Posts Tagged as Real Estate Industry News

Forbes Says May May be the Best Time to Sell

Forbes Says Statistically May is the Best Time to List a Home

Spring has sprung, and with it, homebuyers come out of the woodwork. A study by ATTOM Data Solutions recently revealed May is statistically the best time to sell a home. How will this affect real estate trends?

At a Premium

Homes listed in May from 2011 to 2017 reaped the largest premiums above market value, at 5.9% above any other month. Though sales in earlier months reap less of a reward, however, those willing to list earlier enjoy less competition.

May sales don’t take the cake, however. The highest premiums are on a single day of the year, June 28th, where market values an average of 9.1% higher. Other top days include February 15th, May 29thand 31st, and June 21st, with premiums between 8.1-9%. Keep timing in mind, however. Homes selling during these times are typically listed prior to sale. 

Timing is Everything 

Though April, May, June, and July are peak listing times for most markets, real estate trends vary from market to market, with some cities bucking the national trend. To ensure a faster selling time and fewer lowball offers and price cutting requests from potential buyers, listing in April is a strong alternative to May. This timing also allows for a May sale and escrow closing in June. If you waited slightly longer, you might make more, but it may also take longer to sell. 

Timing Stats 

Realtor.com statistics show 29 out of the 50 top metros nationwide hold a peak listing date of April. As buyers come out of hibernation in the spring, April listing leading to May sales garner:

> 14% more views.

> 5% less competition, as most buyers wait until still is out to list.

> Sales 6-days faster.

> 6% higher sales price ($17k on average).

Don’t let peak sales times pass you by. Prepare yourself, potential sellers, and buyers to make the most of upcoming real estate trends with the help of Properties Online today.

What’s Changing in Corporate Real Estate in 2019 – The Emerging Trends

What trends will be rippling across the commercial real estate selling sector in 2019?

Commercial Occupants are Thinking ‘Smarter’

As with residential real estate, commercial real estate tenants are turning to smart, tech-enabled designs to help them control costs, boost productivity, and improve occupant experience. Outperforming older buildings, new technologically advanced buildings are meeting the societal need to be a part of the ‘internet of things.’

For example, they’re incorporating systems that support a mobile work style and responding to occupants’s needs such as lighting, temperature, and even inventory supplies via smartphone apps and sensors. Expect entire buildings to soon be built from the internet up as this trend builds and businesses start shopping for better buildings.

Also, look for the owners of older buildings to boost their chances of real estate selling success by remodeling and retrofitting older structures.

Cohabitating and Co-Working

People will continue to look at the workplace as a service, much like a hotel, increasingly embracing the co-working concept. WeWork and similar ventures are setting the standard for such co-working spaces. Today’s users have expectations on what they should offer, including features like plug-and-play desks, collaborative workspaces, community programming, and amenities.

Corporations are on-board as well, looking to co-working for flexibility not seen in traditional leases, and leaning on co-working spaces when they need to contract, expand, or test a market.

More Balanced Design

Shifting from extremely open layout plans and restricted square footage, today’s companies are acknowledging that placing everyone from the CEO to clerical workers in an open-plan space doesn’t always work, sending workers to hermit in conference rooms and closets to find focus and quiet.

Today’s offices are being adjusted to accommodate activity-based workspaces instead and paying closer attention to workplace design as it relates to employee tasks.

Commercial real estate selling confusing? Stay current with the latest trends and tech with the help of Properties Online today.

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.

Real Estate Home Sales Are Hot! What's Up for the Rest of 2018?

Real Estate Home Sales Are Hot! What’s Up for the Rest of 2018?

What’s driving today’s real estate trends? Driven by low home inventory, new home sales are hot, with sales rising 6.7% in May despite extraordinarily high selling prices. This tops the far more conservative estimate of a 0.9% increase expected by economists at the Wall Street Journal.

Have We Surpassed Elevated Levels Seen Before the 07-09 Mortgage Crisis?

New home sales still remain well beyond such levels, and are up 14.1% compared to new home sales last May.

What Areas are Seeing the Greatest Growth?

Sales in the South are driving last month’s numbers, with the region experiencing a 17.9% increase in new home sales. Elsewhere in the Midwest, May sales were flat, and in the Northeast and Northwest, new home sales declined.

Will this Trend in New Home Sales Continue?

Expectations of single-family home sales by builders fell two-points in June according to the recent NAHB housing market index. Further economic growth, the creation of more jobs, and a solid housing demand, however, are expected to spur construction of more single-family homes in the months ahead.

What About Pre-Owned Homes?

Compared to sales in the first 4-5 months last year, 2018 sales of pre-owned homes have remained neutral.

How are Complications in the Sales Arena Playing a Role?

It’s commonly seen in real estate trends for low inventory to inflate prices, driving buyers out of the market, and we’ve been seeing that for quite some time now. But this isn’t the only factor complicating purchases. Mortgage interest rates rose to 4.59% in May, up more than half a point from January’s 4.03%. Labor is scarce, and lumber prices at record-highs, adding almost $9,000 to the cost of new single family homes since January of 2017. All-in-all, a harrowing time for making a home purchase.

Are you making the most of today’s hot housing market? Heat up your sales with the latest real estate trends and technology from Properties Online today­.

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

Market Watch: The Top Commercial Real Estate Trends for 2018

With the ups-and-downs of today’s crazy economic and political climate, real estate marketing can be complicated, to say the least. As this rapidly changing environment continues to affect the market, look to these real estate trends to point you in the right direction:

Interest Rates
The benchmark lending rate rose in December by 1/4 point, to 1.25-1.5%. Three hikes for 2018 are projected, with the federal funds rate forecasted for 2.1% by the end-of-year, and a rate of 2.7% projected for 2019. Despite these forecasts, the 10-year Treasury rate has remained stable, indicating the market is not so sure of these rate hikes, and looking to inflation as an indicator of their propensity.

Until then, the cost of borrowing and property values should remain stable. However, absent rate hikes, a bubble risk remains, as does the potential for economic stagnation hindering sales.

Retail & Industrial
2017 was an astoundingly terrible year for retail. Store closings over-tripled, with over 600 bankruptcies reported in the retail sector alone, including heavy hitters like Sears/Kmart, JCP, Macy’s, ToysRUs, and HHGregg. Retail closings are expected to jump at least 33% this year, with more closings already announced. Even Walmart/Sam’s is closing stores.

E-commerce is having an effect on commercial real estate, causing these spaces to shift to industrial: Warehouses and distribution centers, where giants like Amazon will play a role. Industrial properties will be in high-demand in 2018, outperforming other commercial segments.

Foreign Lending
Changing U.S. tax laws could have a negative effect on U.S. and foreign banks that do business, particularly in the commercial real estate lending arena. The implementation and repercussions of BEAT, legislation intended to keep profits at home rather than losing them to countries with lower tax rates, are also unclear, and may affect multinational lenders.

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