Financial Matters

Projecting our Current Real Estate Market Update & Trends

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How’s the real estate market? It’s pretty much a question I anticipate to have an answer for more than a few times a week. Some coming from prospective buyers sitting on the fence while others are debating on downsizing and unsure of making a move. But the majorities are from tenants and I can’t say I blame them. They are exhausted with the cost of high rentals, which I might add are HIGH! 

The national median rent rose 20 percent faster than overall inflation between 1990 and 2016 and the median home price rose 41 percent faster. According to the Joint Center of Housing

Studies at Harvard University:

In a nutshell what is clearly happening, the price of rentals is rising higher and faster than inflation and wages.  Low cost housing has pretty much disappeared and most who took advantage of the foreclosure crisis, well those days have almost come to a halt.  It’s harder to save for a home with the escalation of rent. 

The market by most reputable tracking measures for home buying is not so healthy as we have low inventory and more buyers wanting to ditch the high rentals. Buyers who want to get out the rental loop are finding themselves in bidding wars with just not enough homes to choose from. Most owners who have good equity are generally older, owned their homes longer and in the best position to perhaps sell are sitting still because of high rentals or the high cost of some Senior living facilities and have chose to go with reverse mortgages.  I find that extended family living is increasing like never before, just so that younger singles or couples, families can afford to save for a home. 

New construction in the median price range is not happening for the most part. It is far too costly for the materials for builders to add to the decreasing inventory due to labor costs, land and material. The risk for builders is just not there and I have asked this question personally of many and they are more into building luxury or custom style high-end homes.

Homes priced $250k and under are harder to find. Million dollar homes fare better as it may be more inventory and buyers. $300-$600k have an over abundance of homes but not enough buyers and now are in competition with the new builds that are a half a million and up. Not helping in all of this, mortgage rates are on the rise, making more reluctant now. But don’t let that stop you, it will go up before down and ask about those first time home buying programs, MSHDA and grants available.

 Meanwhile, “inventories in luxury homes valued in the million-dollar range are increasing slightly,” Aaron Terrazas, economic research director at Zillow, said on “Power Lunch.”

As a realtor, I often times just want to flip my lid, as there are plethoras of lead generating companies and SEO services asking us realtors to pay a price to be listed as the top realtor of my, or any area with staggering prices to be featured as #1. Hmm? Not declaring that all do this, but there are many out there targeting realtors, making this claim, but there is a need to increase inventory for buyers & without sellers can be a daunting task at times. Your sphere influence and your social media, people you know, putting yourself out there is free to do. SEO’s must be highly proven reputable.

Bottom-line, keep up and know the market and what it’s doing, there is only so many buyers, who like myself are waiting for those homes of their dreams or those sellers on the fence, and my client wins the bidding war. I have wonderful past and new clientele and referrals that can’t always find a home. Make sure you understand the “true” overall picture. Pricing right used to be the best strategy, still is, but without enough buyers, “motivated sellers” is not the cure all if you don’t fit the motivated buyer who has all their ducks in a row.

I have weathered this storm going into my 25th year. I have seen the best, worst and near impossible projections of doom, yet we bounce back. We just have to become more creative and hope for the best and come up with some great ideas.

It’s got me this far! Good luck and don’t give up, we cannot become a nation of renters where only some are doing well and realizing the “American Dream” if that is still to survive! And by Jove I still have ideas…daily!! Much Luck to you!

Karen Walls is an expert realtor, who specializes in serving professional athletes, senior citizens and veterans. Karen is a published real estate journalist and a passionate Alzheimer’s advocate. She has written many articles & sought out for interviews in different venues as a journalist covering a broad spectrum of topics.
Please visit fb/wallsyoudeserve for the best timely updates on buying and selling!

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