Posts Tagged as housing market

Trying to Break into the Luxury Home Real Estate Business?

It’s Been Confirmed, It’s a Seller’s Market

Fistfights breaking out at your brokerage over the possibility of gaining a listing? Just in case the dog-eat-dog listing races and woeful number of affordable homes on the market for buyers weren’t enough of a confirmation of real estate trends, Trulia and statistics have finally confirmed: It’s a seller’s market.

Strongest Seller’s Market Ever
Brand-new spring housing market numbers have confirmed the trend, looking to statistics from the country’s 100 largest metro cities. Boiling the trends down by zip code, it uncovered a shortage of homes nationwide – a deficiency that hasn’t been this bad in 20 years.

Inventory for March is down 6.6% from a year ago, and unsold inventory a 3.8 month supply. (A balanced market is a 5-6 month supply.) This has led to monthly rises in home prices, up nationally 5.7% for February, year-over-year.

Slim Pickins
As buyers frantically search for affordable homes, the market is getting increasingly competitive, with first time buyers experiencing the greatest hardship. Even as more homes enter the market for the popular summer sales season, they’re flying off neighborhood shelves fast. And at entry-level, where demand is greatest, sellers remain firmly in the driver’s seat.

Heavy Competition
There’s no shortage of people on the lookout for a new home. And though people prefer a home that’s move-in ready over one they have to upgrade, its concession-time in a market where bidding wars are par for the course. Sellers are optimistically pricing their homes – and most are selling anyway.

To compete, buyers are dropping contingencies and coming in with cash. Multiple offers are the new norm. Worse, real estate trends of home appraisals regularly coming in well below sales price are dropping a wrench in the works for would-be first-time, mortgage-dependent buyers.

What are you doing to rise above the competition in today’s seller-centric market? Stand out with the tools and technology of Properties Online today.

Are You Ready for Virtual Reality in the Real Estate Marketplace?

Bubble Identification Tips – What to Know Before the Bubble Bursts in Your City

For agents whose real estate careers survived the 2008 bubble burst, scrutinizing real estate trends in hopes of protecting yourself from subsequent disasters should now be a common practice. What things should you look toward as a means of predicting if things might blow up in your face, yet again?

These real estate trends may signal a market that’s about to pop:

Shaky loans
Subprime lending is risky. Though the FHA still offers loans with minimal down payments (3.5%), lending practices deviating from current elevations in underwriting standards may signal a need for caution.

Over-extended leverage
A bubble means lots of leverage – banks accepting minuscule down payments from buyers as a means of securing the purchase. Current trends this year point to a cycle devoid of leverage. The average buyer is putting down about 35%, and in some markets, cash buys are up, such as in New York City where 45% of transaction are cash.

Home prices outpacing salaries
When home prices rise and salaries don’t, people feel forced to rent or driven to eke out an existence in a home they can barely afford. It doesn’t take a genius to realize that this isn’t sustainable. If business isn’t rising in outlying markets, but only in main metropolises in combination with shaky loans and leverage overextensions, keep watch with a wary eye. (Keep in mind here, we do not mean rapid home appreciation, but unsustainable rapid price appreciation, which fundamentals don’t support.)

Slowing foreign interest
Markets in need of correction may see a drop in international buyer demand. Toss in a natural disaster or disease outbreak, like Zika, and it may be time to break out the ponchos. Case-in-point: Miami.

Rising interest rates
Rising interest rates typically coincide with a drop in affordability, and thus housing demand.
Real estate trends have you feeling the pressure? Properties Online can help ease the bloat. Discover how today.

Efficient Technology Makes Efficient Sales, Which Makes Happy Agents

Prominent Economists Tip the Hand of the 2016 Housing Market

Economists Tips The Hand
Economists Tips The Hand

Everyone seems to have an opinion on what 2016 will bring for the real estate industry. However many are putting their money on the real estate trends forecasted by the six prominent economists in a recent Housing News Report. What are these monetary moguls betting on?

  • Moderate home price growth and sales.
    The economists interviewed were cautiously optimistic about home prices and sales overall. This is due to rental and homeowner vacancy rates that continue to decline, pushing up housing prices (and rents), particularly in affordably priced homes. The edging up of interest rates from historical lows by the Fed is also expected to spur fence-sitters into action.

    • Who’s buying?
      • Older millennials age 25 to 34 have the potential to claim one-third of sales
    • Who’s supplying?
      • Gen X’rs, whose income and families are movin’ on up.
      • Older boomers looking to downsize and/or retire.
      • New home construction, now geared toward single-family, affordable housing.
  • Rising rental rates.
    Rents will continue to rise more rapidly than home prices. While this will reinforce the desire to buy, the burden of high rental rates will prevent many from saving toward a down payment, evidenced by the lowest home ownership rate in almost 50 years. Though many markets are ready and waiting for buyers, demand has yet to be seen. The market for first time buyers is especially tight, due to higher credit standards and a lack of affordably priced options
  • Low inventory.
    The developing affordable housing shortage is expected to be among the most influential real estate trends in 2016. New construction remains far below demands and the existing stock of homes is drying up, quickly being consumed by newly formed households and second home buyers.

What’s in the cards for you when it comes to real estate trends? Make the most of your hand with the help of Properties Online today.

Is Your Seller Pushing for a Listing Price You Consider Unrealistic?

Unrealistic Expectations
Unrealistic Expectations

Thanks to recent upswings in the housing market, a common argument in favor of higher home prices is “the market is back”. While today’s market is improving, how much “more” is realistic? And how do you rein-in unrealistic homeowners in your effort to set a real estate selling price?

A delicate balance…
Your goal must be to earn top dollar for sellers without overpricing listings which can result in appraisal issues down the road. And you must be able to do this without losing the listing to another agent in the habit of overpromising. A tough road to travel indeed!

Follow these steps when setting a real estate selling price with unrealistic clients:

  • Do your homework.
    Before you arrive at the listing appointment, know what price the seller is expecting to prepare your strategy. If it’s unrealistic, how did they come up with it? (It’s often either ignorance or arrogance.)
  • Know your numbers.
    Knowledge = confidence. Ignorance = fear. Stay on top of local numbers and ditch emotional, fear-based reactions in favor of factual knowledge so sellers will both see the light and have confidence in you!
  • Stay on top of market/micromarket prices.
    What are the facts?

    • Average days on the market…
    • Neighborhood list-to-sell price ratios…
    • Competition…
    • What’s not in the MLS – new construction, FSBOs, pocket listings…
  • Get pending listing 4-1-1.
    Pricing intel from these agents could give you a competitive advantage over other area listings when setting the price.
  • Go armed with a net sheet.
    Using net sheet programs, your title/escrow agent, or your own, compile a net sheet based on a HUD statement: priced low to sell immediately or high to test the market. Ask clients, “What time frame works for you?”

Don’t let setting a real estate selling price give you a headache! Get a handle on your listings with Properties Online today!

Housing Market

The 2013 Housing Market – It’s Good News

2013 is already shaping up to be a promising year for the U.S. housing market. A favorable end to 2012, thanks to a strong rebound in the market, have led RE/MAX Co-Founder and Chairman Dave Liniger to go on the record with his top ten predictions for the coming 12 months.

“Although interest rates have been at historic lows, they have not been the driving force behind this recovery. There’s no single factor driving this market; it’s been a combination of low prices, low inventory, improving consumer confidence and a huge pent-up demand. That was true throughout 2012 and will continue to be true in 2013,” Liniger says.

Liniger has gone as far as saying that 2013 will be the best year in real estate in many years (yay!), but a fragile, obstacle laced recovery is not yet complete.

Liniger’s top 10 predictions, revealed via a video presentation, are:

1. More homebuyers and sellers will come back to the market
2. Homes sales will rise by 6-7% and prices will rise by 3-4%
3. The inventory of homes for sale will hit a bottom
4. Higher priced homes will begin to sell
5. Distressed property numbers will continue to fall
6. Shadow inventory will continue to fall
7. The number of short sale closings will rise to a peak
8. Record low mortgage rates will rise slightly by year-end
9. Lending will remain tight
10. Home affordability to remain the best in years

“If housing can stay on the road to recovery, it’s possible that it can pull the rest of the economy along with it,” he says enthusiastically.

Top 10 Housing Predictions for 2013 by David Liniger