Paula’s Newsletter Archive
Here are a few samples of past newsletters.
3.02.16 – Industry expert Jordan Wirsz just published a piece on Inman.com that we found very interesting. He says that we are likely to see some ebbs and flows in the real estate market for the remainder of 2016 and 2017, and we may even experience a mild recession, but investors can nevertheless expect significant upside for their real estate investments.
He quotes Sir John Templeton, who said,”Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”
His study of real estate cycles suggests the next peak will be reached in approximately 2022. Between now and then we can expect periodic gains and losses. He reminds us that a mild recession and a moderate slowing in housing sales and prices will be a very healthy thing for the market overall. It will present opportunities for forward looking homebuyers.
2.17.16 – Stock market volatility and economic concerns abroad will likely result in a choppy real estate market, according to industry consultant Carole Rodoni, who spoke with Hill & Co. agents last week. While San Francisco is always the last in and the first out of any real estate downturn, Carole seems to sense that the market is shifting a bit. It seems it’s no longer an indisputable sellers market, particularly when it comes to higher priced homes.
This isn’t a bad thing. We’ve been hoping for a more balanced market for a long time. According to Carole, sellers need to be more realistic about their asking prices, and understand that they don’t push appreciation, buyers do.
At the same time, buyers need to take advantage of this potential purchase opportunity while it lasts. Some may be waiting to see what’s next. Buyers who employed this same strategy not so long ago were shut out when home prices rebounded in a big way. Would-be buyers were simply unable to catch up to the pace of appreciation.
1.11.17 – Hope you had a wonderful holiday!
Industry insider Brian Buffini just posted his predictions for 2016. In many ways, it’s more of the same, as buyers across the country are more agile and better equipped with information than ever before.
Most buyers start their search online and continue to use the Internet throughout the process. In fact, 43 percent of all buyers looked for properties on line before even contacting an agent or looking for information about the homebuying process itself. However, despite having incredible access to information, buyers and sellers alike continue to recognize the importance of agents, and rely on them for guidance and assistance when buying and selling properties.
According to Buffini, 88 percent of buyers would use their agent again or refer him or her to others.
11.18.15 – Some industry analysts have expressed concern about the fact that millennials in the U.S. have not been purchasing homes to this point. However, there may be more to it than meets the eye.
In a recent report, Mortgage Daily News points out that the largest single age group of younger Americans is 23, followed by those 22 and 24, with each group containing around 4.5 million people. Since the prime age for buying a home is 31, we can expect that in six to eight years this demographic bulge will increase home sales.
In the meantime, millennials have started to leave home. Household formations doubled in 2015 over 2014 (from 700,000 to 1.6 million) in step with an improving economy and more jobs. Long term, even though millennials do have to deal with high student debt, surveys suggest that they share their parents’ desire for homeownership.