Our thoughts and prayers go out to all those who have had to endure the devastation of Hurricane Harvey, Irma and Maria. We encourage everyone to support the relief efforts in any capacity possible.
I recently read an article in the WilmingtonBiz Journal (NC) that discussed that a growing cohort of individuals over the traditional retirement age of 65 who want to remain professionally engaged. But for many, a willingness to carefully evaluate later-life goals as well as personal strengths, weaknesses and finances is a must. Click to read the article; Wilmington Biz.com. Just reminded me of another reason for us to be fully connected with your city, town and surrounding community business climate.
We are vastly approaching our annual conference where you will be exposed to some of the brightest in the industry. Discounted pricing ends soon so be sure to register today! You won’t want to miss the exciting lineup of presenters and event at the ideal-Living Showcase Home at Compass Point. For more information go to www.the-aarc.org/conference.
New data is available on the travel spending of millennials. Millennials have overtaken Baby Boomers as the largest living generation in the U.S., and Concur has analyzed their travel spending habits, sifting through $36 billion in expenses. Millennials still only account for 20% of dining, entertainment and hotel transactions overall, and their average amount of expenses per employee in 66% lower than older employees. The gap varies widely by type of expense, however, with hotel-related expenses only showing a 3% difference. Source: tnooz
National home prices rose again in the three-month period ending in June. The S&P national price index increased by 5.8% on an annual basis, bringing prices to their highest level in the 27-year history of this index. Seattle (Washington), Portland (Oregon), and Dallas (Texas) reported the highest year-to-year gains among the 20 biggest cities in America, with prices increasing in Seattle by 13.4%. Of these 20 cities, 14 had an increase in prices. Source: S&P Dow Jones (8-page PDF)
Andre’ Nabors Chair, The AARC
Borrowers May Find it Easier to Get a Mortgage
RealtorMag.com | September 26, 2017
Lenders reportedly are loosening their standards to qualify for a mortgage. Fannie Mae’s third-quarter 2017 Mortgage Lender Sentiment Survey shows the main reason behind the easing of credit has been the increased competition that lenders are feeling.
Across all loan types—GSE-eligible, non-GSE-eligible, and government—lenders reported easing credit standards over the last three months. Further, the net share of lenders who say they expect to ease credit over the next three months reached a survey high of 18 percent.
“Lenders further eased home mortgage credit standards during the third quarter, continuing a trend that started in late 2016,” says Doug Duncan, senior vice president and chief economist. “In particular, both the net share of lenders reporting easing on GSE-eligible loans for the prior three months and the share expecting to ease standards on those loans over the next three months increased to survey highs. Lenders’ comments suggest that competitive pressure and more favorable guidelines for GSE loans have helped to bring about more easing of underwriting standards for those loans. We believe that GSE attempts to relieve repurchase concerns and expand credit for creditworthy borrowers have contributed to the easing trend.”
Loan demand has been down in recent months, as fewer homeowners refinance their mortgages. As such, lenders are reporting negative net profit margins for four consecutive quarters.
“The share of lenders citing competition from other lenders as the key reason for a negative profit market outlook rose to a new survey high,” Duncan says.
Source: Fannie Mae
Dania Perry, Century 21’s top agent in the world, researches properties and uncovers the information that best motivates her clients to buy and sell.
Dania Perry, who has been recognized as Century 21’s number one agent in the world for five years in a row, began her real estate career just before the market started its downward spiral in 2007. Though it was a less than ideal time to launch her business, Perry, a sales associate with Century 21 Jim White & Associates in Treasure Island, Fla., thrived even through the hardest of times. She attributes her success to her analytical, data-driven approach to customer care.
Perry, who also has been named Century 21’s top agent in the United States for six consecutive years, says her impressive recognition did not come without time and effort. “This isn’t luck or a magic pill,” she cautions. “This is long, hard work.”
Perry says much of that work is in the customized, research-heavy spreadsheets she provides to each client. Thanks to a background in engineering, analyzing data and synthesizing the information into a user-friendly format comes naturally to her. “My spreadsheet is a powerful tool,” Perry says. Each spreadsheet takes her about four hours to create. “I include a ton of information so a buyer or a seller can get a complete picture of a property’s worth.”
From researching public records and assessing land value to comparing comps and evaluating the permit history of each property, Perry looks at every angle to provide her clients with a holistic understanding of not only the value of an individual home but also its surrounding area. On each spreadsheet, Perry includes pertinent information from MLS records, such as lot size and total square footage, but also includes data such as whether the home has central air conditioning or was renovated.
Her goal is to make clients aware of elements other agents might overlook. “Many real estate professionals do not include unheated square footage during property assessment, but these elements can add tremendous value—especially if the home is a waterfront property,” Perry says.
She includes even the minutest details. “The price per square foot [of every home isn’t] created equal,” she says. “It’s my job to determine the accuracy of the figures provided.” When researching comps, Perry doesn’t just look at active listings; she also examines pending sales and previously sold properties. “Pending sales give me a good look at what was attractive enough to garner a contract, while active listings provide me a look at the competition so I know how to position myself.”
Perry finds her spreadsheets to be useful at intervals throughout an entire transaction. When negotiating with a seller, for example, she uses the spreadsheet to show research supporting her client’s offer amount. When it comes to appraisals, Perry uses her spreadsheet to convey the information she finds about permits, renovations, and other details.
Clients find the information Perry provides especially useful, whether they’re buying or selling. Buyers can trust in the soundness of a data-driven offer. Sellers are comfortable knowing their asking price is fair and reflects not only market value but also the work they have personally put into their home. Perry has even used her spreadsheets to help a builder who was seeking information about the value of the area where he planned to build several beachfront properties. Perry recalls the conversation fondly: “I told him, ‘You have to stay under $4 million.’” After the developer sought Perry’s advice, all the homes in the development were sold within a week of the public release of plan renderings.
“This is a professional way to help someone make a decision when buying or selling a home,” Perry says, referring to her spreadsheets. “Everything is right there in black and white.”
Her success in the business is a testament to putting in a little upfront effort. In the past year, Perry closed 20 sales worth more than $3 million apiece, and more than half were luxury waterfront properties. That’s impressive for someone working in a small market. “We’re Florida’s best-kept secret,” she says.
“Data moves people,” Perry attests. She recalls a client who wanted to purchase quickly and was willing to pay the full ask of $3.2 million on one luxury waterfront property. Perry convinced the client to give her some time to work up one of her spreadsheets and ensure the price was fair.
Her research showed homes in the same area sold for quite a bit less, and she was able to help her client make an educated bid on the home. In the end, the client bought the home for $400,000 less than the asking price. “Buying the right home is an emotional process, and I was able to use data to provide my client with clarity and confidence,” she says.
Home Prices in 20 U.S. Cities Increase More Than Forecast (2)
(Bloomberg) — Home prices in 20 U.S. cities climbed more than forecast in July, reflects solid demand against a backdrop of modest listings of properties, figures from S&P CoreLogic Case-Shiller showed Tuesday.
|Highlights of Home Prices (July)|
Buyers are competing for a limited number of for-sale homes, allowing sellers to boost asking prices. Property values are consistently outpacing wage growth, helping explain why the share of first-time buyers of previously owned homes in August was at a one-year low. At the same time, owners’ equity as a share of total real-estate holdings climbed in the second quarter to the highest level in 11 years.
Home prices may also get a boost in coming months after hurricanes Harvey and Irma reduced housing supply in parts of Texas and Florida. Affordability may remain challenging, as both sales and construction are interrupted by clean-up efforts. At the same time, a strong labor market and low-borrowing costs continue to encourage hopeful homebuyers.
While home prices continued to advance strongly along the northwest part of the country, values were also picking up in Denver, Dallas and Las Vegas — underscoring a broadening of appreciation throughout the U.S. Las Vegas, one of the hardest-hit cities during the housing collapse, registered the third-largest year-over-year advance in July.
“While the gains in home prices in recent months have been in the Pacific Northwest, the leadership continues to shift among regions and cities across the country,” David Blitzer, chairman of the S&P index committee, said in a statement. “Rebuilding following hurricanes across Texas, Florida and other parts of the south will lead to further supply pressures.”
- Seattle (up 13.5 percent), Portland, Oregon (up 7.6 percent), and Las Vegas (up 7.4 percent) were the top three cities in terms of year-over-year price appreciation
- Home prices in Detroit and Dallas were up 7.3 percent, while Denver posted a 7.2 percent advance
- After seasonal adjustment, Los Angeles and San Francisco had the biggest month-over-month increases at 0.8 percent, while Chicago had a 0.2 decrease
©2017 Bloomberg L.P.