What an Article.. take a look for yourself!
What an Article.. take a look for yourself!
Economists say tight supply remains a thorn for brokers, developers and homeowners as new year approaches!
On Tuesday, the real estate industry breathed an unexpected, if temporary, sigh of relief with news that single-family housing starts spiked to 930,000 units in November, up 5.3 percent over October for a 10-year high unattained since the subprime mortgage crisis of 2007.
The gains piggybacked on increases in October, when overall housing starts rose to a strong annual rate of 1.256 million units in the aftermath of powerful hurricanes over the summer that slowed housing construction in Texas and Florida for three months before resuming in the fall.
But with inventory still treacherously low across the United States, economists and real estate analysts told Inman that bouncing back to a 50-year average rate of 1.5 million new units remains a challenge worth fighting for in 2018. Indeed, real estate experts agreed that inventory challenges will likely persist into the new year.
Currently, overall inventory for existing single-family homes and multifamily homes stands at 1.67 million, according to November data provided by the National Association of Realtors.
“We have gone 29 months seeing overall inventory decline on a yearly basis, and that’s had a long-lasting effect on the market,” said Javier Vivas, director of economic research at Realtor.com. “That should keep the total number of homes for sale constricted for the good part of next year. However, based on movement we detected this year, we also expect those inventory declines to decelerate slowly throughout next year, and overall inventory could stop shrinking as early as fall 2018. Growth in new construction will be key for that recovery.”
Svenja Gudell, chief economist at Zillow, said that, today, there are 12 percent fewer homes for buyers to choose from then there were just three years ago, and that, as of October, more than half of U.S. homes for sale were in the top one-third of home values. In other words, pricey.
“Inventory will remain a major concern in 2018, continuing to play a significant role in pushing up prices,” said Gudell, who predicted it will remain a seller’s market in the new year. “It will create particularly strong headwinds for first-time homebuyers, who don’t have the benefit of profits from a prior home sale to boost their down payment and make them more competitive.”
According to a Redfin housing market forecast, meanwhile, inventory will remain a major factor in 2018, continuing a trend that began three years earlier. The forecast anticipates small increases in inventory at the high-end of the market by year-end, but starter-home inventory, which has not increased meaningfully since 2011, will continue to stagnate in the new year.
“We’re just not building right — we’re doing it wrong,” said Nela Richardson, chief economist at Redfin. “Not enough, for sure, but it’s also kind of been misplaced and mispriced. We built up high-end homes in big cities and that works for highly paid millennials — and every city has them — but what we need now are starter homes for starter families, and we’re not seeing that kind of building. We’re not seeing building near transit and we’re not seeing building at the price points that people need and can afford — so that will still be a challenge going forward.”
Until that happens, the lack of inventory will continue to be a thorn for brokers, developers and homeowners, insisted Matthew Gardner, chief economist at Windermere Real Estate, who nonetheless believes that the number of homesellers overall will increase modestly in 2018.
“We continue to be stuck in a ‘chicken-and-egg” situation, whereby would-be sellers know that they will likely have no problem selling their existing home, but they will not list until they have found somewhere to buy, and if they can’t find somewhere to buy, they won’t list,” said Gardner, adding that affordability, closely intertwined with inventory, may emerge as the biggest issue of 2018. “I do expect to see an uptick in new home starts, but unfortunately it will not be enough to meet pent-up demand.”
Article WRITTEN BY: JOTHAM SEDERSTROM
Writing content on the go. My new website now accepts my blogging from my phone. This means up to the minute updates while I’m away so my website users get information first! How valuable is this for you?
“You’re Getting Old and Stiff”, this from my 23 year old son a few weeks ago in a conversation. It ticked me off, and I couldn’t stop thinking about it so I had one thing to do, a little research and put together an action plan to do something about it.
He was right but that’s besides the point. I had to accept that at nearly 50 years old, my body is just not responding or recovering like it once did, say in my 20’s or even my 30’s. I’m also sitting on 3 injuries which aggravate when I work out so that doesn’t help either. It made me think, what is the solution? I’ve done a ton of research recently so here it is:
When I am done for the 90 Days I will have lost roughly 30-40 lbs and will start a Speed and Agility program. Check out https://eagle-athletic.myshopify.com/collections/speed-and-agility
I have to say that I’m looking forward to the Transformation but more importantly I’m looking forward to the strength and agility so I can move around easier again. Follow along with me and see how I improve and what my gains are. Join me on facebook and share your results!
Follow along at https://www.facebook.com/MyPersonalFitnessJourney/?ref=ts&fref=ts
Jerel Washington Fine Homes and Estates is proud to announce our NEW partnership with Renee Cologne from RC Shelter. From California to Connecticut and Washington to Florida, Realtors across the country know one simple rule of thumb when it comes to selling a home… Photography gets the buyer in the door, home staging creates the story told in the photos. Home Staging is and integral part of the selling process in competitive markets. Not only does it help increase the desirability of a home in the eyes of the Buyer by 8-15 times causing purchase decision. It will most likely net the Seller the most amount of money!
Simply put… Staged Homes SELL FOR MORE MONEY AND IN LESS TIME! Isn’t that what all home sellers want? We are excited for this new partnership…
Jerel Washington & Renee Cologne, RC Shelter
Visit Renee online at the following locations:
HOUZZ – https://www.houzz.com/pro/rcologne1/rc-shelter-llc
LINKEDIN – https://www.linkedin.com/in/rcshelter/
Find your perfect Rental for as little as $1,500 per month. That’s right. We have a list of Excellent Condition, Move in Ready Rentals from $1,500 per month and up. Take the guess work out of looking for rentals, Take the Stress out of looking for rental and let my team find you the right property! As of 06/16/2016
1 – Cranbury
4 – East Windsor
17 – Ewing
1 – Freehold
26 – Hamilton
3 – Hightstown
15 – Hopewell
20 – Lawrence / Lawrenceville
1 – Millstone
1 – Monroe
1 – New Brunswick
3 – North Brunswick
1 – Pennington
6 – Plainsboro
40 – Princeton
14 – Robbinsville
10 – South Brunswick
4 – Trenton
33 – West Windsor
List Subject to Change Daily.
Are you a Seasoned Investor? No? How about a Novice Investor?… No?
If you’re a beginner or just someone who has interest in investing in Real Estate the key is working with a Mentor or a Guide who has all the resources, the experience and knowledge to get you through the process and access to the best sources to find you the deals you need to make a profit.
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Investment Properties range in value from Less than $10k to more than $500k. Depending on your experience, budget and timing we will find you properties the profit is all yours. Let’s Talk and put together a Plan of Action!
A Success Story: Keller Williams Realty
I am often asked to join competing real estate offices in my market. I find this flattering and I tend to take meetings with some of the area’s top brokers and offices to understand their business model, what they are offering and how they or their company might support the vision of the business I intend to build. Seldom do they see the vision is possible yet I cite example after example of agents who have built amazing business across the country and how they’ve done it.
Most respond by saying “If that was really possible I’d have stayed in sales,” or “Why would someone stay with a company and they could leave and build their own?”
My response is simple.
I say “It’s okay if you don’t believe what I’m telling you, why not see for yourself. You can believe your own eyes and your own ears. Listen to their story, review for yourself the business models and how other Realtors/Business Owners are implementing them to do what you’re doing for someone else.”
If you’re interested in a career in real estate, changing companies or just want to know more about Keller Williams Realty and the philosophy behind who we are, take a minute to watch this short video. I’d love to speak with you. Here is the Story of Keller Williams Realty. By all accounts this is a success story and it continues to be one I am proud of. Watch and enjoy then call me at 609.933.9044 and let’s have coffee!
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