Buying a home for the first time is a very important step in a person’s life. Deciding what city your home will be in is a huge part of that decision-making process. There are plenty of good places that first-time homebuyers can choose to live, but there are also some cities that are not such good options.
Bankrate studies of 50 metropolitan areas show the best places in America for people buying their homes for the first time. The locations were decided based on wellness, affordability, safety, employment, and the tightness of the market. Out of those 50 metro areas, Los Angeles, California, was last on this list because its average income for homeowners was so low. Another problem with homes in Los Angeles is that the price is often very high. The number one city on this list is Pittsburgh, Pennsylvania, because even though its average income is about the same as Los Angeles, the housing market in Pittsburgh is much tighter.
According to those studies from Bankrate, the top ten cities that rank as the worst places for first-time homebuyers to live are San Diego for the tenth number place, Orlando, Florida, San-Francisco, Houston, Denver, San Jose, California, Riverside, California, Seattle, Las Vegas, and in the number one spot in Los Angeles. One of the most noticeable things about this list of cities that are the worst places to purchase a home is that so many of these cities are in California. Another noticeable thing is that each city in California ranks at the bottom as far as affordability goes.
Despite what this list shows, some of those cities that rank at the top of the worst may still have some good qualities. Los Angeles has a high ranking for wellness and culture despite its low ranking for jobs and affordability, so it is possible that some first-time homebuyers could find those advantages to be more appealing. Several of the other cities on this list may have similar advantages that make them more appealing as well. It is very important for first-time homebuyers to do their own research to choose a home in a location that really feels right to them.
Whether you’re an investor or a buyer/seller, knowing what moves the real estate market is key to maximizing gains and getting the best deal possible. One of the key factors that impact real estate value is seasonal changes. Buying or selling propery in wintertime can be a difference of night and day when trying to sell the same unit during summertime. Here are three ways on how cooler weather can affect the real estate market.
As with any financial market, the real estate market is dictated by supply and demand. There are seasons of the year wherein buyers outnumber sellers, during which time it becomes more challenging to purchase a property within your desired budget due to the bigger amount of bids coming in. Summer is typically the busiest season of the year, with people buying more aggressively than any other time of the year. Come wintertime, the demand subsides and so does the market prices. This makes it a great time to buy real estate but not so much to sell one.
Different Staging Process
Staging a home that you want to sell during wintertime will involve slightly different design elements than when you’re staging a home during summertime. For starters, you’ll want to crank the furnace or boiler up to keep the temperature indoors nice and cozy for home buyers who come in to check the property. Boosting curb appeal during wintertime can also be more challenging since there is less natural light in the day and less vibrant colors surrounding your property. You can boost your property’s curb appeal by adding tall grass and purple-colored cabbage plants for some background contrast.
Lower Realtor Costs
With a lower demand in housing, you have more wiggle room both as a buyer and a seller. Realtor costs, for instance, can be negotiated to reflect the seasonal freeze in demand for their services. Contractors may also offer lower pricing for their services to get more business in a time when demand for work is seasonally lower.
Regardless if you’re a buyer or a seller, patience is perhaps the most important value to succeed, especially in a market like real estate where seasonal changes impact valuation. Simply being patient and timing your purchase or sale can net you savings or profits of 5-10 percent easily.
Climate change on earth is very real as temperatures continue to rise higher to create extreme weather conditions. Therefore, it is necessary for real estate owners to ensure they have the right measures set in place to avoid any negative impact from upcoming extreme weather situations. Workers in the insurance industry are keeping a close watch on the changes in weather because certain weather conditions can increase the premiums on insurance plans or change the rules in different regions. There are some risks of climate change that cannot be insured, and in those cases the reinsurer’s approach is very important to primary insurers. Reinsurers will raise the rates for primary insurers as severe weather creates more loss, and then the primary insurers will raise the costs for those who buy insurance like tenants and property owners.
Climate change and severe weather has made it so that real estate investors must really understand the importance of surviving the risks of bad weather by creating a strategy that will decrease losses. Some companies have chosen holistic methods to protect themselves such as climate change related shareholder activism and the possibility of huge lawsuits. There could be less renters in demand for several reasons related to weather including bad storms and floods, heatwaves, wildfires, drought, and water stress. It is also possible for damage to nearby buildings and homes to make it so that tenants cannot access their own building and when this happens, real estate owners must deal with the risk of climate change and severe weather affecting their income even when their own building is protected from extreme weather issues.
Since climate change can pose such huge risks to financial systems all over the world the Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board. The TCFD makes sure climate-related financial information and risks are reported faster and with more information. These bad weather risks are just like any other financial risk and can be disclosed in a company’s profit and loss account. As long as real estate owners and managers understand that they cannot ignore climate risk and instead decide to assess the risk and opportunities with climate data, everyone in the real estate business will be able to build resilience from severe weather troubles and create much better outcomes.
Each year, millions of homes are bought and sold in the United States, and investors review data released for the housing market value. If you are curious about the housing market or considering investment, here are phrases that you should understand about housing market value.
Median Sale Price
When you look at the median sale price for homes in the country, the data will show a dollar amount and a percentage of increase or decrease. The median price can be viewed as the average. In June 2021, the median sale price was just under $390,000, demonstrating an almost 24% increase compared to last year. Use the median sale price of homes to determine if the housing market is affordable for buyers and profitable for sellers.
Average 30-Year Fixed Mortgage Rates
Fixed mortgage rates reflect the cost of buying a home, typically shown as an interest rate. Higher fixed mortgage rates coincide with a downturn in purchases because people cannot afford the higher monthly payments. When the mortgage rates decline, you will see more people buying homes. In June of this year, the average rate for a 30-year fixed mortgage was 3%, compared to almost 5% in 2018 and 2019.
Median Days on Market
Median days on the market show you how fast properties sell once they are listed. This means that buyers have to act quickly to get the home they want and can afford, and sellers can expect to get out of their properties sooner or later. The average time that it took to sell a home in June 2021 was 14 days, indicating that it is a highly competitive market.
Months of Supply
Months of supply is based on the number of homes that are listed for sale compared to how many people are looking to purchase a home. As of June, there is a little more than one month of supply of homes on the market. This is significantly lower than past years. In 2019, there was a supply of homes for sale that would satisfy buyers for four to five months.
Sale-to-list price indicates how much the actual sales price was above or below the original listing price. In highly competitive markets, buyers may offer a price that is more than the list price to ensure that they get the home they want. The sale-to-list price is lower when there is little competition or the home’s actual value is below the asking price. In June of 2021, the average sales price was slightly more than the asking price.
Seasoned commercial real estate pros will tell you that achieving success in this dynamic field means keeping up with trends. Two other key factors often mentioned are learning to be opportunistic in spotting promising deals — and a proactive ability to spot potential losing situations.
Newbie commercial real estate entrepreneurs can obtain these traits through constant professional development. That means studying the field and tapping into resources that offer leading-edge information on what happening in real estate. The fresher the information the better.
Here, then, are some suburb commercial real estate informational and educational real estate resources that will keep you on top of what happening:
This multi-platform digital media provider is a producer of both news and a creator of live events. Owned by Wicks Group, a private equity firm, Bisnow covers 27 top metropolitan markets in the U.S. along with Canada and the U.K. The excellent “must-have” information of Bisnow has earned it a robust 600,000 subscribers. The latter is a strong indication of the quality and value of the information offered.
Founded in 2014, Connect Media has a news division that has grown rapidly since its start-up. It now produces 11 daily newsletters along with 10 commercial real estate newsletters that are handled by a crack team of professional editors.
Furthermore, Connect Media creates and promoted north of 200 digital events that draw many prominent names in the commercial real estate sector.
The Real Deal
Industry observers call it “the premier real estate news outlet in America.” The Real Deal has an enormous reach, capturing millions of professionals through print, digital and social media outlets. It offers breaking real estate news, market intelligence reports, proprietary rankings, custom research, trends, profiles and a lot more.
The Real Deal has been rated among the 300 most-visited sites in the United States – and is ranked No. 1 among websites that cater to wealthy followers.
This source is a leading platform that connects commercial real estate professionals with other key players. Those who frequent the site include building owners, building managers, commercial lenders, brokers and professional services firms.
Commercial Observer’s offers weekly coverage and real-time updates on its digital platform. It hosts live events and offers a cogent mix of breaking hard news along with in-depth feature stories. Here you will also find exclusive industry columnists and detailed analyses of market trends.
Many commercial real estate owners have had to close down or sell their assets during the Covid-19 coronavirus pandemic. As they undergo a period of recovery, they have to reopen their doors and think of new ways to sell to the public. There are various solutions available to help business and property owners as they regain strength after a pandemic.
Put Safety First
In the final days of a pandemic, a commercial building owner needs to put the safety of customers first. This means promoting a cleaner, more sterilized environment for all managers, employees and visitors.
Put the Customers’ Needs First
Every customer’s needs and interests change during a pandemic. Most people focus on buying the necessities first along with the items they want to enjoy. It is recommended that sellers find out the bestselling products in the markets at the moment and reprioritize the products that they are selling in their stores.
Keep Up to Date With the News
The news informs everyone about the state of the pandemic in the local community and in the greater nation. Most importantly, business owners need to know the status of local infection rates and the guidelines that politicians are recommending. Their greatest chance at recovery lies in staying informed and relevant to today’s issues.
Choose Traditional vs. Digital Methods
During the pandemic, many business owners transitioned to virtual settings. They took on more digital marketing methods to reach out to clients online and over the phone. As the health crisis is ending, more companies are returning to their physical offices and buildings. It’s necessary to know which businesses, workers and services will return to their previous states and which ones will remain virtual.
Every business’s marketing campaign should be improved and resumed as it was before the crisis began. This means learning how to market again but to a changed audience. Every marketing campaign needs improving to meet the newest, latest demands in the market.
The commercial real estate industry has never remained stable under any condition. But during the recovery period of a pandemic, most consumers are eager to start buying again, and that includes buying business property. Business owners have many opportunities to recover and bounce back from this temporary downtime.