What's Trending in Real Estate

What's Trending in Real Estate

These six hot topics are gaining traction.

SEPTEMBER 2013 | BY GRAHAM WOOD

Be sure to stay ahead of the curve.

1. Generation X jumps to the top. Generation X—those ages 33 to 47—made up the largest chunk of home buyers, at 31 percent, between July 2011 and June 2012, according to the National Association of REALTORS®’ “Home Buyer and Seller Generational Trends” report. Generation Y—those 32 and younger—made up the second-largest group, at 28 percent, followed by younger baby boomers (18 percent) and older baby boomers (14 percent).
2. Mobile real estate search. Consumers are taking to their mobile devices in droves for real estate searches. According to online marketing firm The Search Agency, real estate ad clicks on smartphones grew 10.7 percent between the fourth quarter of 2012 and the first quarter of 2013. Tablet ad clicks shot up even higher, increasing 20.2 percent quarter over quarter—and 87 percent year over year. It all goes to show that consumers are becoming far more comfortable searching for real estate on mobile devices.
3. Paperless business. Want to spend more time helping clients and less time dealing with all that paperwork? There’s a plethora of online tools that allow you to file and manage documents electronically, One option is RES.NET. In addition to keeping all his paperwork stored securely online, San Diego sales associate Jesse Zagorsky of SDREOSold likes that it lets him link his profile to all of his transactions. It also allows him to communicate with everyone involved in each transaction. “The system [frees] up my time to spend helping customers,” he says. And don’t forget DocuSign, a program for creating and transmitting documents electronically from any device. (Discounts are available to NAR members through the REALTOR Benefits® Program.)
4. Reversal of fortune in inventory? The complaint is widespread: Housing inventory has been stubbornly low in the past year. Well, perhaps that’s starting to change. The number of listings nationwide ticked up by 4.3 percent to 1.9 million homes on the market in June, according to realtor.com®. That’s the highest monthly jump in a year, and rising home prices could persuade more sellers to throw their homes on the market in the coming months.
5. Drone photography. The use of miniature remote--controlled -helicopters for taking aerial photos and -video of properties is piquing interest among real estate agents. But it’s important to note that this marketing practice currently violates Federal Aviation Authority rules pertaining to the use of drones for commercial purposes. The agency is expected to release proposed rules for such use later this year. Congress has given the FAA until September 2015 to finalize a plan. Six states have put laws on the books restricting the public and private use of drones. NAR recommends that REALTORS® avoid using drones until the FAA has released clearer rules.
6. Micro apartments. In some major metropolitan areas, people are living large in smaller spaces. So-called micro apartments—which are often less than 200 square feet—are becoming popular in San Francisco, New York, Seattle, Boston, Providence, R.I., and Portland, Ore., reports CNN Money. But it’s not only those just-out-of-college grads flocking to these tiny units. In some “micro buildings,” the average tenant is 33 years old and makes less than $35,000 a year, according to Reuters.

Dallas Home Prices Now 4% Over the 2006 Boom

Just the Facts

Top Schools Equal Higher Home Prices

An analysis by Redfin illustrates the steep price premiums that homeowners are willing to pay for homes served by top-ranked schools, offering the latest concrete evidence that buyers place remarkable importance on the quality of schools.  Redfin’s study found that buyers pay an average of $50 more per square foot for homes served by top-ranked schools than for those served by average-ranked schools. It also found that, even within the same neighborhoods, buyers will pay substantially more for homes served by top-ranked schools than they do for comparable homes served by average-ranked schools.  The online survey, conducted this summer, found that of those who said school attendance boundaries were important:

* 23.6 percent would pay 1 to 5 percent above budget.

* 20.7 percent would pay 6 to 10 percent above budget.

* 9 percent would pay 11 to 20 percent above budget.

* 40.3 percent would not go above budget.

        -      Inman News, September 25, 2013

Dallas Home Prices Now 4% Over the 2006 Boom

Dallas and Denver are now the two American cities where home prices has reached and surpassed the levels in the 2006-2007 boom.   And price increases are expected to continue into 2014.  Most Americans (55%) think home prices will go up over the next 12 months, according to a new Bankrate.com report.  "It seems like Americans' love affair with real estate has returned," said Greg McBride, CFA, Bankrate.com's senior financial analyst.   There is concern on the part of some prospective home buyers that prices may be running away from them, said McBride.   "The housing market is aiding the economic recovery," he said.   

-          Dallas Morning News, September 25, 2013 (excerpts)

All Top 100 Markets Gained in July

The July report for Homes.com showed gains for single-family properties in all 100 markets, up from 87 in the previous reporting period.  The Homes.com Local Market Index has been expanded to include midsized markets ranked from 101-300. It provides a closer look at smaller markets nationwide, showing increases in 293 of the top 300 markets, up from 250 the previous month. Year-over-year, all midsized markets increased.  Rebound data for July 2013 in the top 100 markets revealed that 22 markets across the U.S. are fully recovered – up from the previous month’s 19 markets. Additionally, 44 U.S. markets now show a rebound of 50 percent or more, up from 41 in last month’s report.

-          RISMedia September 25, 2013