Real Estate Is Going Mobile!
It is clear that the mobile revolution is impacting the way that consumers find real estate information and properties. Prudential Georgia Realty has released PGR Mobile Solutions – the most comprehensive and integrated suite of mobile marketing solutions available. Do you know about text marketing, QR codes, mobile marketing campaigns and mobile real estate searches?
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What Are The Opportunities To Make Money In Real Estate?
This chart shows the latest estimate of future home values for Metro Atlanta. We will continue to watch changes in the leading indicators and keep you updated on our forecast. These assumptions are based upon a compelling set of facts and local market insight which includes the following:
- The economic factors that impact real estate demand trends including employment, the rate of new residents moving to our market and consumer confidence.
- The supply trends of real estate properties for sale including resales, new homes and short sales & foreclosures.
- The trends for mortgage rates and availability of credit.
In summary, we believe that short sales & foreclosures will subside back to more normal levels in a few years. Currently, over 60% of closed transactions are short sales or foreclosures. We believe that new homes inventory will remain low until home values recover to higher levels. Right now, most properties are being sold below replacement costs. Therefore, in 2013 and 2014, we expect to see a seller’s market with abnormally high appreciation rates. Then, we expect new home starts to crank back up. By 2015, we will get back to more normal appreciation levels. These models assume the same level of demand we saw in 2010 which should be a conservative view given the slow but sure recovery in employment, the economy and new residents. One of the biggest factors for real estate decisions is mortgage rates. All analysts expect mortgages rates to rise in the future.
So Where Are The Opportunities To Make Money?
All markets work in cycles and we all understand the concept of “buy low and sell high” to make a profit. For real estate, you must consider both the purchase price and the mortgage rates. This is an unprecedented time where both prices of homes and mortgage rates are historically low. In other periods where home prices were historically low, mortgage rates were not. When mortgage rates were historically low, home prices were not. Many potential homeowners or inventors will look back at this “window of opportunity” and regret missing this unique opportunity! So here are some specific opportunities:
- First Time Home Buyers – Prices are expected to remain low for the next few years in areas where we expect more short sales & foreclosures. BUT, mortgage rates WILL NOT remain low. We expect steadily increasing mortgage rates in 2011 and 2012. Just do the math and you will see that mortgage rates have a much larger impact on your property investment.
- Move Up Buyers – This is easy math. Again, you need to consider mortgage rates. Even if you lose money on your current home, the gain on your higher priced home will more than offset that loss. There are creative mortgage programs that can help you bridge the gaps. Move Up Buyers dropped significantly in 2008 and 2009. In the latter part of 2010 and this year, we are seeing those buyers move more aggressively in the market. They understand the window of opportunity and the cost of waiting due to increasing mortgage rates.
- Investors For Income Properties – The future forecasts for rentals and leases is bright – especially in the lower end of the market. The more stringent qualifications for mortgages are driving many potential home buyers to rent. The opportunity to find income properties at low prices and set a low fixed mortgage rate will serve investors well.
- Baby Boomers Moving To Less Maintenance Homes – This is the big opportunity that is being missed by thousands of baby boomers across our market. The big trend is towards a smaller, less maintenance, energy efficient home that is still very nice. There are lots of these types of homes available in all price ranges. Some great examples are homes built by TPG Homes. Click here to see some examples of live, work and play communities. The big obstacle is overcoming the emotion of losing money on your current home. Even if you lose money on your current home, the cost of waiting is significant. The big factors are higher incremental carrying costs, ongoing maintenance and rising future home prices. If you wait approximately 6 years for the value of your current property to return, the price of your desired property will have also risen. I can show the math for your situation. The BIG FACTOR is rising mortgage rates. If rates rise 1 or 2 percentage points, that extra cost is much higher than any loss you may have incurred on your current property.
Contact Me To Learn How I Can Help You Make Better Real Estate Decisions.
I hope you found this newsletter informative. The real estate market is changing quickly. I have access to the latest market trends and proprietary information that is not available to the public.
If you are considering listing your property for the spring or summer market, contact me quickly. The market is changing fast right now and you need to have a winning marketing strategy based upon the most up-to-date market facts.
If you are interested in buying, I can help you find the right property. There are many new details to consider when looking at the options today. This is especially true for short sales, builder foreclosures, bank-owned properties and auction properties.