Posts in Real Estate Trends (page 2)

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.

Fall 2019 May Be a Better Time for Listings and Sale Than the Projections for 2020

What’s Predicted to Happen to Real Estate Sales in 2019?

The U.S. economy is going strong, with high consumer confidence and a booming housing market. Despite this seemingly rosy picture, however, investors, agents, and homebuyers are collectively concerned about the potential for real estate trends to take a turn for the worst. Let’s take a look at mitigating factors.

Excessively High Home Prices

Rising interest rates, rapidly rising home prices, and government policy turbulence lend some credence to crash concerns, especially for buyers in hot markets. How long can a $40,000 salary support a luxury car, lavish lifestyle, and monster mortgage? An economic downturn or sudden rise in unemployment could quickly fuel financial instability.

Rising Interest Rates

A recent Forbes report noted virtually all modern rate hikes have led to recession, financial or banking crises. If the Fed continues rolling-out rate increases, inflation will slow down sales, particularly in hot markets. Cost and availability of credit are fuel for bubble inflation, inviting less credit-worthy/inexperienced buyers into the game.

Rising rates are a negative indicator of future real estate trends. Financing will prove difficult, even though home prices aren’t as high as 2006/2007, mortgage rates are lower, there are fewer zero-down buyers, and there’s no ‘creative financing,’ for those burdened with debt.

Stock Market Volatility

Could stock market volatility factor into a housing crash? Despite a thriving housing market and rising home construction, 100 economic experts polled by Zillow believe a recession is on the horizon for 2020. If Americans are employed and wages rising, some believe this may not result in a bubble, but some aren’t convinced.

Trade War with China

Some see the end of free trade a foreboding sign. The tightly woven network of the world’s economies are interdependent. The current trend toward ‘trade protectionism’ could impact those markets, creating a backlash for the U.S. housing market where foreign economies invest.

Get the tips and tricks you need to ensure success 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.

Zillow's Thoughts for 2020

How to Get Those Home Photos That Sell a Property Fast

If you’re a fan of reality TV and those fix-it-and-flip-it shows, you’ve probably noticed that in addition to the show’s host(s), there’s typically one constant: The photographer. And there’s good reason for this. Those skilled in real estate selling know photography can make or break a potential buyer’s attraction to the property, limiting showings and potential offers.

First Impressions are Everything

While it may not be easy to figure out what makes a good photo, identifying bad ones is pretty easy. So how can the average agent ensure better shots? Consider:

What do you want the viewer to see?

Draw the viewer’s eye to what you want them to remember: A stunning fireplace; industrial appliances; a massive pool… When taking shots, focus on this feature, omitting surrounding unnecessary and distracting objects.

Have you lost the bigger picture?

While ‘zooming in’ on key features, be careful not to literally lose the bigger picture. In focusing on those industrial kitchen appliances, did you fail to reveal the kitchen size and layout? Wider shots help buyers make sense of what they’re seeing. Figure out what angle works best, and take lots of photos, zooming in/out.

Are photos too dark?

Brighter is better. That being said, lean toward natural light over light fixtures, allowing a space’s charm to shine through. Clear days are ideal. If lighting washes out shots in rooms with large windows, consider timing: Maybe a morning/afternoon shot or cloudier day could improve the outcome.

Did you skip prep work?

Eradicate clutter, ugly stains, magnet-covered fridges and unmade beds pre-session. Tidy = clean and low-maintenance in the buyer’s eye.

Are your photos tech-poor?

Skip the smartphone for a high-def digital camera – or hire a pro.

Real estate selling can be a tricky business – but photography doesn’t have to be. Get the tips and tricks you need to ensure success with the help of Properties Online today.