown by 5% and new home sales are up 7.4%, real estate selling trends show existing home sales down slightly by 2.2%, leading many to worry. Is a downturn on the horizon? In the shadows of the 2008 housing market crash, how steep and how fast will it occur?

The Sky is NOT Falling

Despite higher mortgage rates and home prices, real estate selling statistics show home ownership rates inching higher, from a cyclical low of 63% in late 2015, to 64.4% in the second quarter of 2018. While the rental market remained neutral, 3 million new homeowners were added to the books. What’s more, aggregate owners’ equity is expected to grow $1.4 trillion this year, bringing net housing equity to over $15 trillion. At just $6 trillion in the depths of the market crash, today’s market actually paints an impressive picture.

The Bubble Won’t Burst

Today’s market is fundamentally different from that of 10 years ago:

– Lending standards are stringent, with those capable of securing a mortgage showcasing higher than normal credit scores.

– Defaults and foreclosures are at historic lows.

– Overbuilding, seen in the start of the bubble days, is a non-issue (in fact, quite the opposite).

So What’s Hindering Home Sales?

Limited housing inventory. We have gone from oversupply during the crash, to falling levels for 8 of the 10 past years. Homes are selling at a record pace. It would take only 4.3 months to exhaust total inventory. Demand is there, supply is not, creating the source of market headaches.

To meet market needs and boost affordability, new homes must be built, with starts expected to rise in 2019, though lumber tariffs, labor shortages, and locating space for new development will continue to temper growth.

Know when to look up, when to look forward, and when to duck for cover. Prepare for the future of real estate selling with the help of Properties Online today.

Each Property Should Be Shown in its Best Light!

Looking Ahead: What’s in Store for Real Estate Sales in 2019?

As 2018 comes to a close, what real estate trends are on the horizon? While no one can predict precisely what the future holds, 2019 is likely to reflect the following issues in the housing market:

New Home Construction on the Rise

There’s a rise in building permits nationwide, up 8.4% over April 2017 levels, offering hope for a much-needed influx of new single-family homes. However, with long lag times until completion 2019 will likely continue to suffer supply shortages.

Rising Mortgage Rates

Mortgage rates, which hovered below 4% back in 2017, have risen substantially. Their steady upward climb has continued for months, from 4.52% for the average 30-year mortgage back in July of this year to around 4.75% today.

Moving forward, the Mortgage Bankers Association (MBA) predicts rates hitting around 4.9% by the close of the year, with rates continuing to inch upward in 2019. Economists at Freddie Mac concur. Despite rising rates, however, the economy is strong and employment is high, thus real estate sales are not expected to take a hit.

Continually Rising Home Prices

Given short supply and increased demand, home prices in most U.S. cities are expected to continue to climb in 2019. How high will they go? Zillow estimates the median home price rose 8.1% over the past year, and anticipates a 6.5% increase over the 12-month period from July 2018 to July 2019. Tighter markets, such as those in California, Oregon, and Washington, are likely to see the greatest gains.

Despite This, It’s Still a Seller’s Market

Despite all of the above, 2019 is expected to remain a seller’s market. The inventory shortages seen in most markets through 2017-18 are likely to continue, driving the trend and putting upward pressure on prices.

Don’t get stuck in the past. Stay on top of current real estate trends. Ensure a shining, successful New Year with the help of Properties Online today.

November May Just End Up Being Your Best Month

Could November be Your Best Real Estate Sales Month Ever?

Many homeowners avoid the holiday real estate selling season like the flu, believing it’s a bad time to sell. In today’s real estate tips, we’ll look into this shunned selling season, and why it no longer applies today…

Holiday Buyers are More Motivated During the Holiday Season

The main idea that spring and summer are the best time to list homes for sale involves real estate tips surrounding parents waiting for summer to move school-aged children. However, this idea is outdated.

Today, more than half of home buyers are single, and their decisions aren’t based on the school calendar. Those looking to buy are either dragging their feet in hopes of a better deal, facing the time constraints of finding a home due to a change in employment, and more. They’re now highly-motivated.

Cold weather, shorter days, and hectic schedules don’t apply. These buyers need a home!

Today’s Holiday Home Sales Go Faster & Closer to Asking Price

Because holiday buyers are motivated, they’re more likely to pay closer to listing price. Several studies show homes listed during the holiday season today are more likely to sell faster and closer to asking price, particularly in November during prime holiday sales time.

There’s Less Competition in the Holiday Season

Because most home sellers suffer misconceptions about holiday sales, they take their homes off the market, shrinking supply. This results in potential gains for those sellers that do list. Less competition means more buyers checking out the few desirable homes on the market.

There May Be Year-End Tax Break Opportunities

Those looking to lower their taxes may also snipe a home late in the year to deduct purchase costs like points, interest, property and capital gains taxes.

Do you have the real estate tips you need to make the most of the holiday home buying season? Give yourself the gift of steadier sales with the help of Properties Online today.