Bi-Polar Market

Bi-polar Market

We all know the Market is hot right now.  Burning hot in some areas of the country, but did you also know that home ownership rates are nearing record lows?  According to realtormag, the first quarter of this year's home ownership plummeted to 63.6 percent, the third lowest on record.  With that said home builders say they are finally ready to build more new homes.  NAHB forecasters predict that single-family production will see a 14 percent uptick this year to 812,000 units, and then rise another 19 percent to 964,000.  Are you confused yet?  Just wait it gets better. 

New York Fed President and CEO William C. Dudley stated that "the housing market should remain on a solid trajectory, supported by rising employment and low mortgage rates. I continue to anticipate that consumption and housing activity will expand at a moderate pace this year."  Which all sounds really good, except lots of real estate agents like Marianne Guenther Bornhoft are a little scared.  "I'm a little scared that people are going to, again, get ahead of themselves."  Aaron Cunningham, owner of the Citibroker firm, has similar worries.  "I'm making more money today than I ever have, However, when times are good , it's really easy to get stupid."  Many agents don't feel we have a sustainable market right now but they also don't think it's a bubble either.  So what is it that's happening right now?  Inventory is down, prices are up, bidding wars are becoming the new norm, mortgage rates are not rising, the economy is coming back, and with all this the market looks a little like it did before the last crash.   What The Hell!

What does it all mean?  I'm not really sure but what I do know is we all (buyers, sellers and agents) need to be careful. Be aware that all the normal rules still apply so don't get crazy or emotional about selling or buying your home.    Always let logic rule and make sure you have an agent that knows what they are doing.  Good luck out there.

 

Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI, 5-STAR, SRS
RE/MAX Country
Cynthia@Cynthia-Online.com
(360) 400-3475
www.cynthia-online.com

Millennials in the Market Part 3

Millennials  part 3

At this point we know what millennials want, lots of amenities, smaller, flexible spaces, historic structures and socially engaging neighborhoods all in the right price range.  We also know they are in direct competition with baby boomers for these properties at some what of a disadvantage because of there lack of savings and slower economic growth and their lack of experience in negotiating for what they want. Millennials are now the biggest group of home buyers in the market and they are changing things including how agents do business. 

According to NAR survey only 3 percent of agents are under 30 and 81 percent are over 45.  That means many old dogs have to learn some new tricks. To say millenials are technology savvy would be an understatement.  More than 50 percent of millennials search for homes on their phones and among those, 26 percent end up buying a home they found that way, according to National Association of Realtors. Millennials rarely need agents to find homes for them, they usually have their own list, and they’ve already researched comparable sales and chosen a neighborhood.  “With millennials, we do not control information,” Says Player Murray, managing broker at Berkshire Hathaway HomeServices.  “what they need is for us to interpret the information.”   But that isn’t always easy for agents either.  Millennials don’t want to talk.  They would rather email or text.  Murray says “they don’t want to be bothered with conversation of it can be texted.”  Which can be a real challenge for agents who have spent most of there careers on the phone with their clients.  Agents also have to learn to use social media in new and creative ways in order to keep millennials engaged.  “They need to feel like they’re a part of your business.” Murray says.  “Just re-posting an article that’s been posted 1,000 times across the country isnt enough.”

With all that said millennials are still the most likely group to use agents to buy a home.  They are more likely to buy a fixer and value the advice, resources and referrals an experienced agent can provide.  They are also all very new to the home buying game and although there may be a huge disconnect they still need the help.  So agents are changing the way they do business and trying very hard to understand the Tweets, short cryptic emails and acronym laced texts.  Agents are getting apps for their businesses and hiring social media marketing experts.  It just goes to show you can teach an old Dog new tricks.  

Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI, 5-STAR, SRS
RE/MAX Country
Cynthia@Cynthia-Online.com
(360) 400-3475
www.cynthia-online.com

      

Your Home - Heart-Healthy Neighborhoods

Living in a friendly neighborhood may be healthy for your heart, according to a recent study by psychologists at the University of Michigan.  In fact, the more social connections you have among your neighbors, the less likely you are to die from a heart attack.

The study analyzed the social connections of more than 5,000 adults in urban, suburban and rural areas over a four-year period.  Researchers controlled for factors like age, race, income, marital status, education, mental health, optimism and other known health-risk factors associated with heart attacks, such as diabetes, obesity and high blood pressure.  By the end of the four years, 148 of the individuals studied had suffered a heart.

Maintaining friendly relationships with your neighbors may be good for your health because neighbors are more likely to check on each other and notice any potential health problems, share resources and health information, and lend money.  They can also offer emotional support, which can be a buffer during times of stress.

Conversely, other studies have shown that negative aspects of a neighborhood can have a detrimental effect on a person's health.  For example, living in areas with violence, noise, poor air quality and access to too many fast food restaurants can have a negative impact on a person's health.  Further, a study at the University of Pennsylvania finds that living in areas with abandoned buildings can lead to isolation and hamper social relationships, which can lead to poor physical health of residents who live nearby. 

Being helpful and neighborly is not only good for your health, it's good for the health of the neighborhood.

Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI, 5-STAR
RE/MAX Country

Cynthia@Cynthia-Online.com

(360) 400-3475

www.cynthia-online.com