Friday, March 27, 2020

How to Buy a House Right Now

How to Buy a House Right Now

How to Buy a House Right Now
As we navigate the (hopefully temporary) new-world order in an attempt to control and contain the global coronavirus pandemic, the real estate industry is making its own constantly evolving set of adjustments. The industry over the past few weeks has centered around two major themes: 1) Super-low mortgage rates that have created a refinancing boom; 2) And the possibility that the coronavirus will force a widespread pause of mortgage payments. 
These are uncertain times, to be sure. But those same low rates that are driving refis are also attracting homebuyers. “The 30-year fixed mortgage rate hovers above 3 percent, the lowest that it has been in nearly 50 years,” Andrina Valdes, executive sales leader and CEO of Cornerstone Home Lending, Inc., told Apartment Therapy. “The lower the mortgage rate, the lower a monthly mortgage payment is likely to be. So, anyone who’s on the fence and thinking about buying a home could really benefit right now by purchasing at a record-low rate.”
The truth is, there are still homes on the market. There are still people who need to sell. And there are still people who need or want to buy. If you’re one of them, you’re probably wondering how to go about it. iBuyers have largely shut down entirely or shuttered at least temporarily, and several companies, including Keller Williams, have cancelled all open houses, “while smaller brokerages, like the about 100-agent New York-based brokerage Modern Spaces, has closed offices and sales centers, instead offering virtual walk-throughs and tours,” said Yahoo Finance.
So how can you buy something you can’t see? It’s time for technology to take over. “This time the use of technology may have a significant part to play in how the housing market can try and continue in a ‘normal’ fashion,” said Bindi Norwell, chief executive of the Real Estate Institute of New Zealand on One Roof.
That means that your house tour will probably be virtual. Agents are embracing the tech available to them to bring homes to buyers since they can’t bring buyers to homes.  
“As an alternative to in-person viewings, some agents are turning to tech, offering buyers virtual tours,” said the New York Times. “The NYC-based Ideal Properties Group launched a virtual listing viewer called Showings on Demand. 
Individual real estate agents have followed suit. Kendyl Young, Broker/Owner at Glendale DIGGS, just held a Facebook Live Open House for her new restored Post and Beam, mid-century modern listing near Brand Park in Glendale, with plans to do more. “I'll show you around the space and take your direction,” she said on Facebook. “Want me to show you a particular room? I will. Missed the part where I showed off the family room? Tell me—I'll go back. A close up of the super cool family room fireplace wall? I'll get closer. You are the PUPPET MASTER and I am at your direction.”
It’s all part of being able to adapt to clients’ needs during this time. 
“Buying a home will always be a very human experience, but we need to adapt to this crisis,” she told us. “Physical showings are not safe, and we can marry technologies like 3-D scans, Webb meetings, and video conferencing to provide a pretty reasonable virtual experience. We must find ways to serve our clients while staying safe.” 
Elle Jones of Keller Williams’ Harma Real Estate team is showing her new San Fernando Valley, CA listing, among others, via FaceTime. “If you'd like to view a house, I'm happy to go by and do a FaceTime walk through for you,” she posted on Facebook. “If you’d like to see my #Newlisting in #ShermanOaks even better! Let’s get through this together!”

Tuesday, March 3, 2020

The State of the Florida Real Estate Market In 2020

The State of the Florida Real Estate Market In 2020

Forbes has listed Florida cities, including Jacksonville, Miami, and Orlando among the best bets for real estate investors (2019-2020). Last year the market was exceptionally good and the same is expected in 2020. Florida indeed has one of the most rewarding real estate markets. There is a good reason behind all this. Florida is surrounded by the Gulf of Mexico, Alabama, Georgia, and the Atlantic Ocean. It is an international tourist destination. Its economy is dynamic and diverse. The government of Florida encourages pro-development and pro-business mindsets.  If you are looking to make any investments in the real estate market of Florida, this is the right time. Visit NRIA for better guidance and management of property-related matters.

Real Estate Market

Investors in Florida love its real estate market. According to a recent publication by the World Property Journal, the buying and renting of homes in Florida is in great demand.  Home sales have significantly increased by 11% over the past few months. The experts at Florida Times-Union stated that the real estate market of Florida will keep on growing at a rapid rate in 2020. Two main reasons behind this growth: the local economy is getting stronger and the population is increasing.

Market Stats

Let’s take a look at the key market stats:
  • In Florida, median home values have ramped up to 4.1% over the last year. It is estimated to grow by another 3.6% in 2020.
  • The median home value is approximately $238,600. Currently, Florida’s real estate market is ranked as “very hot” (As of October 2019).
  • In Florida’s market, the median listing price of any house is around $294,900, whereas the median selling price is around $227,500.
  • In Florida, 7% of the homes hold a negative equity vs. 8.2% U.S. average.
  • In Florida, 1.4% of the homes hold a delinquent mortgage vs. 1.1% nationally.
  • Approximately 16.5% of the properties listed for sale in Florida have a price cut during their listing period.
  • In Florida, the average period on the real estate market is 83 days.
The key stats for Florida’s real estate market vary by area.  Conduct detailed research on the market by taking into consideration cities, including Miami, Tampa, Orlando, Naples, Tallahassee, and Jacksonville.

Renters’ Market

In Florida, the renter market is also very strong. The University of Central Florida has predicted that “single-family housing will remain in short supply despite housing starts accelerating.” This means there is going to be an in equilibrium, i.e., demand > supply.

Market Stats

The key market stats for a renters’ market are given below:
  • Rental amounts have increased by approximately 30% since 2011.
  • The average rent list price per square foot is $1.36.
  • The median rent is $1,714/month in Florida vs. the median rent is $1,588/month in U.S.
  • The median monthly rents by bedroom in Florida range from $1,494 for a studio unit up to $2,135 for a four-bedroom house.
  • The percentage of rental households keeps on growing. Homeownership in Florida is 65.5%, the lowest level since 1990.
  • Homeownership rates in Miami, Tampa, and Orlando have all fallen below 50% – people are renting rather than owning places.

What’s Ahead for Florida Real Estate?

According to Miami Agent Magazine, the real estate market in Florida is going to be a key factor for its economic growth. Let’s recap how 2019 ended for the market and what’s expected for 2020.
Florida Realtor’s chief economist, Brad O’Connor, stated that, “unexpectedly low mortgage rates were the big story in last year’s housing market, leading to more home sales across Florida than originally anticipated.
“Meanwhile, home prices continued to march upward throughout the year, increasing affordability challenges in several markets across the state. The inventory of homes for sale remains low, and builders are still unable to satisfy the demand driven by Florida’s strong, vibrant economy.
“Primary focus of Florida Real Estate Trends 2020 will be to explore which of these trends will continue throughout the next 12 months.”

Housing Market In South Florida Ripe For The Picking

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