Looking into the future
Professionals Realty Group USA President, Glenn Melton reports that the recent Chinese government’s liberalization of restrictions on investing capital outside of the country, will have a positive trickling down affect on real estate brokers and agents’ business in the United States.
“The relaxing of Chinese foreign investment policies will create an influx of Chinese investment capital overseas,” states Melton. “This will spur investments in the Asia Pacific regions, as well as the United States; especially given the concern that central government intervention to contain overheated domestic housing prices will lead Chinese investors to seek other opportunities abroad.”
Melton notes that U.S. Congress is also actively finding new ways to spur international investment in the U.S., for example, bi-partisan legislative bill introduced by Senators Charles Schumer (D-NY) and Mike Lee (R-UT) proposes to offer a temporary residency visa to immigrants who spend at least $500,000 on a home in the United States.
For real estate professionals in America, this means that the real estate investment sector is “rapidly evolving with more investors interested in real estate portfolios than one-off transactions – and we will truly see its fruits in the next 18 to 24 months. Real estate brokers and agents have an opportunity to be ahead of the curve and take a bigger position in the investment real estate space, whether foreign or domestic.”
He adds, “Establishing easy and safe access to American real estate now will position real estate professionals for a natural flow of investment business down the line.”
Melton’s assessment of the 2012 investment sector is in line with various economists as well as the Urban Land Institute (ULI) which publishes a variety of forecast reports each year (click here for ULI reports).
AGBeat is not affiliated
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
Business News1 week ago
Everyone should have an interview escape plan
Opinion Editorials4 days ago
The actual reasons people choose to work at startups
Opinion Editorials1 week ago
7 ways to carve out me time while working from home
Opinion Editorials3 days ago
10 tips for anyone looking to up their professional work game
Opinion Editorials5 days ago
4 simple tips to ease friction with your boss while working from home
Business Entrepreneur5 days ago
4 easy ways to keep track of inventory this holiday season
Business News4 days ago
Corporate-franchise relationships: How has COVID affected them?
Business News5 days ago
What to do if you think you have been wrongfully terminated