Tag archive for "real estate market report"

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

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.

Real Estate Trends to Watch for in 2017

Don’t let these 2017 real estate trends sneak up on you! The results of the Presidential race shocked the nation, with real estate magnate Donald Trump taking the ticket. What other shocking changes might the 2017 year bring for real estate trends following this momentous transition?

• Drones are flying high
Cleared by the FAA for commercial use, flyovers by newly certified agents, home buyers, and sellers are expected to be on-the-rise next year.

• “Surban” neighborhoods command the scene
More than mixed-use, buying patterns and new lingo point to “surban” areas as the future of real estate: A blend of urban and suburban, these dense communities consist of varied housing arrangements from condos and townhouses to single family homes with added urban amenities just outside core cities. Walk to work, the store or well-rated schools with less of the hustle, bustle, and cost of major cities.

• Interest rate surprises
Though a gentle interest rate nudge was expected this December, “election turmoil” could hold this up – and subsequent increases. How conditions will wind up post-election is anyone’s guess, as some of President Trump’s expected tactics could drive inflation.

• A happy market
With Trump’s commitment to regulatory relief, mortgage availability and inventory should get a much needed bump.

• Millennials stepping things up a notch
They’re taking their more substantial savings and down payments to put down on a first house that’s a step above the typical starter home/condo buyer.

• Generation Z in the house
They start entering adulthood (18) as of this year. As they’ve got less debt, better jobs, and thus more money to spend than their Millennial predecessors, they’ll enter the market with a more traditional view. Gen Z will be looking for larger homes with space for a family that many didn’t get to grow up in.

Don’t wait for real estate trends to bowl you over. Prepare yourself with the help of Properties Online. Contact us today.

Video Usage in Real Estate, the Stats Are In

Commercial Real Estate Delinquency Rates Climb – Watch Out In 2017

Commercial real estate trends point to prices falling by as much as 5% in the next 12 months.

What gives?

A storm is brewing, creating a tsunami of issues for the commercial sector. The global surge in U.S. property investments that drove record values in years passed is expected to wane alongside lower oil prices and disjointed debt markets. Property sales by publicly traded landlords, debt maturities, and tightened regulations are furthering the trend. The instability is creating a volatile commercial real estate selling atmosphere, with uncertainty about U.S. policies following the presidential election worsening matters.

Let it rain

Commercial mortgage-backed securities (CMBS) float amidst a tumultuous market in which borrowing costs for landlords are higher, inhibiting future price growth. Properties in small cities, dependent on Wall Street banks for funding, have been hit especially hard – a global market rout in February sent prices plummeting after Wall Street dealers were unable to provide liquidity when hedge funds were forced to sell CMBS holdings. Regulations such as Dodd-Frank are also not helping the situation, making it increasingly expensive for banks to hold securities.

Cold front

The market has shown signs of cooling since the start of the year, with commercial property values in big cities declining 3% in just the past 3 months. New York, the biggest market, is forecasted to decline as much as 30% over the year. Even REITs (real estate investment trusts) are being affected, with shares trading at prices that undervalue holdings (shopping malls, office buildings, hotels, etc.), leading them to become net sellers.

Bailing out

Despite the expected downturn in commercial real estate trends, the sun could break through the clouds, presenting new opportunities in the form of bargain prices for investors, and opening opportunities for investors to bail out borrowers who’ve come up short.
Are you prepared to weather upcoming commercial real estate trends? Properties Online is here to help. Contact us today.