Posts Tagged as real estate trends

Check Out the Latest in Real Estate Trends.

Bucking the Trend: Dropping Mortgage Rates

Despite expected real estate trends, the average interest rates for 30-year fixed-rate mortgages have experienced an unexpected drop. Typically, when the Fed raises interest rates, mortgage rates likewise climb, as seen in recent short-term hikes as recently as March (and with two more that are expected later this year).

However, for the first time since November 2016, Freddie Mac reported rates below 4%. In fact, as of the week following Memorial Day, 30-year fixed-rate mortgages averaged 3.94%, dropping to rates even lower than the same time last year, reaching a new 2017 low.

What Gives?
As nail-biting would-be buyers raise their eyebrows, Wall Street investors are nodding their heads – because while mortgage interest rates are influenced by the Fed’s short-term interest rates, they’re more closely tied to the 1-year U.S. Treasury bond market. Investors consider the short-term bond market safer than volatile stocks.

When investors get spooked (think: market downturn or an unpredictable government administration), they shift their money into bonds, which mortgage rates are an inverse reflection of: Bonds up = mortgages down.

How Long Will it Last?
As lower interest rates translate into lower monthly payments for buyers, many are watching the market with a hopeful eye. Even 15-year fixed-rate mortgages and five-year adjustable rate mortgages are riding the downward trend, pushing buyers into a home-buying frenzy. And with good reason: Rates are expected to continue their gradual climb.

However, with today’s financial and political uncertainty, the ‘when’ is anybody’s guess. Meanwhile, home shoppers are trying to take advantage of added opportunities to up-scale (size, location, amenities) as even mere fractions of a point could add up to hundreds more per month in mortgage payments.

Feel like you’re riding the crazy train when it comes to today’s real estate trends? Stay up to date on the latest sanity-saving suggestions and lock-down your marketing arsenal with the help of Properties Online today.

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.

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

Is New Home Construction Cutting Into Your “Game”?

Sales a little lackluster recently? Real estate selling may be a little tougher in upcoming months, courtesy of new home construction, which has jumped substantially. Adding to this complex quandary: Buyer ignorance of the new home buying process.

How many new homes are we talking?
According to the U.S. Department of Commerce’s monthly new residential construction report, the number of brand-new homes completed and ready for real estate selling in August jumped 4.9% from just one month prior, up 6.7% from one year ago. The new homes, finally seeing a jump in the entry-level market versus the industry’s past preference for luxury builds, are hoped to alleviate the current housing crunch – although they are still expected to fall short of what’s needed.

Is the end nigh?
Nope. Builders are convinced of demand, prompting an increase in permits, rebounding from July and up 12.5% from July to August – 8.7% year-over-year. Permits and construction of new condos and apartments are also rising.

New homes, where are they?
Primarily in the South (51,000 builder permits in August), where companies and people are migrating to enjoy a lower cost of living. The West also saw a 14.5% rise in permits from the previous month, at 25,300. The North saw a large rise percentage-wise, up 16.7% at 9,800, but land is scarce and expensive, holding builders back.

Homebuyers, where are they?
Many are sticking their heads in the sand, shopping new models and hoping for reduced prices in the amount of agent commissions, not understanding these costs are commonly built into the price of homes. Others are ignorant, viewing homes solo, losing their opportunity for realtor representation, and leaving builders to pocket the money.

Are you focusing your real estate selling efforts on reaching these lost or misinformed buyers? Uncover new opportunities for building your client base with the help of the extensive services of Properties Online. Uncover your potential. Contact us today.

Have You Noticed These Real Estate Trends? We Have!

Are You Seeing these Predicted Trends in Your 2016 Business Now?

With the best housing year since 2007 behind us, real estate trends point to 2016 as an even better year, with economic growth and employment continuing their climb, offering people increased opportunities to upgrade their homes or buy their first one.

What real estate trends will have the biggest impact on the housing market in 2016?

1. Normalcy.
Yep. That word we haven’t used to refer to the housing market in quite some time. Healthy growth will continue, but at a slower, more balanced pace than 2015.

2. Generational shuffles.
The rising wages of Gen Xers will allow them to step-up, while older Boomers seek to retire and downsize, providing much of the inventory Millennials will be on the lookout for. Representing one-third of the market in 2015, they are expected to dominate again this year.

3. More affordable new homes.
New construction will be trending toward more affordable, single family homes in 2016 (over the limited luxury market) as credit access improves.

4. Higher mortgage rates.
Rising rates will present a mixed-bag, with some mortgage volatility expected again in 2016. Thirty-year fixed-rates are predicted to end the year about 60 basis points higher than today. The increase will be manageable for most consumers – barring those in higher-priced markets, which are expected to slow. Mostly, however, the effect of rising rates will be minimal as buyers rush to take advantage of rates before they climb.

5. Rents outpacing home prices.
As renters continue to be crushed by rental rates exceeding 30% of income in more than 85% of rental markets, home prices are moderating. This is making homes more affordable to buy for those with a stable income, able to save a down payment, and with clean credit.

What’s does the future hold for you? With knowledge of up-and-coming real estate trends from Properties Online, you can come out ahead. Take advantage today!

Commercial Real Estate Delinquency Rates Climb

Ten Emerging Trends in Residential Real Estate

Times are always changing, and that seems to be particularly true for real estate trends these days. What upcoming summer trends do you need to know about in today’s hot housing market?

1. Rising prices.
Home affordability is on the decline as prices continue to rise faster than wages. The average buyer now invests over 30% in mortgage payments. High rental rates keep the market attractive, however, with most buyers saving money over renting in as little as 2 years.

2. Leveling markets.
The country’s hottest markets (San Francisco, Boston) are leveling off, with growth returning to normal.

3. Tight inventory.
New home builders continue to struggle to meet demands in their recovery. Inventory, particularly for starter homes, will remain tight, with fewer distressed properties for sale.

4. Rapid sales.
One-third of properties disappear within 30 days of listing, with 62% facing bidding wars.

5. Mortgage accessibility.
Relaxed guidelines for borrowers are allowing for more purchases, with 3/4 of loan apps closing, compared to just 2/3 last year.

6. Rising rates.
Rising rates aren’t chasing away buyers, who still feel pressed to take advantage of near-historic lows.

7. Disappearing cash.
Cash purchases, making up nearly 47% of the market in 2011 and 33% just last year, are projected to decline to their historic average, 25%, by the middle of next year.

8. Mom-and-pop investors.
Gone are yesteryear’s institutional investors. Now mom-and-pop investors are entering the investment market, taking advantage of the current real estate trend of ditching stocks in favor of the landlord/vacation rental game.

9. Trendy townhouses.
High-density “urban villages,” comprising 12% of new construction, are favored by first-time buyers and Boomers looking to downsize.

10. Return to the ‘burbs.
Urban homes have risen so quickly, more than half of buyers are looking to the suburbs for opportunities.

Don’t fall behind the times. Stay up on the latest real estate trends with the help of Properties Online today.