Real Estate Digest – June 2019

Real Estate Industry Lacks Strategy
for Climate Change, Study Finds

1The real estate industry has been very slow in adopting new standards to deal with the growing effects of climate change, according to a new study published by the Urban Land Institute, a nonprofit research institute and Heitman, a real estate investment firm.
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Weekly Mortgage Applications at Highest Level in 9 Years

2 Rising rates are impacting homeowners who want to refinance. However, homebuyers are not pulling away from the market.

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Rents Increase as Airbnb Listings Increase

3A new study done by researchers at UCLA and the Marshall School of Business, University of Southern California, uncovered a correlation between Airbnb and city rent increases. The study aimed to apply the findings of previous research on rental prices in Boston, Mass., in determining Airbnb’s impact on U.S. rental markets overall. The Boston study revealed that as the number of active Airbnb listings in the city grew, rents increased.
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Millennials, Gen Xers Purchasing More Multi-generational Homes

4According to the National Association of Realtors’ 2019 Home Buyer and Seller Generational Trends, the number of Gen Xers and millennials purchasing multi-generational homes is on the rise. One in six Gen Xers purchased a multi-generational home with 52 percent reporting they did so because their adult children have either never left home or moved back. Older millennials seem to have more in common with Gen Xers and younger boomers with 9 percent having bought a multi-generational home to take care of parents or spend more time with their parents.
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Largest Metros Where Residents Pay Highest, Least Property Taxes

5A new study from LendingTree reveals the impact of the new tax law on U.S. homeowners. The Tax Cuts and Jobs Act, which took effect in 2018, changed how much homeowners pay in property taxes. In fact, it has dramatically shifted the amounts homeowners in the country’s largest metro areas pay in comparison to smaller areas.
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Homeowners Underestimate Remodeling Costs

6Homeowners are not realistic when it comes to estimating the true costs of home improvement projects says a new study from Discover Home Equity Loans.
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Craft Breweries Boost Local Property Values

3A new study from the University of Toledo found local craft breweries boost nearby property values. In Charlotte, N.C., alone, 21 craft breweries opened between March 2009 and October 2016, a surprising find which prompted the Toledo-based researchers to investigate how the new breweries impacted the area.
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Going Green Increases Home Prices

4A recent Zillow analysis found it pays to go green if you are trying to sell your home. Homes that feature solar energy systems sold for 4.1 percent more on average than their non-green counterparts in 2018, according to the study.
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Builder Confidence Rises, Affordability Remains a Concern

4The nation’s homebuilders enjoyed strong demand this spring. However, they continue to see potential buyers being hindered by high home prices.
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5 Tips for Selling New Construction

4Most experienced real estate agents will say selling a new construction project is significantly different from selling an existing property. In many cases, selling new construction is quite challenging and requires both perseverance and patience from the real estate agent. Read on for details.

Real Estate Digest – May 2019

Bombshell Lawsuit Alleges Top Real Estate Companies Violated Sherman Antitrust Act

1A recently filed class-action lawsuit accuses major U.S. real estate firms of violating antitrust laws. The suit (Moerhl v. National Association of Realtors (NAR)) was filed in federal district court in Chicago and makes the claim that the defendants in the suit colluded to require home sellers to pay inflated amounts to the brokers representing the buyers of their homes.
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Breakups Force Millennials to Return Home, Says Homes.com Study

2 Student loan debt and rising housing costs have long been considered the main reasons millennials move back home after moving out on their own. A new Home.com survey found another reason for the rise in boomerang kids: breakups. The survey of 500 millennials found 33 percent of 26 to 30-year olds moved back home following a divorce or breakup. By comparison, 37 percent of 31- to 35-year-olds and 24 percent of 36- to 40-year-olds decided to move back.
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High-Priced Condos Sell at a Loss More Often than Non-Luxury Units

3High prices do not guarantee profits when it comes to luxury real estate, according to a new study by StreetEasy. Researchers analyzed New York Department of Finance records from 2014 to 2018 and found that 7.7 percent of the 16,000 homes sold in New York City during this period sold at a loss.
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Redfin Study finds Homes with Pools Sell for More Money

4Having a pool could mean higher home value for homeowners in some regions of the country, says a new study from Redfin. Overall, the study found that in warmer regions a pool can actually add thousands to a home’s value. However, the amount of added value was not the same for every housing market.
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Home Sellers Not Comfortable with Real Estate Agents, Study Says

5Homeowners ready to sell their homes are not always comfortable working with real estate agents, a new study by Clever Real Estate finds.
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LendingTree Study Examines How Housing Prices Have Recovered Since 2009

6Home prices and unemployment rates have recovered significantly since the financial crisis, according to a new analysis done by LendingTree, the country’s largest online loan marketplace. The study examined the 50 largest metropolitan areas in the country to determine where housing prices have recovered the most. The study also examined how income and unemployment rates have changed since 2009.
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Rising Housing Costs Causing Some Married Couples to Take on Roommates

3It is becoming more common for married homeowners and renters to live with roommates, says a new Trulia study. Worsening housing affordability is the main cause of non-traditional living arrangements for married couples. While couples generally move in together to eliminate the need for roommates, more married couples now live with a roommate in order to share housing expenses.
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New Study Analyzes Salary Needed to Afford Housing in Top U.S. Metros

A new hsh.com study uncovered the disparities in home affordability across the United States. The study explored the salaries potential homeowners need to earn to afford the principal, interest, taxes, and insurance payments for a median-priced home in the top most populous metro areas of the country.
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Rising Seas Eliminate $15.8 Billion in East Coast Home Values

4A new First Street Foundation study found rising sea levels resulted in losses of $15.8 billion in property values between 2005 and 2017 among 15 East Coast states, Alabama, and Mississippi.
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How to Negotiate Like the Pros: 3 Expert Tips to Help You Close Real Estate Deals

4As a real estate agent, there’s nothing worse than seeing a deal go up in flames after you’ve already invested your time and energy into it. It’s even tougher when you know you could have closed the deal if only one of the parties had been just a bit more flexible. Instead, both sides refused to budge. The buyer wouldn’t raise their offer and the seller wasn’t willing to drop theirs.
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Real Estate Digest – April 2019

How Will Luxury Real Estate Perform in 2019?

1As real estate markets across the country continue to soften, analysts are looking ahead to try to determine how the luxury market will pan out for the remainder of 2019. This is important because whatever occurs at the very top of the real estate market eventually impacts everyone and can provide early warning signs of a coming downturn.
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Study Says Power Lines Affect Property Values

2 A new study found a home’s proximity to power lines has a significant impact on its value. The study, done by assistant professors Chris Mothorpe and David Wyman, was published in the Journal of Real Estate Research by College of Charleston. The researchers found that vacant lots located adjacent to high-voltage transmission lines sell for 45 percent less than equivalent lots not located near transmission lines. Lots not adjacent to transmission lines but located within 1000 feet of the lines sold at an 18 percent discount. Read on for details.

Rich Are Fastest Growing Segment of Renters

3High net worth individuals are increasingly renting, according to the findings of several studies. Renters who earned $150,000 or more per year have become the fastest-growing group of renters, according to a recent study done by RentCafe.com, an apartment listing site. Researchers analyzed pricing and demographic data from the U.S. Census and rental listing sites Redfin and PropertyShark and apartment real estate research firm Yardi Matrix.
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Some Homeowners Decline Refinancing for Lack of Trust in Banks

4Following the 2008 financial crisis, financial institutions and policymakers came up with strategies to help troubled homeowners. However, a new study uncovered that millions of Americans did not take advantage of these options due to a mistrust of banks. American homeowners who received the offer but decided against refinancing missed an opportunity to save an average of $9,000, perpetuating the housing distress that soon emerged from the crisis.
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Living Near a Highway Can Boost Home Values

5When it comes to home values, proximity to a major highway is reflected in home prices, according to a Dutch study published in the journal Transportation in 2016. The researchers concluded that highway construction has a “generally positive” effect on area housing prices. However, this effect does not extend to all homes and the exact location of the home matters.
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One in Four Homeowners Plans to Purchase a Smart Lock in 2019, Study Says

6Smart home security devices are growing in popularity among American homeowners thanks to their increased affordability, accessibility and convenience. A new study from Parks Associates found smart locks could become the next major security purchase for American households. Nearly one in four homes in the United States plan to buy a smart door lock within the next year, according to the study’s findings.
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Rate of Homes Hitting the Market Near 10-Year High

3RE/MAX real estate agents report there are now more homes for sale than in the past decade, according to the latest housing report. RE/MAX, a major global real estate franchise, released the data as a part of its monthly National Housing Report.
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Real Estate Websites Want to Buy Homes Directly from Homeowners

4Direct home buying companies are vying to become a major force in the real estate industry. Offering the promise of a quick and easy sale for home owners and backed by venture capital funds, these companies intend to capitalize on the notion that many consumers view the home buying and selling processes as difficult.
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Seniors Impacting Housing Shortage, Study Finds

4Millions of senior citizens are staying in their homes longer, making it more difficult for younger Americans to become homeowners. An analysis done by economists at Freddie Mac found 1.1 million homes are “off the market” because of owners who were born between 1931 and 1941. Another 300,000 homes are currently occupied by those born between the years 1942 and 1947.
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4 Myths Real Estate Agents Believe About Customer Loyalty

4Building trust and establishing long-term relationships with clients are two keys to success in real estate. However, this is where most agents make mistakes. Client loyalty isn’t built on over-the-top gestures or gifts, which is what some agents think.
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Real Estate Digest – March 2019

10 Best States for Real Estate Investors

1As housing prices increase, the potential for great returns for investors has grown. In some states, housing prices are reaching levels that have not been seen since the financial crisis.
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Government Shutdown Impeded Some Real Estate Activity, Says NAR

2 The partial federal government shutdown had a minor impact on the housing market, according to a new study done by the National Association of Realtors. NAR surveyed its members and found that 11 percent reported an impact on current clients while an additional 11 percent reported that the shutdown impacted potential clients. Notably, the study of 2,211 members also found that the majority of agents (75 percent) felt that the government shutdown had no impact.
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Falling Mortgages Will Stabilize Builder Confidence Says NAHB

3Builder confidence for newly constructed single-family homes rose in January on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index saw a two point increase to 58, along with all other HMI indices which also saw gains. The index measuring current sales conditions climbed by two points to 63 and the component tracking expectations for the next six months rose by three points to 64.
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Credit Reporting Changes for 2019

4After the 2008 financial crisis, many lenders tightened their lending standards, making it difficult for some consumers to get financing. As a result, the credit-reporting industry has been changing the way it does business due to regulatory pressure and requests from banks and other lenders that want to make more loans available to more people, not only those deemed the most credit-worthy.
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Homebuyers, Homesellers Lack Understanding of Real Estate Agent’s Role

5The majority of homebuyers and sellers believe that real estate agents work exclusively on their behalf. However, a new report from the Consumer Federation of America (CFA) has found this is not always true.
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Millennials Are Not Buying Homes Due to Student Loan Debt

6Student loan debt is having a major impact on first-time homebuyers. A new Fed study found student loan debt has contributed to the decline in home ownership over the past decade.
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New Career Advancement Network Launched for Real Estate, Mortgage Professionals

3Professionals working in real estate and mortgage lending need new resources to help them learn how to thrive in light of recent industry changes, according to industry leaders who have decided to launch the Industry Syndicate, a media network and community for professionals who work in mortgage lending, real estate, appraising, home building and other related fields.
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The U.S. Real Estate Markets Where It Is Cheaper to Rent Than Buy

4Buying a home is considered to be a rite of passage for many Americans. However, owning is not always the best decision in every market. A new study from ATTOM Data Solutions found that renting a home is more affordable than buying in 59 percent of U.S. housing markets.
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Zillow Offers to Expand into Five New Cities Later This Year

4Zillow Offers will be available soon in five new cities: Miami, Fla., Minneapolis, Minn., Nashville, Tenn., Orlando, Fla., and Portland, Ore. Zillow expects the service to operate in these new markets by fall of this year.
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How to Stay Cool When Your Real Estate Business Heats Up

4Real estate agents are often multi-tasking so much in an effort to move their businesses forward that they sometimes become confused and overwhelmed, and can’t keep up when things really start to take off. Burnout is common and can easily happen if you don’t have a plan to deal with your emotions when you start to achieve your business goals.
Read on for details.