Real Estate Market – California Sunset Team http://californiasunsetteam.com/ Thu, 23 Jun 2022 21:23:32 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://californiasunsetteam.com/wp-content/uploads/2021/09/californiasunsetteam-icon-120x120.jpg Real Estate Market – California Sunset Team http://californiasunsetteam.com/ 32 32 Central Valley CA housing market softens as federal rates soar https://californiasunsetteam.com/central-valley-ca-housing-market-softens-as-federal-rates-soar/ Thu, 23 Jun 2022 18:56:17 +0000 https://californiasunsetteam.com/central-valley-ca-housing-market-softens-as-federal-rates-soar/ After nearly two years of booming home sales and pandemic-fueled values, the Valley’s housing market has begun to slow slightly, primarily due to inflation fears and the recent rise in interest rates. ‘interest. Last week, the Federal Reserve raised its key rate by three-quarters of a point, the biggest rate hike since 1994, to combat […]]]>

After nearly two years of booming home sales and pandemic-fueled values, the Valley’s housing market has begun to slow slightly, primarily due to inflation fears and the recent rise in interest rates. ‘interest.

Last week, the Federal Reserve raised its key rate by three-quarters of a point, the biggest rate hike since 1994, to combat soaring inflation. But even before the rate hike, according to TrendVision data, home prices in Stanislaus County have fallen 2% in the past month, from 10.4% year-to-date in May to 8.4% in June.

Daniel Del Real, associate broker at PMZ Real Estate, said rising federal rates and associated mortgage rate hikes will further dampen demand in the region — but not necessarily by choice.

“Demand is still extremely high, but we are seeing demand destruction by increasing tariffs,” he said. “It makes affordability out of reach. This will lead to a slowdown in the market and put more pressure on the rental market. »

The Fed’s decision comes at the start of what is usually the busiest season for the housing market. Del Real said he expects to see some pullback in home prices as a result. But even if these fall, buyers in the area will now have to consider how much rising mortgage rates will affect the final price of their home.

Rising interest rates offset lower selling prices

In many cases, he said, rising rates will cost them even more in the long run than the initial drop in house prices they see. Del Real said mortgage rates were around 4.7% at the start of the year, but now, since the Fed’s decision, they have risen from 6% to 6.5%.

“Buyers will always pay more,” he said. “Buyers are already worried that their money won’t go that far. It’s harder to save because gas prices are up, energy prices are up, food prices are up. And wages do not (follow) as quickly as inflation rises.

The valley’s affordable housing problems, with more people wanting to buy homes than there are available affordable homes, continue despite rising inventory in the area, Del Real said. The TrendVision report shows that inventory in Stanislaus County has increased 57% since 2021, but 5.7% fewer homes have been sold and there were 5.1% fewer pending home sales over the course of of the same period.

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New housing construction at Founders Point by Florsheim and Fitzpatrick Homes on Carver Road in Modesto, Calif. on Saturday, May 14, 2022. Andy Alfaro aalfaro@modbee.com

Del Real said the area’s current housing problems stem from a decade of underconstruction in the county. Several new subdivisions are currently under construction, including some 550 single and multi-family homes being added in the new Founders Point, which has been under construction since last fall in North Modesto. Other projects, such as the Tivoli housing development in northeast Modesto, are expected to add more than 3,100 homes to the planned community when completed.

Advice for sellers, buyers in a changing market

Still, as new home construction continues to lag demand, Del Real said buyers and sellers should be prepared for the market to continue to ease throughout the year. .

“Be prepared for more inventory, less expectation and sales, and lower prices in the third and fourth quarters of this year,” he said.

Del Real said it was still a seller’s market, but not everything would sell quickly and for the best price without work. He advises sellers to get their homes in good shape and be realistic and creative about pricing and what people can afford given rising mortgage rates. Homes are also staying on the market longer, dropping from about four to five days on the market last year to two weeks.

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New housing construction at Founders Point by Florsheim and Fitzpatrick Homes on Carver Road in Modesto, Calif. on Saturday, May 14, 2022. Andy Alfaro aalfaro@modbee.com

For current tenants looking to buy, he advises to be patient and understand how mortgage rates will increase their total costs. Del Real said he expects market volatility to last a few years. If current prices are out of reach, he advises saving some of the amount currently budgeted for a mortgage so they have a better financial footing in the future.

“We had to tell customers to wait. I ask clients what would be a comfortable (mortgage) payment for them right now,” he said. “And if it’s $2,700 (and their rent is $2,000), save that extra $700 a month for a property. Then, over the next two years, they will be in a better position to enter the market. Start preparing today.

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New homes are built by KB Homes as part of the Patterson Villages development in Patterson, Calif., Tuesday, April 12, 2022. Andy Alfaro aalfaro@modbee.com

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New housing construction at Founders Point by Florsheim and Fitzpatrick Homes on Carver Road in Modesto, Calif. on Saturday, May 14, 2022. Andy Alfaro aalfaro@modbee.com

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New homes are built by KB Homes as part of the Patterson Villages development in Patterson, Calif., Tuesday, April 12, 2022. Andy Alfaro aalfaro@modbee.com

This story was originally published June 23, 2022 6:30 a.m.

Related Sacramento Bee Stories

Marijke Rowland writes about new commercial, restaurant and retail developments. She has worked with The Modesto Bee since 1997 and covers a variety of topics including arts and entertainment. His Business Beat column airs several times a week. And it’s pronounced Mar-eye-ke.
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Suze Orman’s advice for buying real estate right now https://californiasunsetteam.com/suze-ormans-advice-for-buying-real-estate-right-now/ Tue, 21 Jun 2022 16:41:49 +0000 https://californiasunsetteam.com/suze-ormans-advice-for-buying-real-estate-right-now/ The median selling price of a home in the United States topped $400,000 for the first time in May, the National Association of Realtors reported Tuesday. The news came just days after the 30-year fixed-rate mortgage rate hit 5.78%, the highest since the Great Recession. Still, personal finance expert Suze Orman thinks the housing market […]]]>

The median selling price of a home in the United States topped $400,000 for the first time in May, the National Association of Realtors reported Tuesday. The news came just days after the 30-year fixed-rate mortgage rate hit 5.78%, the highest since the Great Recession.

Still, personal finance expert Suze Orman thinks the housing market holds promise for U.S. consumers, though she says “the tables have turned a bit.”

In a new interview with Yahoo Finance Editor-in-Chief Andy Serwer, Orman offered advice to buyers and renters on how to navigate a difficult environment with both rising mortgage rates and skyrocketing rents. Orman encourages tenants to be in the best financial position possible, so they can afford inflated costs and potentially negotiate lower leases. And she advises home hunters to be realistic about whether they can afford higher mortgage rates, property taxes and insurance.

“Just watch the whole picture before you jump in,” she said. “I think it’s a bit different than it was a year or two ago.” In general, however, Orman suggests that a home is still a wise investment.

TODAY — Pictured: Suze Orman on Wednesday, May 29, 2019 — (Photo by: Nathan Congleton/NBCU Photo Bank/NBCUniversal via Getty Images via Getty Images)

“I don’t think you’re going to see homes really go down in value. You know, the truth is, real estate always does pretty well during a recession,” Orman told Yahoo Finance on June 20. “..If you own real estate, I don’t think you’ll see it drop dramatically. . Maybe you’ll only see it increase by 5% or 7% per year.”

Still, many experts are spotting signals that the housing market is cooling. Used home sales fell for the fourth straight month in May as interest rates rose. The forecast came a week before the Federal Reserve on Wednesday voted to hike short-term interest rates by 75 basis points, the biggest hike since 1994.

Speaking to Yahoo Finance, Orman acknowledged that the housing market is changing. Specifically, she said buyers won’t feel as pressured to bid on a home right away to beat competing bids.

“You’re not going to see a house come on the market, again, in my opinion, and get 30 offers above the asking price,” Orman said. “I think now you’ll see maybe three, four offers – maybe you need to lower the asking price a bit.”

‘It’s too late to refi’

The housing market was booming last year. The National Association of REALTORS of Home Buyers and Sellers’ 2021 profile found that the typical home sold was only on the market for one week. With short-term interest rates close to zero and 30-year fixed rate mortgages low (2.65%) in January 2021, potential buyers have been in luck.

That luck is starting to turn, even for existing owners. Fannie Mae’s Refinance Application Level Index estimates that only 2% of mortgages have more than 50 basis points of incentive to refinance as of Thursday.

“It’s too late to refi. You have to sit there without a shadow of a doubt,” Orman said.

Orman also warns buyers to be careful with variable rate mortgages.

“If you can only afford to buy a house because you take out an adjustable rate mortgage and you don’t know how it really works. I would be very careful with them if I were you,” warns Orman.

Adjustable-rate mortgages can start out with lower payments than fixed-rate mortgages, but you could experience payment shock, negative amortization (when you owe more than you borrowed), or repayment penalties anticipated if rates change.

Even if it turns out you can’t buy a house, tenants can take steps to lower their monthly payments.

“A landlord will really like you if you keep the property. You paint on your own, you make it even more valuable to them,” says Orman. It also encourages tenants to maintain a high FICO credit score, so landlords have confidence that they will be paid.

Yaseen Shah is a writer at Yahoo Finance. Follow him on Twitter @yaseennshah22

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The 5 Best Apps Every Real Estate Agent Needs https://californiasunsetteam.com/the-5-best-apps-every-real-estate-agent-needs/ Sun, 19 Jun 2022 14:10:00 +0000 https://californiasunsetteam.com/the-5-best-apps-every-real-estate-agent-needs/ Real estate technology will inevitably change the way you run your business. Times have changed, and so have the real estate technology tools agents use to communicate with potential clients, generate leads, and keep their business afloat. Whether you’re an experienced agent or just starting out, there are apps that can make your life as […]]]>

Real estate technology will inevitably change the way you run your business. Times have changed, and so have the real estate technology tools agents use to communicate with potential clients, generate leads, and keep their business afloat. Whether you’re an experienced agent or just starting out, there are apps that can make your life as a real estate agent easier.

We’ve scoured the app stores for the best real estate tech tools and identified the ones we think every real estate agent should have in their back pocket.

Types of real estate technology

Technology is playing a bigger role in the real estate industry. Tools like mobile CRMs, home staging apps, social media sites, and even real estate listing websites are becoming more commonplace for real estate agents today. The Real Estate Innovations Overview predicts that beyond 2020, the generation that grew up digitally will dominate consumer spending and work culture. Social media will help determine where and how people will want to live, work, and what space to choose for their dream smart home.

With the concept of agents and brokers using technological innovations as digital assets, the industry is now home to several types of real estate technologies.

· Mobile devices: According to real estate agent Mark Flavin, agents will need smartphones to respond to emails, texts, voicemails and instant messages as consumer behavior shifts towards a digital real estate market.

· Applications: Many apps are available for agents to use on their iPhones and Android devices. These apps can help them be more productive, provide accurate information to their customers in a timely manner, and manage their day-to-day activities.

· Cloud Services: Realtors can use their time more efficiently by using cloud-based services that allow them to share and collaborate on files, while eliminating the need to email documents or the hassle of fax machines in the office. real estate sector. .

· QR codes: A quick response code, or QR, is a two-dimensional barcode containing large amounts of data. When a smartphone camera is used to scan a QR code, the device will automatically link to content on the web. Tech Savvy Agent recommends real estate agents insert QR codes on lawn signs, business cards, direct mail and flyers to direct potential buyers or sellers to a website with more information or to their profiles of social media.

· Block chain: Blockchain also allows real estate professionals to create smart contracts – contracts verified and enforced by technology – by digitizing information and storing it in a database that is both public and encrypted.

· Real estate crowdfunding platforms: Crowdfunding platforms allow investors to pool their money to finance real estate projects. Investors can also become clients by using the platform to find a property that meets their needs.

Customer Relationship Management (CRM)

A real estate CRM (customer relationship management) system helps agents manage all communications with prospects and clients. Every year, CRM tools become more important for the daily work of agents, as well as for their success in the industry.

Benefits of CRM in the real estate market

Real estate CRM systems can capture and organize data ranging from business metrics to advertising. These programs help agents track their business, find properties, attract clients, and communicate with current and past clients.

Best CRM App for Real Estate Agents: Wise Agent

Wise Agent is a complete Customer Relationship Management (CRM) system designed specifically for real estate agents. It offers a wide range of features, including automated email and SMS reminders. The most impressive feature of the program is its 24/7/365 customer support, which includes live chat and email responses within minutes with a real person.

Advertising by e-mail

Real estate is about building relationships, and email marketing is the perfect way to nurture your customer base to come back to you for their next purchase, as well as to refer their network to you.

Benefits of Email Marketing in the Real Estate Market

Email marketing is the most widely used digital marketing platform, with over 4 billion users worldwide. It allows a real estate agent to reach a large number of people and communicate with them directly and simultaneously.

Best Email Marketing App for Real Estate Agents: GetResponse

GetResponse provides an all-in-one solution for agents, allowing them to manage long sales periods, from researching new properties to sales, training and customer service. With its easy-to-use tools, it offers unlimited creative possibilities – you can create smart automated campaigns and send content tailored to particular groups of subscribers.

Transaction Management

The real estate transaction management software offers a wide range of services, including an electronic signature platform with automatic filling, storage capabilities and integration with a CRM.

Advantages of managing transactions in the real estate market

As a real estate agent who relies on transaction management services, you have a competitive advantage over other agents who do not offer these services. When you use transaction management services, you can focus on what matters most: generating new leads and providing better support to your existing customers. This will help you build your reputation as an expert in real estate transactions, which could potentially lead to more client referrals.

Best Deal Management App for Real Estate Agents: DotLoop

Dotloop is the #1 transaction management software used by real estate agents, brokers, and teams. It allows users to consolidate form management, storage, and electronic signatures, among other features. Platform features include real-time visibility, branding tools, and cloud storage. Plus, it also has a mobile app for on-the-go accessibility.

Real estate websites

Real estate agents pursue various strategies to promote their business, including placing classified ads in local newspapers and magazines. However, with the internet becoming more and more popular as an advertising medium, it soon became clear that websites are essential for growth.

Benefits of Real Estate Websites

Real estate websites bring convenience to buyers and visibility to sellers. These sites allow homebuyers to view hundreds of property images, videos and features before scheduling a live viewing. For sellers, listing their home on these sites benefits them for the same reason: potential buyers can view the home online without having to travel.

Best Real Estate Website App for Realtors: Zillow

Founded in 2006 by two former Microsoft executives, Zillow offers a suite of tools for real estate professionals that make it the most robust real estate website available. Zillow provides leads to agents, lenders, and other home service providers. It also allows users to post their own ads, get updates on their searches, connect with agents and lenders, and receive push notifications of search criteria updates.

Lead management services

The most common type of technology used by real estate agents is lead management services. This helps real estate agents track their customer database more efficiently. It also helps them get qualified leads for their business more easily than before. For this particular service, real estate agents will have to pay a monthly or annual fee depending on what they can afford and what they need.

Benefits of lead management services in the real estate market

Lead management is an important real estate technology tool to ensure the real estate sales team is focusing their efforts on qualified leads. With the right lead management system in place, realtors can identify the leads most likely to be interested in their properties and able to buy them, so realtors can work with them rather than wasting time on unqualified prospects.

Best Lead Management Services App for Real Estate Agents: Market Leader

Due to its robust functionality, multiple sources of buyer and seller leads, and ease of use, Market Leader is a top choice for real estate lead generation companies. The market leader’s Guaranteed Exclusive Lead Program provides realtors with a monthly number of exclusive leads, which means no other agent can reach this consumer. In addition to the monthly leads program, real estate agents have the option of buying leads through Leads Direct, a pay-per-click advertising campaign targeting consumers looking for real estate listings. Both sources attract potential sellers when they try to appraise their home.

Final Thoughts

Real estate technology will inevitably change the real estate industry. Times have changed, and so have the technology tools real estate agents use to communicate with potential clients, generate leads, and keep their business afloat. It doesn’t matter if a real estate agent is experienced or just starting out, the apps we talked about above are a must-have that can make their life as a real estate agent easier.

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5 cities well positioned for continued price growth https://californiasunsetteam.com/5-cities-well-positioned-for-continued-price-growth/ Sat, 18 Jun 2022 09:05:29 +0000 https://californiasunsetteam.com/5-cities-well-positioned-for-continued-price-growth/ 1.Charlotte Charlotte is a rapidly growing city, with an average of 97 people a day moving into the city last year, said Anne Marie DeCatsye, CEO of Charlotte’s Canopy Realtor Association. According to DeCatsye, the city’s population has grown to 3 million in 2021, catapulting Charlotte to the 16th largest city in the United States. […]]]>

1.Charlotte

Charlotte is a rapidly growing city, with an average of 97 people a day moving into the city last year, said Anne Marie DeCatsye, CEO of Charlotte’s Canopy Realtor Association. According to DeCatsye, the city’s population has grown to 3 million in 2021, catapulting Charlotte to the 16th largest city in the United States.

Reflecting this massive growth, the value of real estate market sales reached around $24 billion last year. Median home prices were around $391,000, while average home prices were around $462,000. However, DeCatsye also pointed to Charlotte’s overall low cost of living, including “very friendly” businesses and individuals.


income tax

rates of 2.5% and 5.3%, respectively.

“Much to Raleigh’s dismay, I would say Charlotte is the economic engine of our state,” DeCatsye continued, pointing out that 9 of the Fortune 500 companies and 17 of the Fortune 1000 companies call the city home.

Charlotte’s many sports offerings — the Carolina Panthers, Charlotte Hornets, NASCAR and major league football — also make the city “a magnet for millennials,” DeCatsye said.

The city also has the 6th largest airport in the world and is strategically located near two ports in Wilmington, NC and Charleston, SC, making it a major logistics and distribution hub. Its central location benefits don’t end there, DeCatsye said, pointing to Charlotte’s all-season climate and proximity to mountains and beaches, making it a popular destination for top professionals and retirees.

Like most cities, sellers currently hold the edge in Charlotte’s housing market. With just 3,800 homes listed in a 16-county region and 24-day hover supply, the city’s inventory has fallen to its lowest level in 17 years. In May, inventories were down 12% year over year.

Buyers have little room to negotiate in a market like this, with sellers receiving an average of 102% of the asking price in May, raising affordability concerns, DeCatsye said. The public and private sectors will need to work together to solve this problem, but some builders are already requiring ownership purchases and the city has also introduced other plans for secondary suites.

Home sales have slowed in 2022 compared to the previous two years, which could allow Charlotte’s housing inventory to rebuild, she added. In May, new listings rose for the first time since November 2021, with inventory rising 20% ​​overall from April.

“I don’t think we’re going to see a drop in prices, but I do think we’ll potentially see some slowdown with buyers as they become more discerning and concerned about price, the economy and interest rates.” , added DeCatsye. . “And we will see more of an increase in purchases in our outlying suburban and rural areas as prices will likely continue to stabilize.”

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The Rutherford County real estate market is changing https://californiasunsetteam.com/the-rutherford-county-real-estate-market-is-changing/ Thu, 16 Jun 2022 01:29:52 +0000 https://californiasunsetteam.com/the-rutherford-county-real-estate-market-is-changing/ The real estate market continues to do well in Rutherford County and throughout Middle Tennessee, but buyers paying $30,000, $40,000 and even $75,000 above an asking price are slowly ending… It was David Estes of Parks Realty in Smyrna. Estes told WGNS NEWS that the average price of homes sold last May was over $200 […]]]>

The real estate market continues to do well in Rutherford County and throughout Middle Tennessee, but buyers paying $30,000, $40,000 and even $75,000 above an asking price are slowly ending…

A growing concern of landlords is the transformation of houses in their subdivision into rental properties. The concern is often linked to the fear that tenants do not maintain rental accommodation in the same way that a homeowner would maintain their own property. Estes confirmed that there has been a spike in investment companies buying homes…

WGNS reviewed recent real estate transactions and found a house in Murfreesboro that sold for $465,000 in 2017, sold for $1 million on June 15, 2022 (3,196 square feet). A Smyrna home that closed at $600,000 on Wednesday previously sold for $347,000 in 2017 (2,828 square feet). Another single-family home that sold for $585,000 this week was purchased in 2012 for $250,000 (2,320 square feet). A 900 square foot home that was listed at $259,000 sold for $290,000 on Tuesday. The same house was purchased 5 months ago for $215,000. $390,000 was the closing price for a Smyrna home on Tuesday, which had already been bought for $145,000 in 2015 (1,736 square feet). $422,000 was the closing price for another Murfreesboro home on Monday, originally listed at $449,000. This same house had already been sold for $272,000 in 2015 (2,542 square feet).

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Real estate: it’s complicated | Tacoma Daily Index https://californiasunsetteam.com/real-estate-its-complicated-tacoma-daily-index/ Tue, 14 Jun 2022 08:43:54 +0000 https://californiasunsetteam.com/real-estate-its-complicated-tacoma-daily-index/ By Morf Morford Tacoma Daily Index Real estate is many things; for some it’s a livelihood, for others it’s an investment and for others it’s literally where we live. For builders and contractors, real estate is a project. For those of us who inhabit our real estate, this is our biggest investment of our lives. […]]]>

By Morf Morford

Tacoma Daily Index

Real estate is many things; for some it’s a livelihood, for others it’s an investment and for others it’s literally where we live.

For builders and contractors, real estate is a project. For those of us who inhabit our real estate, this is our biggest investment of our lives.

A generation or two ago, a newly married couple could buy their first home – a small, affordable house.

Temporary housing, as in 2-3 year military deployments, presumed rental.

The condominium, a quasi-compromise between an apartment and a single-family house, appeared as a housing option in the early 1980s.

Building any type of housing takes time. A condominium or apartment project can take many years from planning to full occupancy. A single family home can take a year or two – if all goes well.

In other words, the economic dynamics of the economy as a whole – and certainly the builders, contractors and potential owners can (and often do) change dramatically between the time the plans are drawn and the time the occupants can move in.

Interest rates, costs (or availability) of materials, and the health, financial, or marital status of potential homeowners/purchasers can change, deflect, or even disrupt the best-laid building plans.

Many fortunes have been made in real estate.

But almost as many were lost.

The wheel keeps turning

There are four semi-reliable stages or seasons in real estate: recovery, expansion, hyper-supply and recession. As with the Earth seasons, there has never been a period of sustained expansion or hyper-supply without an eventual recession, followed by recovery. Followed by another cycle of boom, hyper-supply and bust.

Refining where one phase ends and another begins is, to say the least, the challenge.

Recovery

Identifying the recovery phase of the cycle, for example, can be tricky, as most of the nation and economy will still feel the effects of a recession.

At the start of a recovery, it’s a great time to pounce on below-market properties that are in various states of financial or physical distress.

A good policy at the start of a recovery is to wait out the rest of the recovery period by adding value to these properties so that they are ready to sell or rent as the economy gains a foothold and proceeds to the next phase.

Expansion

Expansion occurs when the economy as a whole improves, job growth is strong, and there is increased demand for space and housing.

Construction projects (and construction cranes) seem to be everywhere. Materials, skilled labor and goods are in short supply. Contractors are reserved and literally cannot build housing fast enough.

Which leads to the next phase…

Hyper-supply

As with any other hot product or trend, investors and developers go wild during the boom phase to ensure that supply meets a growing – seemingly endless – demand.

Inevitably, there will be a tipping point at which supply begins to exceed demand – either due to too much inventory in the market or due to a sudden change in the economy that restricts demand. Now is the time to buy and hold, if you can, so you will already have promising properties in stock when the recovery continues.

Recession

But until the recovery returns, supply far outstrips demand, construction projects fail and remain unfinished, and rental property owners suffer from high vacancy rates. Not only is rent growth not present, but some landlords are forced to offer reduced rental rates to attract (or keep) tenants who are also suffering from the economic downturn.

If you have the resources, a recession offers the best opportunity to buy distressed properties at a great price.

Seasons

The average real estate cycle lasts about 18 years.

That’s about four years per phase – but some phases last (or at least seem to last) much longer.

And, there is nothing predictable about the “average.”

In general though, there are solid strategies for making the most of these situations.

In summary;

In times of recovery: focus on rehabilitation, buy and hold, and if possible, multi-family investments.

In times of expansion: buy and keep, consider multi-family and commercial acquisitions

In times of hyper-supply: buy and hold. The demand will eventually come back.

And in times of recession: private and hard money lending, investing in foreclosures and bank-owned homes.

Fortuitous factors

As some of us learn, the real estate market is about more than materials, labor, land costs and interest rates. Demographics underpin markets of all kinds – perhaps especially real estate.

A major generation rocks all the markets it touches. High demand for “starter homes” inevitably leads to downsizing, which inevitably leads to these homes being put back on the market – perhaps all, or most, at once.

Another semi-unpredictable factor is the government.

The government will occasionally intervene with policies to help stimulate a market that is particularly sluggish or in a prolonged recession.

Policymakers have the ability to implement tax deductions, subsidies, tax credits, and various homeownership programs to entice consumers to purchase real estate.

And, as we all know in the 2020s, pandemics can upend everything we thought we knew about every market.

Perhaps real estate above all.

Going through these semi-predictable phases can make or break our net worth.

As always, preparation for what’s to come is the best defense.

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Florida owner expected greater value now https://californiasunsetteam.com/florida-owner-expected-greater-value-now/ Sun, 12 Jun 2022 15:51:30 +0000 https://californiasunsetteam.com/florida-owner-expected-greater-value-now/ Ilyce Glink and Samuel J. Tamkin Q: I can’t wait to see so many people say, “Wow, your home has gone up in value so much,” without knowing the facts. Fifteen years ago, in 2007, I bought my house in Florida from a trust because the owners were both deceased. I bid $700,000 on the […]]]>

Ilyce Glink and Samuel J. Tamkin

Q: I can’t wait to see so many people say, “Wow, your home has gone up in value so much,” without knowing the facts.

Fifteen years ago, in 2007, I bought my house in Florida from a trust because the owners were both deceased. I bid $700,000 on the property, which was listed at $800,000, so I don’t feel like I overpaid. The trust accepted my offer.

For many, many years, the property was worth less than $500,000. Earlier this year, it was the first time in over a decade that Zillow’s estimate exceeded what I paid in 2007.

Today, Zillow’s estimate for the property is around $925,000. I assumed I would get a 3% annual increase in value, on average. So over 15 years, my house should be worth over a million dollars. (In fact, I calculated it should be worth $1.09 million.)

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6666 Ranch Making Farms and Ranches Popular in the Real Estate Market | KLBK | KAMC https://californiasunsetteam.com/6666-ranch-making-farms-and-ranches-popular-in-the-real-estate-market-klbk-kamc/ Fri, 10 Jun 2022 23:34:04 +0000 https://californiasunsetteam.com/6666-ranch-making-farms-and-ranches-popular-in-the-real-estate-market-klbk-kamc/ GUTHRIE, Texas — The famous ranch 6666 was sold earlier this year for its rugged history and beautiful scenery. Since then, there has been more appreciation for land in West Texas, making ranches like this a hot pick in the real estate market. Creator of the hit television series “Yellowstone”, actor and screenwriter Taylor Sheridan […]]]>

GUTHRIE, Texas — The famous ranch 6666 was sold earlier this year for its rugged history and beautiful scenery. Since then, there has been more appreciation for land in West Texas, making ranches like this a hot pick in the real estate market.

Creator of the hit television series “Yellowstone”, actor and screenwriter Taylor Sheridan is the face of a group of investors who have purchased the 260,000+ acre property.

“Taylor has a genuine love for the land and history. Ultimately, he wants to own the ranches for the long term. It’s not just a short-term investment for him,” said Sam Middleton, the ranch broker who sold 6666 Ranch. “If anyone can make it work, I think they can.”

He added that it is because of the “Yellowstone” series that marketing has exploded and is booming right now.

“Ranches have always been a great place to park money due to appreciation. Ranches don’t generate a lot of revenue from an operational perspective,” Middleton explained.

Middleton was trusted by Anne Marion, the granddaughter of founder Samuel Burk Burnett, to sell the ranch. She passed away in February 2020, and it was her wish to sell the three ranches that make up 6666 together.

“There were so many people who couldn’t handle something of this magnitude,” Middleton said. “I had a lot of buyers for individual ranches, but I wanted to honor his wishes and try to find a buyer for all three ranches and Taylor wanted to do that. He wanted to keep it all together.

He said he knew Anne would be happy for the ranches to be sold together.

The new “Yellowstone” spin-off is called “6666”. It will be presented at the end of this year on November 13.

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Plant City isn’t immune to Florida’s booming housing market https://californiasunsetteam.com/plant-city-isnt-immune-to-floridas-booming-housing-market/ Thu, 09 Jun 2022 09:03:04 +0000 https://californiasunsetteam.com/plant-city-isnt-immune-to-floridas-booming-housing-market/ When Erica Perkins started house hunting last year, Plant City wasn’t exactly on her list of neighborhoods. Perkins was interested in the Seminole Heights area, where her husband is from. When they heard about home prices in Tampa, the family of two decided to broaden their horizons. “Honestly, we moved here because of the price,” […]]]>

When Erica Perkins started house hunting last year, Plant City wasn’t exactly on her list of neighborhoods. Perkins was interested in the Seminole Heights area, where her husband is from. When they heard about home prices in Tampa, the family of two decided to broaden their horizons.

“Honestly, we moved here because of the price,” Perkins said. “We were house hunting and couldn’t find anything decently sized and affordable in Tampa.”

The family of two opened their search in the I-4 corridor and examined homes in Wesley Chapel, Brandon and eventually Plant City. They closed a $350,000 four-bedroom, two-bathroom home near the Plant City Hillsborough Community College campus in November.

Their story is typical.

Polk County Growth:County officials come face to face with Polk’s growing pains

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Commercial property sales slow as rising interest rates send transactions plummeting https://californiasunsetteam.com/commercial-property-sales-slow-as-rising-interest-rates-send-transactions-plummeting/ Tue, 07 Jun 2022 09:33:00 +0000 https://californiasunsetteam.com/commercial-property-sales-slow-as-rising-interest-rates-send-transactions-plummeting/ Commercial real estate has been showing the first signs of cooling for more than a year, disturbed by the rise in interest rates which is already causing some transactions to fail. Property sales were $39.4 billion in April, down 16% from the same month a year ago, according to MSCI Real Assets. The decline follows […]]]>

Commercial real estate has been showing the first signs of cooling for more than a year, disturbed by the rise in interest rates which is already causing some transactions to fail.

Property sales were $39.4 billion in April, down 16% from the same month a year ago, according to MSCI Real Assets. The decline follows 13 consecutive months of increases.

Hotels, office buildings, retirement homes and industrial properties saw sharp declines in sales. Sales of other property types, such as retail and apartments, rose in April, but analysts and brokers said activity could also slow in those sectors as rising interest rates interest prevents some investors from making competitive offers.

In March, total commercial property sales were up 57% from the same month a year earlier.

“To move it from a very rapid pace of growth the previous month, the speed of this transition is shocking,” said Jim Costello, chief economist at MSCI Real Assets. A drop in sales can be an early indicator of stress in property markets as prices are generally slower to change, he added.

After an initial pandemic alert in which sales of most types of commercial real estate declined, commercial real estate sales began to rebound in late 2020. Low interest rates and strong demand, particularly from multi-family and industrial tenants, have fueled property sales throughout 2021 and into this year. .

Now, with dramatically higher interest rates – the yield on 10-year Treasury bills, a common benchmark for commercial mortgages, has nearly doubled this year – real estate investors who rely on large amounts of debts were among the first to fall off the market, brokers and investors said.

In some cases, investors find that as the cost of borrowing increases, their short-term rate of return is lower than the interest rate on their mortgage. Lenders, in turn, are now tightening their standards for more speculative transactions, brokers said.

In some sectors, such as small industrial and commercial buildings, potential buyers who wrote letters of intent to buy properties weeks ago are now abandoning their offers because the cost of borrowing has risen so quickly, a said Joshua Campbell, senior vice president at Stan Johnson Co., a commercial real estate brokerage firm.

“That wasn’t happening two or three years ago,” Mr Campbell said.

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Other investors are moving away from agreements already reached. Innovo Property Group recently walked away from a deal to buy a Midtown Manhattan office tower for $855 million after soaring interest rates made it harder to find a mortgage, a person says close to the file. The flip-flop meant the investor lost his $35 million deposit, according to another person involved in the deal.

Soaring interest rates in recent weeks have left many investors with a choice between losing their deposit or paying far more than expected on their mortgage, said Jay Neveloff, partner at law firm Kramer Levin Naftalis & Frankel LLP.

Most have moved forward with planned purchases, he said, but other investors are now more cautious about signing new deals. This will inevitably drive prices down. “Pricing cannot be blind to changes in financial markets,” Neveloff said.

As the pool of buyers shrinks and interest rates rise, sellers are increasingly likely to make concessions to secure deals, said Henry Stimler, executive in the multifamily capital markets division of Newmark real estate company.

His firm recently negotiated the sale and financing of a $457.5 million multi-family portfolio focused in the Carolinas, where rental growth has been strong over the past year.

“It’s now turning into a buyer’s market,” Mr. Stimler said.

Write to Will Parker at will.parker@wsj.com and Konrad Putzier at konrad.putzier@wsj.com

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