Posts Tagged as Real Estate Market Reports

Market Watch: Updated 2018 Changes to Buyer Demographics

Market Watch: Updated 2018 Changes to Buyer Demographics

Following an exciting 2017 buying season, real estate trends point to a few changes on the horizon. What will 2018 have in store?

Changes Predicted for the 2018 Home Buying Season
Stay on your toes and be on the lookout for these changing real estate trends:

– Baby Boomers Finally Ready to Downsize

Baby boomers are finally letting go of larger traditional and colonial-style homes, and are ready to downsize in retirement. What are they looking for? A smaller footprint and single-story living, so they won’t have to navigate perilous stairways as they age. How does this translate into the market? Rising demand is expected to push up the prices of single-story dwellings.

– Millennials Compromising on the Suburbs

Though many millennials have their sights set on urban life and activity, millennial buyers, who could make up 43% of the home buying market by the close of 2018, are prioritizing affordability and quality of life – a shift which is pushing this segment out into the suburbs. Last year, the undeniable shortage of entry-level homes posed a huge hurdle for this group, the nation’s largest buyer segment.

– Post-Bubble Foreclosure Sufferers Re-Entering the Market

The more than 10-million Americans forced into foreclosure during the Great Recession have put in their 7-year, foreclosure law penance. Sick of renting and itching to re-enter the market, how many will become eligible in 2018? Around a whopping 1.5 million Americans according to the National Center for Policy Analysis, adding pressure to an already strained supply of home inventory.

Still a Seller’s Market

As buyer demand remains strong in the current year, home prices will continue to soar. This will continue to add to the stresses of first time buyers, foreclosure sufferers, and cash-strapped retirees, struggling with a lack of affordable home options and a dearth of down payment cash.

How will changing real estate trends effect your business? Stay in-the-know with the help of Properties Online.

Shutting Down the Money - Chinese Real Estate Investments Dry Up

Shutting Down the Money – Chinese Real Estate Investments Dry Up

In surprising real estate trends, China’s investments in the U.S. real estate market are speedily drying up. A recent Cushman and Wakefield report highlighted the trend, noting a drop from $16.2-billion to $7.3-billion in 2016, and estimating a 55% drop in commercial real estate investments in 2017.

Why are Times Changing?
The unusually hasty retreat has been fueled by at least two factors:

Beijing’s Leaders Restricting the Flow of Cash Out of the Country
In August, China’s State Council imposed new regulations on outbound investments designed to keep capital at home and reduce the risk of runaway debt. With a massive impact on real estate trends, the move highlights the potentially dramatic effects of state-directed capitalism. Ordered by the government to sell or dispose of foreign properties, investors from state-controlled conglomerates are selling rapidly after acquisition – in some cases, before building.

Federal EB-5 Program Funding Drops, Limiting Green Card Access
The federal EB-5 program, which allows foreigners to apply for U.S. citizenship in exchange for investing $500,000 or more in a business that makes or preserves at least 10 jobs, is losing fuel. With a huge drop-off in funding, EB-5 cash from China has dropped to just 28% of its normal flow compared to the three preceding years. In the past, the millions of dollars raised in the green card program have funded major projects, including the Courtyard Los Angeles L.A. Live and the Dream Hotel complex in Hollywood.

Big Picture
Though the drop is dramatic, Cushman and Wakefield still predict Chinese capital will continue to play a significant role in the U.S. economy. Despite pulling back on new purchases, Chinese investors are not jumping ship, and are still buying more than they’re selling. However a shift is being seen, from state-controlled conglomerates to very high net worth individuals.

Are you evolving alongside today’s rapidly changing real estate trends? Stay in-the-know with the help of Properties Online today.

Teardowns May Affect Your Business

Why the Next Property You Market May Have Fallen Victim to the Wrecking Ball

Could the next property you sell be worth more without the home or commercial building that’s on it? In some areas, real estate trends are pointing to a rising number of teardowns, especially in locations where uber-thin inventory levels are causing home prices to soar. Big cities and hot markets such as coastal and other scenic fare are taking a big hit.

Whack!
Zoning often allows for an apartment or small condo complex on land where a small, single family home, school, or commercial property once stood, making the land beneath some tiny buildings worth far more than the structure on top of it. A flip in traditional market logic where the lot accounts for a mere 10% of overall property value.

Crash!
Teardowns are especially attractive for builders and developers due to the glut of environmental hurdles and zoning issues associated with acquiring land. And the industry is increasingly taking notice of such real estate trends, with teardowns on the rise to account for 10% of all new home construction starts in 2016. That’s an increase of 7.7% from the previous year.

Bang!
Popular in the late 90s and early 2000s before the financial crisis, teardowns are increasingly becoming common in the western U.S., where housing costs are highest. Some 33,400 structures in the west took a hit in 2016, followed by 23,800 in southern regions, 12,300 in the Midwest, and 9,800 in the Northeast.

Boom!
Some of the homes taking the hit aren’t even in bad shape. In fact, buyers are dropping a pretty penny on small and seemingly insignificant homes – just to get the land and rezone it for a multifamily project, such as condos or apartments so they can boost value via added versatility.

Are you up on the latest real estate trends for producing smashing sales results? Find them at Properties Online today.