Myth: Housing Bubble 2019

 Experts in the United States seem to be in agreement that a housing bubble is an impossibility due to low supply of houses being built, along with other factors. To learn more please see the link to the full article below: https://www.floridarealtors.org/NewsAndEvents/article.cfm?p=2&id=377114

NAR just released a Home Buyer and Seller Study for 2018

A study done by the National Association of Realtors has revealed some surprising and important information about the habits of Buyers and Sellers in the United States. 


If I may offer some advice on the statistics below, although online searching is the top way Buyers look for property it was a faster process to use a realtor. Realtors offer an expertise in a geographical area, as well as, tools to narrow the Buyer's search proficiently.   

As for the statistics where Sellers only interviewed one agent before using them as a Listing agent, I suggest otherwise. I understand when you meet the right person you "just know," especially in romance but for selling your home it is always wise to do your research. Much like the Buyer of today, a Seller should check out a realtors' presence online, their reputation through reviews, and meet with more than one agent. Word of mouth is equally important, a Seller's number one way to find an agent is through a friend or family member. However, agents are not one size fits all.  Find the agent who will best represent you and knows your market. When meeting with a listing agent ask about their online marketing strategies and virtual reach. As the Buyer's stats indicated, a strong online marketing campaign will impact the sale of your home.  
Here are some highlights from the study:


Home Buyers:

•           78 percent of recent buyers found their real estate agent to be a very useful information source. Online websites were seen as the most useful information source at 88 percent.

•           Buyers typically searched for 10 weeks and looked at a median of 10 homes.

•          The typical buyer who did not use the Internet during their home search spent only 4 weeks searching and visited four homes, compared to those who did use the Internet and searched for 10 weeks and visited 10 homes.

• Ninety percent of buyers would use their agent again or recommend their agent to others.

•         Detached single-family homes continued to be the most common home type for recent buyers at 82 percent, followed by eight percent of buyers choosing town homes or row houses.

• Of buyers who said saving for a down-payment was difficult, 50 percent of buyers reported that student loans made saving for a down-payment difficult. 37 percent cited credit card debt, and 35 percent cited car loans as also making saving for a down-payment hard.

Home Sellers:

• 91 percent of home sellers worked with a real estate agent to sell their home.

•            Sellers typically lived in their home for nine years before selling, down from last year.

•          75 percent of recent sellers contacted only one agent before finding the right agent they worked with to sell their home.

•           FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $200,000 last year (up from $190,000 the year prior), and significantly lower than the median of agent-assisted homes at $264,900.

• Ninety percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home.

One final thought, when finding an Agent go for quality over price. Agents work on commission. Their time is an upfront commitment of the work they will do for you. That being said, you get what you pay for. The expertise of an agent, their marketing, their research, and their negotiation skills are assets you can't afford not to have on your side. A great agent isn't a price-slashing, over-promising slick rick. A great agent is hard working, knowledgeable professional who is there to do the hard work so you don't have to!

Written by: Anycia Villa | Jan 29, 2019

For Generational Trends: https://www.nar.realtor/sites/default/files/documents/2018-home-buyers-and-sellers-generational-trends-03-14-2018.pdf

Home Buyer and Seller Study: https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

Is co-living the next big movement in the future of South Florida Real Estate?

Written by: Anycia Villa | January 28th, 2019

According to an article written by Florida Realtors®, "Co-living has become a growing trend in real estate, as more renters and homeowners look for roommates so they can afford a home." With a clear gap between annual salaries and the cost of living in South Florida, it seems many young adults who wish to live in metropolitan areas such as Fort Lauderdale or Miami are turning to co-living spaces. What makes co-living different from having a roommate? Well the origins of co-living don't come from the single roommate theology. An article by Business Insider describes the origin of co-living spaces as, "The 'hacker house,' 'commune,' or whatever your preferred name for dwellings that pack in a large number of residents..." The large number they are referring to is upwards to 5 or more roommates in large open style apartments, or 3-5 bedroom homes. Business Insider goes on to explain that the co-living spaces are often inhabited by adults working in the same or similar field. 


The earlier referred "hacker house" was a term popularized by startups in San Francisco who would create think-tank homes for programmers, gamer designers, and other entrepreneurs. These working minds needed a place to stay with low rent while they put forward their next big idea or venture. With the growing prices of rent in places like San Francisco, where the average rent currently for a studio is $2,461 for about 500 sq ft, co-living offers much more for much less. Often, a designed co-living
 space offers amenities such as WiFi and maid service included in the rent. Startups like OpenDoor and WeLive help connect potential tenants with a co-living "community." 


How did South Florida, the other coast to the South, get involved? Well according to the Florida Realtors article developers want to buy in on this trend to build more developments and homes designed for co-living. Meaning many smaller bedrooms with more square footage dedicated to common or shared areas in a single dwelling. 


South Florida has also recently been in the media's eye for its growing art and startup scene similar to it's cousin on the west coast, San Francisco.  Jorge Gonzalez, president and CEO of City National Bank when asked about Miami's growing economy was quoted, "Our diverse culture and proximity to Latin American has been a major draw for tech companies, entrepreneurs and start-ups. Being considered for Amazon’s HQ2 speaks volumes about what’s happening in our community." Although South Florida failed
 to land the Amazon HQ2 it is still attracting attention from its established tech companies such as, Ultimate Software in Weston, Magic Leap in Jupiter & Plantation, MAKO Surgical in Davie and Citrix Systems in Fort Lauderdale. 


South Florida's growing entrepreneur and startup economy seems to have created the perfect biosphere for what is co-living. It is no wonder the developers want to wrangle this cash cow. 

Florida Realtors Full Article:
https://www.floridarealtors.org/NewsAndEvents/article.cfm?id=376243

Business Insider Full Article:
https://www.businessinsider.com/what-is-co-living-2017-2

RentCafe: 
https://www.rentcafe.com/average-rent-market-trends/us/ca/san-francisco/

Quote source: 
https://www.miamiherald.com/news/business/article223912690.html

Housing market will be slower, steadier in 2019

          The market is starting to stabilize which translates to homes sale prices decreasing or maintaining rather than increasing. There will be some growth but it will be slower than the previous two years. The hottest price point right now for buyers in South Florida is 400,000-550,000. With the amount of inventory coming on the market, homeowners are facing a buyer's market. This means that homes are worth what buyers are willing to pay for them to a reasonable degree.         
     According to Florida Realtors®, "For home sellers, they need to recognize those days of frenzied market are over. They must price competitively to sell their home," said Lawrence Yun, the chief economist at the National Association of Realtors. "For buyers, there will be challenges when it comes to rising interest rates, but they don't have to make hurried decisions anymore."
Check out full article here:
https://www.floridarealtors.org/NewsAndEvents/article.cfm?id=375518

Paramount Fort Lauderdale Beach condos break ground

More than half of the 95 luxury condominiums are under contract at the Paramount Fort Lauderdale Beach, developers said Monday. 

Check out this article on Sun Sentinel! http://www.sun-sentinel.com/business/realestate/fl-paramount-fort-lauderdale-20141215-story.html

Reese Witherspoon Just Bought a $12.7M Pacific Palisades Pad

Thursday, September 11, 2014, by Lily di Costanzo

Credit: http://curbed.com/archives/2014/09/11/reese-witherspoon-just-bought-a-127m-pacific-palisades-manse.php

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Looks like Reese Witherspoon is on something of a real estate roll as of late, first listing her Brentwood, Calif., home for $14M, next scooping up a fixer-upper in Nashville, and now dropping $12,705,000 on a secluded manse in Pacific Palisades, Calif. Previously owned by architect Ken Ungar, the five-bedroom, 4,344-square-foot property recently received a full renovation—he "created an estate worthy of an A-lister" says Trulia Luxe Living—which actually looks pretty bland, with a whole lot matching beige carpeting and walls. The listing photos aren't great either, but go ahead and take a look anyways, below:

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Average 30-year loan rate rises to 3.93%

 

Mortgage Rate Trend Index

Only 18% of experts polled by Bankrate.com this week expect rates to drop over the short term. The rest predict rates will remain steady (36%) or go higher (46%).

WASHINGTON (AP) – Dec. 12, 2014 – Average U.S. long-term mortgage rates edged higher this week after four weeks of declines, but they remained at historically low levels that could entice potential homebuyers.

Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year mortgage rose to 3.93 percent this week from 3.89 percent last week. It is now at its lowest level since June 2013.

Rates are about a half-point lower than at the beginning of the year, when the benchmark 30-year rate stood at 4.53 percent.

The average for a 15-year mortgage, a popular choice for people who are refinancing, increased to 3.20 percent this week from 3.10 percent last week.

Rates had fallen in earlier weeks amid economic slowdowns in Europe and China, and the start of a recession in Japan. The four-week decline came despite the recent end of the Federal Reserve's monthly bond purchases, which were intended to keep long-term interest rates low. There is speculation in financial circles that the Fed could abandon in mid-2015 its longstanding policy of holding shorter-term rates at near-zero levels.

Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.17 percent Wednesday, down from 2.28 percent a week earlier. It traded at 2.19 percent Thursday morning. Bond yields rise when bond prices fall.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year mortgage also remained at 0.5 point.

The average rate on a five-year adjustable-rate mortgage rose to 2.98 percent from 2.94 percent. The fee was steady at 0.5 point.

For a one-year ARM, the average rate slipped to 2.40 percent from 2.41 percent. The fee held at 0.4 point.

 Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. To read more visit: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=317044