What You Have to Be Thankful for in the Real Estate Market

What fall slowdown? In several markets across the country, the real estate market is showing anything but the common seasonal slowdown. In reality, a new report released last week from the National Association of REALTORS® shows just the opposite.

What You Have to Be Thankful for in the Real estate market

Existing-home sales eclipsed June’s cyclical sales and, in October, zoomed to the highest annualized pace in nearly a decade, according to NAR’s latest report. All major regions saw an increase in sales last month as well.

It’s a good time to be in the real estate business. And, this Thanksgiving season, you have plenty to be thankful for.

The economy is improving: The economy is largely expected to continue growing, at least at a moderate pace, the coming year. Growth can result in slightly lower unemployment, that can help boost consumer confidence. What’s more, an increase in jobs often results in more households looking for homes, writes Jonathan Smoke, realtor.com®’s chief economist, in a very recent column at that site.

Powerful buying forces emerge: Two major demographic shifts are at play in the current housing market that could profoundly drive sales in the next few years: millennials and retiring baby boomers. “We are now in the midst of two massive demographic waves that will power above-average demand for homes for at least the next 10 years,” Smoke says. The median age of a first-time buyer this year was 32, according to the National Association of REALTORS®’ 2016 Home Buyer and Seller Report. Next year, 4.4 million individuals in the U.S. will turn age 32. Further, the second-largest generation is now entering into retirement. Americans ages 65 to 74 are in an essential age range where housing decisions will be made, which typically involve a home sale and a purchase. Over the next five years, the volume of people in the U.S. older than 65 is expected to increase 18%, while the population overall grows only 4 %.

Foreclosures are plummeting: Foreclosure inventory plunged 31% in September and completed foreclosures dropped 7 % year over year, according to data from CoreLogic. What’s more, the volume of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) dropped by 25 % in September year over year and are at the lowest level since August 2007. “Completed foreclosures have fallen by a total of more than 100,000 homes during the 12 months prior to September 2016,” said Anand Nallathambi, president and CEO of CoreLogic. “The decline in foreclosures is one of the drivers in the drop in vacancies, which is positive for homeowners and communities. Heading into 2017 we see that prices, performance and production – the three most important drivers of the real estate market – are all improving.”

More new-homes entering the pipeline: Housing starts rose 25.5 percent in October, reaching a seasonally adjusted annual rate of 1.3 million, the Commerce Department reported a week ago. It is the highest pace since August 2007. Single-family housing starts reached a nine-year high in October, reaching a rate of 869,000.

“These robust figures correlate with strong builder optimism in the housing market,” says Ed Brady, chairman of the National Association of Home Builders. “A firming job market, a growing economy, and rising household formations will keep the housing recovery on track into next year.”

Drones are flying: Long-awaited guidelines were released in June that have allowed more real estate professionals to feature drones into their marketing. They’re capturing aerial pictures and videos of properties to lure buyers. The Federal Aviation Administration released its final rule on commercial drone use in June. You still have to comply with guidelines. Operators are required to now obtain a Part 107 certificate, which replaced the previous Section 333 waiver. Operators also no longer need to hold a pilot’s license. Still, operators must take a test before flying, and they must retake that test every Two years to be able to operate drones. Also, there are restrictions on the number of activities you can do using a drone (such as FAA prohibitions against flying a drone over a person or flying during the night time).

“Businesses are more and more finding opportunities to utilize drones as a way of cutting costs and better serving customers,” says Tom Salomone, NAR’s immediate past president. “That’s true in real estate and other industries as well. As application of this technology picks up, the regulatory landscape will likely continue to evolve.”

Nick & Cindy Davis with RE/MAX Premier Group have assisted hundreds of buyers and sellers throughout the ups and downs of the real estate market sinc e2005. We can assist you in negotiating the current real estate market. We are always just a click here or call to 813-300-7116 away.

Take a look at a few of the most recent homes that came on the market here in the Tampa Area.

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3806 N Lake Drive #24, Tampa, FL

3806 N Lake Drive #24
Tampa, FL

$159,999
- Lot Size
  
  1,307 sqft
- Home Size
  
  1,077 sqft
- Beds
  
  2 Beds
- Baths
  
  2 Baths
- Year Built
  
  1973
- Days on Market
  
  1
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