Connect with us

Real Estate Big Data

March data shows prediction for home sales to decrease during summer

(REAL ESTATE BIG DATA) March of 2020 is the month that changed everything because of COVID-19. Experts say residential home sales could fall 30-40% and here’s why.

Published

on

march home sales

Economists tell us that there is an ebb and flow to our economy. Any time there is a recession looming, the housing market takes a big hit. People aren’t moving to new jobs in new cities as much nor are they looking for their next home purchase if no additional income is coming in – so they stay put.

Many Americans have also lost their jobs, small business owners have lost their customers, and all of this takes away buying power and consumer spending. Some may have started 2019 or 2020 with dreams of upsizing or downsizing, moving to a different school district for their children, or making a move to a more desired climate.

One challenge in the current economy is that sellers do not want to lower their expectations on the price they should get for selling (which is sometimes an incentive for buyers) and buyers may have had to change their priorities or hold off on making a purchase – or be unsure that they can sell their current home when looking to buy a new one.

Experts suggest that this summer, which is the timeframe we typically see as being the hottest time for buying and selling homes, there could be a 30-40% drop in home sales due to the coronavirus. But there’s another issue at hand – inventory. It’s just not there.

The average amount of homes sold in the US in 2019 was 5.34 million according to data from statista. According to Yahoo! Money, “Last month’s inventory of 1.50 million homes for sale was the lowest March figure on records dating back to 1999, according to the NAR. That was also down 10.2% from a year ago.

March sales activity partially captured the effects of the efforts to contain the pandemic, which included social distancing and the shutdown of non-essential businesses in many parts of the country.

While housing sales edged up 0.8% from a year ago, the increase was boosted largely by sales of homes priced at $250,000 and higher. Homes priced at $100,000 or less saw a 18% drop in year-over-year sales, while homes between $100,000 and $250,000 fell 4%.

Trading Economics tells us that “Sales of new single-family homes in the United States plunged 15.4 percent from the previous month to a seasonally adjusted annual rate of 627 thousand in March of 2020, below a downwardly revised 741 thousand in February. It is the lowest reading since May of 2019 and the biggest drop since July of 2013… At March’s sales pace it would take 5.4 months to clear the supply of houses on the market.

We hope for the best and that everyone can just hold on for a little bit and that this is just part of the ebb and flow. Our economy has seen ups and downs, booms and recessions, so of course, we are all holding our breath a bit hoping to ride out this storm.

Erin Wike is a Career Coach & Lecturer at The University of Texas at Austin and owner of Cafe Con Resume. Erin is fueled by dark roast coffee with cream AND sugar, her loving husband, daughter, and two rescue dogs. She is the Co-Founder of Small Business Friends ATX to help fellow entrepreneurs + hosts events for people to live a Life of Yes with Mac & Cheese Productions.

Real Estate Big Data

An effortlessly easy way to combat negative reviews from non-customers

(MARKETING) Some reviews are blatantly fallacious, so what should you do when a groundless, nasty comment is left about you?

Published

on

reviews Woman seated on ground writing cold email to clients.

Have you ever found a business through Yelp that you wanted to like but just couldn’t make up your mind about because of the contrasting reviews of the place? Like a restaurant with the best service but had cold soup and an unresponsive hostess, or a B&B that was warm and clean but had an owner who did not provide the second B come morning time?

Some of these outlying negative reviews can be telling of the business, and I always make sure to read them in case I set my expectations too high (like I did for the eggs benedict from that diner up north).

However, while most reviews do reflect a genuine experience and are useful to would-be customers, others can be exaggerated or even outright falsified.

One such encounter one of our team members had was when searching for a private firearms trainer. Her online search had taken her to a trainer she liked. However, the comments on Yelp for the trainer were horrible.

Before she ran the other way, she saw comments from the trainer that simply said, “This person is not a verified client of [Company Name].” Apparently, he made a tv news appearance advocating for a specific gun right, and people from all over the globe made negative comments.

The fact that they weren’t his clients made her totally disregard their comments, because those reviews weren’t based on his professional performance. Guess who she hired?

Sites that allow anyone to review an unlimited number of businesses naturally risk exploitation. Such review sites make it possible to communicate quick, personal experiences about any business out there, and that also means an easy dig from a disgruntled customer to the place that hurts a company most.

It is up to the business to stay vigilant about what is being said out there and seek out ratings and review platforms that verify customers.

Since customers rely on sites like Yelp, businesses need to maintain their profile in the same way they would maintain their storefront. Just as they would fix the broken lighting in their lobby, they need to acknowledge any unreliable reviews a cranky customer may write about them. By having a human presence on these sites, businesses can breed a sense of integrity and accountability that others will pick up on.

If those scathing and seemingly random reviews had been acknowledged by the supposed perpetrators, I would have had an easier time overlooking the more exaggerated claims, just like my team member did.

By responding, the business provides context for the incident, but more importantly, it shows that they care.

Continue Reading

Real Estate Big Data

Fall has brought record rent prices and they’re not slowing down

(REAL ESTATE DATA) A market saturated with buyers and fewer homes, along with current job growth, is causing just as much demand for rent as to own.

Published

on

for rent sign in front of house yard

September 2021 reported an increase in rent for single-family homes from 2.6% in 2020 to 10.2% in 2021. A market saturated with buyers and little homes to choose from, along with current job growth, is causing just as much demand for rent as to own.

93% of people surveyed believe owning a home is a good investment, but many are being forced to rent even with sky-high prices due to the current state of homebuying. Buyers feel like the competition is too fierce or that a market crash resembling the 2008 crisis is looming in the near future.

Even more so than apartment complexes, private rentals of single-family homes are being scouted as they provide more room for multiple roommates or a family. Millennials aging into marriage and adulthood that would like to buy a home, but don’t feel it is the right time, are settling for paying double the mortgage of a single-family home in order to wait out the market.

“Single-family rental vacancy rates remained near 25-year lows in the third quarter of 2021, pushing annual rent growth to double digits in September,” said Molly Boesel, principal economist at CoreLogic. “Rent growth should continue to be robust in the near term, especially as the labor market improves and the demand for larger homes continues.”

Some particular markets are heating up while others are cooling off. Miami, FL saw a 25.7% gain year-over-year with the highest median rent prices across the entire US. Phoenix, AZ, and Las Vegas, NV take the second and third spots at 19.8% and 15.9%.

“Austin, Texas, and San Diego rounded out the top five markets for rent growth.”

On the other hand, major metro cities such as Chicago, Boston, Philadelphia, Washington D.C., and New York City are seeing lower rent growth, still 5% above mid-pandemic rates.

Continue Reading

Real Estate Big Data

Cities and states where renters eviction protection policies are still in place

(REAL ESTATE BIG DATA) Even though the national eviction ban has lapsed, 7 states and over 20 cities still have policies in place for renters eviction protection.

Published

on

UnTil Debt Do Us Part representing renters debt

Half of the renters in the United States still have some protections available due to the coronavirus pandemic.

Many of these renters were those who were tenants before, during, and “after” the pandemic though the effects are still lingering. Some new renters have had to enter the expensive rental market scene after being discouraged when attempting to buy a home. Those that are over the bidding wars, rising prices, and dwindling options are stepping out of the home buying process and are opting to rent instead, driving rental prices sky-high. It’s a lose-lose situation either way.

The Supreme Court ruled in August 2021 that the national moratorium on evictions was overreaching, even though the policy had been in place since September 2020. In response, many states and cities are setting their own limits.

Even though the national eviction ban has lapsed, 7 states and over 20 cities still have policies in place for protection. More than 15% of renters are behind on payments with the average debt owed is $3,700. Though in some areas, the debts amount to $10,000 per household.

New Jersey and New York tenants can’t be evicted until the new year in most counties. In New Mexico, renters also can’t be pushed out for late payments, but the end date for that protection has not been established.

In Connecticut and Virginia, landlords can’t evict tenants who have applied for federal aid. In LA, the eviction protection ends January 31, 2022, in Austin, TX, December 31, 2021, and in Seattle, January 16, 2022.

In Oregon, Massachusetts, Michigan, Minnesota, and Washington D.C., eviction proceedings are paused for those that have their renter’s federal assistance application pending. In Nevada, showing that you’ve applied for rental assistance is considered a defense against eviction until June 2023.

$45 billion in aid is allocated by Congress for federal rental assistance, but less than $13 billion has been used so far.

If you are still in need of assistance and don’t reside in any of the areas above, consult location advocates and learn your rights to see what protections are available to you.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox