Analysts will try to measure the impact feasible changes in regulations might have on housing, the effect of a possible first-time buyer program, and any number of other situations. The housing market, however, will remain strong for four reasons:
-
Demand Is Strong among Millennials - The nation’s largest generation began entering the housing market last year as they reached the age to marry and have children – two key drivers of homeownership as reported
-
Mortgage Rates Are Historically Low - All-time low interest rates are driving demand across all generations. In addition, Freddie Mac just forecasted mortgage rates to remain low in 2021
-
Prices Continue to Appreciate - The continued lack of supply with the surge in demand has experts forecasting strong price appreciation over the next twelve months.
-
History Says So - Though it’s true that the market slows slightly in November when it’s a Presidential election year, history shows the pace returns quickly.
BOTTOM LINE: There’s no doubt this is one of the most contentious presidential elections in our nation’s history. The outcome will have a major impact on many sectors of the economy. However the housing market, which has basically withstood every pandemic-related challenge to this point will continue its strong momentum in the months to come.
|
|
While many people are still squeamish about crowds and looking to avoid hotels, resorts and airplanes, but still in need of a getaway... what the data is showing, and what I am seeing at my own properties, is a majority of travelers favor a simple, safe and drivable vacation vs the cross country flights. For proof, look no further than Airbnb’s recent record-setting bookings report.
For short-term rental hosts like myself, and property managers to best position themselves to thrive amid this ever-changing backdrop, they must respond quickly to the changing market conditions and proactively address these five particular areas:
-
Cleanliness: ”Safe and clean” are top of mind for travelers venturing out into the world, so hosts need to take every precaution
-
Flexibility: In order to serve changing guest needs hosts need to be open to Mid-Term, and long-term occupants as well as their traditional short-term and weekend worrier ones
-
Marketing: A new landscape comes new opportunities. This is an active endeavor to make guests aware of new safe/clean precautions, shifting your advertising, and pricing towards a potentially new or changing target market.
-
Compliance: The ongoing pandemic has prompted state and local governments to look for new revenues. Short-term rentals is one in the crosshairs of taxing authorities. Stay current on licenses, certifications, fees and lodging taxes it's essential to ensure business
-
Automation: Technology is playing a key role for hosts and guests during COVID-19, as more properties are upgraded to “smart rentals.” Short-term hosts have been implementing no-touch technologies and streamlined workflows for years, but now the digital transformation in the space has shifted from a luxury to a necessity.
|
|
2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said. And he’s right: most of us would have expected the housing market to suffer from circumstances like a once-in-a-hundred-years pandemic and historic inventory shortages.
|
Inventory is at a record low across the country. NAR reports there are fewer homes on the market today than since 1982. Currently, the total housing inventory is about 1.47 million units, which is a decline of 19.2% from one year ago.
What It Means for Homeowners: These higher home prices show that buyers are willing to spend more on a home right now than they did last year. Representing clients on both sides I can 100% say, if there ever were a time to list for top dollar—and expect to receive asking price or above quickly, It's right now.
What It Means for Homebuyers: Buyers will more than likely find themselves in a bidding war. Time is of the essence in a seller’s market, homes are going under contract in the first weekend in Central Texas, so you’ll need to get your financing in order and be preapproved for a loan before you begin your home search. Be ready to get creative with your offer, don't automatically shy away from appraisal waivers if you can afford it and you want the property, because that maybe what it takes.
|
BUYERS BENEFIT FROM LOW MORTGAGE RATES AND A BIGGER PLAYING FIELD
Thanks to the pandemic shifting the focus of jobs and work, they are free to consider what they need from a home rather than the length of commute to their workplace. Coupled with these record low rates 2.81% in mid October, buyers are afforded the opportunity to buy nearly $32,000 (on average) more home than they could one year ago while keeping their monthly payment the same.
What It Means for Homeowners: Record-low mortgage rates offer you the opportunity to REFI, lower your monthly payment—or even take out some equity. with those additional funds, you could even choose to invest in a second vacation home, a Short-term or Long-Term Rental, and put some continuous cash flow into your pocket at the same time. I'm happy to show you the models I'm using to do all of those things for myself right now.
What It Means for Homebuyers:
The time is now to determine how much home you can comfortably afford and make a plan to find it. Home prices and Interest rates are both going to rise. I can set up a search for you to find homes that best meet your new needs, and help you effectively compete in this Central Texas market. For the Quick Read PDF Click Here
|
|
THIS WEEK'S NEW MARKET ACTIVITY
|
|
|
Thank you for you for your time today!
Stay safe and let me know what in the world I can do for you!
|
|
|
|
|
|
|
