Posts in Real Estate Trends

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.

Top Tips for Selling Real Estate in July 2019

Top Tips for Selling Real Estate in July 2019

In today’s competitive real estate selling market, it can seem hard to promote yourself in a way that makes your services stand out from the crowd. Fortunately, you don’t have to reinvent the wheel. Small, well thought out changes can yield significant results. How can you put a unique spin on your business?

Focus on Photography 

Vivid, clear, carefully staged photographs tell a home’s story, showing buyers what they’re getting and helping them envision themselves within. This is especially critical when creating video real estate selling content.

Don’t Forget the Details

In addition to home details, include interesting information about the area of the home, including distance to shopping/dining, festivals/entertainment, great schools, and major employers.

Boost Your Brand with Social Media

Using social networking is a great way to keep clients updated on the latest listings, deals, and industry news. Focusing on the most important platforms, such as Facebook, Twitter, YouTube, and Instagram, can prevent you from spreading yourself too thin.

Add a Professional Touch

Organize loose listing sheets into a professional folder emblazoned with your business’ branding and contact information. Presentation is everything.

Include a Memorable Card

Add a business card that stands out from the competition, featuring a personalized design with a distinctive paper, typeface, foil, die cut, or design feature that sets yours apart.

Be Consistent with Follow-Ups

Though a home is an infrequent purchase, it is rarely an isolated event. Be consistent with follow-ups, both immediately after the sale and in the years thereafter on birthdays and holidays. This will keep your stellar services in the forefront of buyers’ minds for future purchases, as well as when friends and families are in the market for a new home.

Ensure your real estate selling success. Boost summer home sales with the help of Properties Online today.

Are You Seeing These Important Trends in Real Estate Investments Yet?

Are You Seeing These Important Trends in Real Estate Investments Yet?

Every real estate investor should make it a priority to stay up to date on the most recent real estate trends. Are you aware of what the experts are telling you to expect in the coming year? If not, read on to learn more!

Trend #1: An Increase in Interest Rates – Over the past few months, many homeowners have enjoyed nice, comfortable 4.5% interest rates on their 30-year fixed mortgages. But it looks like we’re in for a slight increase – up to 5% or more.

Trend #2: Make Way for the Millennials – It’s hard to believe that the millennial generation is ready to buy their first homes, but it’s true! They’re actually at the prime age. Currently, the number of homeowners in this generation is quite a bit lower than the number of homeowners in the U.S. market as a whole. This means more millennials will be ready to buy very soon.

Trend #3: The Suburb Boom – In past years, living in bigger cities was something almost everyone wanted. But that seems to be fading as more and more people are expressing interest in what experts call second-tier cities. They can often find much better value in these locations, and many of these homes are simply stunning.

Trend #4: Housing Affordability – At this point, it’s actually much more affordable in many markets to rent than it is to buy. Investors might be much more inclined to keep a lookout for multi-family homes as more people choose renting over the course of the next year or so.

At Properties Online, our goal is to help you be successful. In addition to keeping you updated on the latest real estate trends, we offer some incredible tools to help you provide the best service to your clients. Contact us to learn more.

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.