Posts Tagged as Buyer Trends

Rising Mortgage Rates Fail to Dampen the Buyer's Market

Rising Mortgage Rates Fail to Dampen the Buyer’s Market

2016 was a stellar year for buyers, witnessing mortgage rates below 3.75% all summer on the average 30-year fixed-rate mortgage. With the steadily rising interest rates of today’s real estate financing trends, currently at around 4.5% and climbing for the typical FHA loan, you’d think there would be some sort of sales slowdown – but that couldn’t be further from the case.

Flying High
Home sales are moving on up – flying in the face of rising interest rates. This may slow increases in housing prices, but it’s still expected to remain a seller’s market across most of the United States for 2017. And because interest rates still remain historically low overall (despite multiple raises by the fed), 2017 remains a great time to purchase a home – and buyers are scrambling to take advantage.

Heating Up
Having more potential buyers than sellers means it will continue to be a seller’s market across the country. Nationally, inventory was less than 4 1/2 months toward the end of last year, with the country experiencing a shortage that hasn’t been like this in 20 years. At present, in the hottest markets such as Denver, well priced homes are receiving multiple offers – and selling fast.

No End in Sight
New home building may later offer some minor relief, but that remains to be seen. Especially hard hit continues to be the lower-priced homes, first-time buyer segments, as well as retirees. Because so many owners owe much more on their homes than they’re worth, inventory remains in back-stock. Some homes that did make it to the market experienced financing issues as the appraisals came in well below sales prices.

Afraid real estate financing trends are going to take a bite out of your bottom line? Put yourself in a positive position. Stay on top of the latest industry news and trends with the help of Properties Online today.

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Top Summer 2017 Real Estate Selling and Listing Trends

What’s hot in real estate trends? Sales! With no segment hotter than the ever-dwindling starter home market. Moving at a furious pace, the 2017 spring buying season has shaped up to be uber-competitive, and the breakneck pace is the fastest seen in decades according to economic research at Realtor.com.

A Record-High Number of Buyers
With a record-high number of buyers pounding the pavement, homes are flying off the shelves. Median days on the market for homes on Realtor.com have dropped to the lowest levels since the end of the recession. One-of-three homes is selling in under 30 days nationally – 5 days faster than last year and 2 days faster than last month.

Overall, May sales maintained momentum, with homes moving 8% faster than last year. With prices reaching double-digit growth, buyers are running out of options.

A Record-Low Number of (Affordable) Homes
Can everyone say ‘supply and demand’? Residential real estate prices soared to new heights in May with for-sale inventory experiencing extremely limited growth according to Realtor.com data. And it doesn’t appear there’s an end to the inventory shortage in sight.

Nationwide median home prices broke $250,000 for the first time earlier in the spring, now reaching $275,000 – a whopping 10% higher than one year ago. This lack of affordable housing will remain a critical issue for millennials and other first-time home buyers, as well as retirees looking to downsize to urban dwellings and starter-sized homes.

What About the Spring Inventory Increase?
Real estate trends point to late spring showing a total inventory increase, with 560,000 new listings hitting the market in May. However, inventory still remains substantially lower than one year ago. That which is not priced beyond the reach of the average buyer is quickly being snatched up.

Sales smokin’ but listings burning out? Get a few tips and tricks to turn up the heat with the help of your friends at Properties Online.

Crunching Numbers? Here's the Latest on Real Estate.

Brace Yourself for Higher Home Loan Interest Rates in 2017

Historically low interest rates have finally begun to rise in recent months, and they are expected to continue this climb. How will this affect your real estate selling endeavors in 2017?

Steady incline
Housing and economy experts concur rates are not likely to go back down. Uber-low rates are in the rear view, with 30-year fixed-rates expected to stay in the 4-5% range by year’s end. A rise to 4.5% is expected, with the worst-case scenario knocking at the door of 5%. This is expected to reduce home sales over the course of the year by about 200,000 homes.

Buyer blowback
As rates climb, buyers may feel pressure to act. At a certain point, their home ownership dream will be stretched to the breaking point, but we aren’t there yet. At today’s rental rates, mortgage rates would have to be in the 7-10% range to equate rental costs.

Cooling “hot” markets
In expensive markets (LA, NYC, Miami) interest rates will push out buyers already struggling to afford homes, even with historically low rates.

Rate lock
Real estate selling may also be stymied, as sellers will effectively be “rate locked” into homes with no incentive to move, slowing the existing-home market and leaving homeowners to renovate existing spaces over higher interest rate new home loans.

Extenuating circumstances
Also playing a role: Income levels, which could stave off a decline so long as stronger economic development continues. The Fed raising short-term rates is also up in the air, as Trump’s inauguration, political appointments, and policy changes take their toll. The Fed raising rates won’t necessarily translate into higher mortgages for buyers – but it will add pressure, especially if they start raising rates aggressively and into early next year. Expect volatility in the next few months as the new President settles in.

How will the economic and political climate effect real estate selling in 2017? Properties Online has the forecast for success.

2016 Real Estate Trends: The Move Towards Online Real Estate

Has 2016 Delivered on the Projected Commercial Real Estate Trends?

Trends are emerging that will disrupt “business as usual” in the commercial real estate market. Dropped your crystal ball? No worries – we’ll fill you in…

Time’s they are a changin’ – redefining this market segment and plotting a new course:

• More general development
In this sixth year of recovery, office, industrial, hotel and residential development are expected to grow as the economy shapes-up, interest rates increase, and access to financing widens.

• Retail stalls, warehouses boom
As e-commerce continues to change the landscape with faster delivery options and the rise of online shopping/in-store pickups.

• Autonomous vehicles and car sharing
Could transform real estate markets – and parking situations. This includes drones and driverless vehicle technology.

• Flexibility is key
The process of identifying space to meet consumer needs (variable schedules, shifting calendars, shared space) will be accelerated due to high demand. Real estate owners should be looking to form partnerships with these shared providers.

• Multi-tasking environments will be in huge demand
Places where people can work/live/play 24/7 – on-site and without the 30+ minute commute. And this re-urbanization is underway globally.

• Rising capital investments
As institutional investors strive to take advantage of these changes and boost portfolios. Mergers/acquisitions will rise, and REITs could go private through buyouts.

• Customer migration to online real estate shopping, sales, and more
Tenants/customers looking for better, faster service will rely on the Internet for more data access (i.e.: who has the space they’re looking for at the best price), as well as the streamlining of property operations (hint: controlling heating and air conditioning systems/costs are only the beginning). Real estate owners must start investigating ways these evolving technologies can improve interactions with tenants and customers now if they want to ensure future success.

Don’t get stuck in the past, look into the future of commercial real estate. Take advantage of the next generation of real estate sales technology. Grow with the changing world with Properties Online today.