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.

How to Help a Seller Pay Closing Costs

3 Tips to Get Sellers to Pay the Buyer’s Closing Costs

Every real estate agent knows that the more you can do to sweeten a deal, the better chance you have of selling a home. Plus, it shows just how willing you are to go above and beyond for the client.

One of these ways is get the seller to cover the closing costs for the buyer. It’s not always easy to do, but it is possible. In fact the latest real estate trends are showing that more buyers are looking for deals that include this distinction. But the question is, how do you get the seller to agree?

Buyers Pay the Home’s Asking Price

This has been seen more often lately in the latest real estate trends. The buyer will make an offer with the homes asking price contingent on the seller covering the closing costs. This allows people to purchase a home with no money out of pocket, whatsoever. Your clients will love that.

Plan on a Quick Closing

With some financial institutions, it can take as long as two months to close on a house; sometimes even longer. You may have a better chance of getting the seller to pay the closing costs if you commit to a very quick close on the property. This works best with motivated sellers who have already purchased a home elsewhere.

Make no Demands

It’s possible that the house might need a coat of paint, or a few minor repairs. But if you want the seller to pay the closing costs, it’s best not to bring them up. The buyers should plan on making these changes themselves.

If you’re a real estate agent, you need all the help you can get to be successful. The tools we offer can help propel you to the next level in your career. Contact us 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.