Les Boomer's Real Estate Updates

Can you see yourself wanting a different style of home in the next 3 to 6 years?  If so, there may be some advantages to selling today. There are at least seven factors why now might be a good time to consider selling your home.

Less Competition: Inventories are lower at this time plus we are experiencing the least amount competition from distressed properties since 2007.

Demand: May was a very strong month as more buyers look to take advantage of prices and interest rates before they rise. In addition to migration, some of the people who lost their homes are now re-entering the market.

Affordability for Buyers: Interest rates are very low allowing more buyers to afford a home like yours. This helps to create a larger buyer pool which normally leads to a higher price and less time on market.

Your next purchase may never be more affordable: While prices have definitely risen over the past year, prices are still historically very low compared with where they have been. All indications are that prices will continue to rise. Action today reaps the benefits of price and interest rates.

Impact of Interest Rates: Low interest rates can have a compounded affect.  First, the low interest rates make your home more affordable to more people creating a larger buyer pool and thus more demand.  Additionally, if you are financing your next purchase, the same principle will apply to you as well. You may be able to buy more home, or possibly lower your monthly payments.

Days on Market: When you put your home on the market, it’s like inviting company over every day. Unfortunately that means you may need to “prepare” for company every morning as an additional chore. Additionally, the market has shown that the quicker the sale, the higher the price. Generally speaking, the Days on Market are low compared to where they have been reducing the stress of being on the market.

Favorable Press: A lot of people use the headlines to determine how they feel about a subject. Generally speaking, the headlines have been very positive about real estate and quick to point out that we are in a seller’s market. 

There’s a reason why they call it a seller’s market!!!

Realogy Moves 'FWD' With Innovation Summit

Real Estate Leader to Host Competition and Networking Opportunity for Emerging Technology Companies June 18

MADISON, NJ–(Marketwired – Apr 17, 2013) – Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services, today announced that it will host the inaugural Realogy FWD Innovation Summit, on Tuesday, June 18 at Realogy's new, state-of-the-art headquarters building in Madison, N.J. The Realogy FWD Innovation Summit is centered around a competition with a $25,000 cash prize for the company that presents the most innovative technology product or service designed for the real estate industry. The invitation-only event is designed to find and attract the best new technology products and services for Realogy's franchise networks and company-owned residential real estate brokerages, which collectively operate approximately 13,600 offices with 238,900 independent sales associates doing business in 102 countries around the world. Of course this includes NRT LLC and Coldwell Banker Residential Brokerage.

"The real estate industry is gifted with many entrepreneurs creating exciting and breakthrough solutions," said Alex Perriello, president and CEO of the Realogy Franchise Group. "The intent of the Realogy FWD Innovation Summit is to provide innovators the opportunity to showcase their big ideas directly to the leaders across the Realogy family of companies, bypassing the time it typically takes them to get their ideas to the decision makers. As the largest residential real estate franchisor in the world, we are continuously looking forward and focused on ways to benefit our franchisees and sales professionals to help them be more successful while simultaneously supporting innovation, new thinking and technology-driven business solutions."

A select group of companies will be chosen from among the online applicants and invited to present their emerging technology ideas and products to an invitation-only audience of Realogy executives and franchisees. In addition to Perriello, the panel of judges will include: Marc Davison and Brian Boero, co-founders of 1000watt Consulting; leading brokers and executives from within the Realogy franchise networks; and other third-party real estate and technology experts.

The innovative real estate and technology presentations will be grouped into distinct categories such as productivity, marketing, social and consumer. From among the category winners, one company will be crowned as the 2013 Realogy FWD Innovation Champion and will receive the Realogy FWD Innovation prize of $25,000. The other category winners will be recognized as Realogy FWD Innovation Summit finalists. In addition to presenting their ideas, each of the companies selected to participate in the exclusive event will be able to tap into the vast Realogy network of real estate leaders.

Companies interested in presenting at the Realogy FWD Innovation Summit should apply online via the event website, http://www.realogyfwd.com. The deadline for applications is May 15, 2013.

For the second consecutive year, we are proud to share with you that Realogy has been recognized among the World’s Most Ethical Companies. This recognition highlights companies that outperform their industry peers for ethical conduct.  

“We strive to set the standard for ethical conduct in our industry, and we are humbled by this recognition from Ethisphere Institute, the gold standard in advancing the social and corporate significance of ethical conduct.” – Richard Smith 

The award was presented last night during Ethisphere’s 2013 Honoree Dinner. In a message to all Realogy employees, Richard Smith commented, ”We were proud to accept this award on behalf of all of our employees. You should take pride in this recognition since each of you is individually charged with the responsibility for ethical behavior, and it is clear that you take this responsibility seriously.” 

“As we look ahead to building on our strong ethical foundation, we continue to advance the cause throughout all aspects of our business -including our business partners, vendors, suppliers and our industry.”

“Congratulations to all and thank you for upholding our high standards in every aspect of your responsibilities.”

It’s very rewarding to work for a company that stands for and upholds the highest ethical standards.

Annual Training Magazine Designation Honors Organizations With the World’s Best Learning and Development Programs

 Coldwell Banker Real Estate has been ranked No. 3 among organizations from all industries for its Coldwell Banker University training platform in the annual Training Top 125 by Training magazine, the training industry’s premier publication. This marks the fourth consecutive year Coldwell Banker Real Estate appeared on the annual Training Top 125 list, improving on last year’s No. 9 ranking and repeating as the best training organization in the real estate industry. Coldwell Banker^® was joined by Verizon, Jiffy Lube, Farmers Insurance and CHG Healthcare Services in the top five.

NRT Buyer Sentiment Survey Results

While low interest rates and change in life situation were cited as the 2 highest factors motivating buyers, expectation that home prices will rise was #3 and this is very new sentiment.   This value optimism is the factor that has grown the most over the last 12 months (61% say more important than 12 months ago) closely followed by “increased optimism around selling.”  There is a very clear correlation between growing value optimism and complaints about lack of inventory. 

 

These market dynamics do not seem to be driving a big increase in move up buyer.   42% of agents said move-up buying was increasing “modestly’ and only 7% said it was increasing significantly.

 

Below are rolled up findings from the survey.  

 

WHAT IS MOTIVIATING BUYERS TO LOOK NOW (factor is “very motivating” or “motivating”)

 

83%        Low Interest Rates  

 

60%        Change in life situation  

 

57%        Expectation that home prices will rise 

 

51%        Job Relocation

 

46%        Real Estate Investment Value 

 

43%        Confidence in personal economic outlook 

 

42%        Increased Optimism around selling 

 

37%        Rising rental prices 

 

WHAT FACTORS HAVE BECOME MORE IMPORTANT

 

The following is the rank of factors that agents felt had grown in importance in motivating buyers to look.  The % is how many felt the factor was “more important now than 12 months ago”

 

61%        Expectation that home prices will rise 

 

51%        Increased Optimism around selling 

 

44%        Low Interest Rates  

 

35%        Real Estate Investment Value 

 

34%        Confidence in personal economic outlook 

 

28%        Rising rental prices 

 

27%        Change in life situation  

 

22%        Job Relocation

 

WHAT ARE BUYERS COMPLAINING ABOUT

 

% Saying Frequently (or both “frequently” and “more often than not”)

 

41% (69%)           Lack of inventory 

 

19% (52%)           Uncertainty in economy

 

11% (44%)           Home affordability

 

19% (43%)           Difficulty with mortgage appraisal.

 

18% (42%)           Difficulty qualifying for a mortgage

 

HOW DO BUYERS COPE WITH LIMITED INVENTORY (agent could pick more than 1)

 

87% considered expanded the geography the would consider

 

85% prepared to pay more

 

74% considered distressed properties

 

70% stopped looking

 

54% considered buying new construction

 

54% considered foregoing a move

 

WHAT IS HAPPENING IN OVERALL MARKET:

 

PRICES:

 

63% of our agents found that home prices were increasing, with larger increases identified on the west coast.  Half of our San Francisco agents described home prices as increasing significantly.

 

INVENTORY: 

 

78% of our agents found inventory to be decreasing.   Atlanta, Florida, Hawaii and Sacramento are feeling the most  constrained by low inventory.

 

TRANSACTION VOLUME:

 

Agents report that transactions are up somewhat – 40% – with the most activity being reported in the Midwest and west.

 

BUYER CONFIDENCE:

 

60% of agents report that Buyer confidence is increasing, across the board.  Sacramento and Harrisburg while generally positive, lag the nation.