Today's Headlines - Realty Times
Posted On Wednesday, 10 July 2024 12:29
Posted On Wednesday, 10 July 2024 12:05

Asking rents fell a record 12% year over year in Jacksonville last month, and also declined in Tampa, Orlando and Miami. Austin, TX posted a record drop, too.

The median apartment asking rent in America rose 0.7% year over year in June to $1,654, the biggest gain in over a year and the highest median price since October 2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Florida is bucking the national trend. The Sunshine State’s four most populous metro areas are seeing rent prices decline. Jacksonville’s median asking rent fell 12.4% year over year in June—the metro’s biggest drop in records dating back to 2019. Tampa posted a 6% decline—also the largest on record. In Orlando and Miami, rent prices fell 4.8% and 3.8%, respectively.

Rents are also falling fast in Austin, TX. The median asking rent in the Texas capital decreased a record 12.6% from a year earlier in June—the largest decline among the 33 metros for which Redfin has rent-price data.

Both Florida and Texas built a lot of apartments during the pandemic moving frenzy in an effort to meet surging demand, and now, many property owners are lowering prices to compete for tenants.

Austin issued more multifamily building permits per 10,000 people than anywhere else in the country in 2021-2023, and Jacksonville came in third place, a separate Redfin analysis found. While construction has slowed in many parts of Florida and Texas (and across the country as a whole), metros in the two states continue to top the list of largest building permitters.

“It’s a good time to hunt for bargains if you’re a renter in Florida or Austin,” said Redfin Senior Economist Sheharyar Bokhari. “With so much supply on the market, renters may be able to get concessions like free parking or discounted rent. But renters in Florida should be aware that landlords are grappling with surging home insurance costs, and they may ultimately ask tenants to foot the bill via higher rents.”

Rents may also be falling in these areas because they overheated during the pandemic—causing many residents to get priced out—and are still coming back down to earth. In Tampa, for example, rents surged as much as 37.8% year over year in 2022—more than double the nationwide gain at the time.

Rent Prices Are Inching Up Nationally as Tough Homebuying Market Buoys Rental Demand—But Rising Inventory Is Limiting Price Growth

Demand from young renters, many of whom are opting to continue renting rather than face an increasingly unaffordable homebuying market, is bolstering rent prices nationwide. But so far, price growth has been limited because there are still a lot of new apartments hitting the market to meet that demand. When supply is on the rise, landlords typically don’t have a lot of leeway to jack up prices because they’re working to fill vacancies.

Apartment builders have pumped the brakes on the number of projects they’re starting—multifamily building starts have fallen below their 10-year historical average—but completions are still near their record high because there were so many construction projects kicked off during the pandemic that are just now being finished.

As a result, newly built U.S. apartments are filling up at the slowest pace since 2020, and the apartment vacancy rate stands at 7.8%, up slightly from 7.4% at the start of 2023 and 7% at the start of 2022.

Rents Are Up More Than 12% in Virginia Beach and Cincinnati

In Virginia Beach, VA, the median apartment asking rent rose 12.9% year over year in June—the biggest jump among the 33 metros Redfin analyzed. Next came Cincinnati (12.2%), Washington, D.C. (11.9%), Chicago (11.3%) and Baltimore (10.7%).

Rent prices are rising in many Midwest and Northeast metros because those regions haven’t been building as many apartments as the Sun Belt. The Midwest is also the most affordable region to live in, which helps bolster demand at a time when housing affordability is strained across most of the U.S.

The biggest asking-rent declines were in Austin (-12.6%), Jacksonville (-12.4%), San Diego (-11.4%), San Francisco (-6.1%) and Tampa (-6%).

To view the full report, including charts, methodology and metro-level data, please visit:
https://www.redfin.com/news/rents-fall-in-florida-austin-june-2024

Posted On Wednesday, 10 July 2024 10:45 Written by
Posted On Wednesday, 10 July 2024 10:33

26% of Realtors® Said Lack of Inventory and Housing Affordability Prevented Clients from Buying Homes in 2023 as Existing-Home Sales Fell to Lowest Level Since 1995

In 2023, when the volume of existing-home sales hit the lowest level since 1995, 26% of Realtors® named lack of inventory and housing affordability as the most important factors limiting potential clients from making a purchase, according to the National Association of Realtors®’ https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile">2024 Member Profile. This annual report analyzes members’ business activity and demographics from the prior year.

“2023 was a difficult year for Realtors® due to high mortgage rates and low housing inventory, which significantly impacted home sales volume,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Realtors® faced competition at all angles – not only to represent clients but also to ensure their buyers’ offers were accepted amid tough real estate market conditions.”

Nearly two out of three Realtors® (65%) hold sales agent licenses, while 22% hold broker licenses and 17% hold broker associate licenses. Seventy-four percent of members specialize in residential brokerage. Like 2022, relocation, residential property management and commercial brokerage are members’ most common secondary specialty areas.

Members typically have 10 years of real estate experience, down from 11 years in 2022. Seventy-three percent of members are very certain they will remain in the real estate industry for at least two more years. Brokerage specialists had a lower sales volume ($2.5 million vs. $3.4 million), and the typical agent had fewer transactions (10 vs. 12) in 2023 compared to 2022.

The typical Realtor® earned 20% of their business from previous clients and customers, down from 27% last year. The most experienced members – those with 16 or more years of experience – reported a greater share of repeat business from clients or referrals (a median of 42% in 2023). Similar to 2022, members with two years of experience or less reported no repeat business in 2023. Overall, Realtors® earned a median of 21% of their business from referrals, a decrease from 24% in 2022. Referrals were also more common among members with 16 or more years of experience – a median of 29% – compared to no referrals for those with two years or less of experience.

The typical property manager managed 31 properties in 2023, down notably from 40 properties in 2022. The typical Realtor® worked 35 hours per week in 2023, slightly less than last year.

The median gross income for Realtors® decreased to $55,800 in 2023, down from $56,400 in 2022. Realtors® with 16 years or more experience had a median gross income of $92,500, up from $80,700 in 2022. Realtors®’ total expenses increased to $8,450 in 2023 from $8,210 in 2022.

A majority of Realtors® (53%) worked with an independent company and 88% were independent contractors at their firms – both figures nearly identical to 2022. The typical Realtor® had a median tenure of five years with their current firm, down from a median of six years in 2022. Eight percent of members reported working for a firm that was bought or merged in the past two years, down from 26% in 2022.

“Regardless of market conditions, agents who are Realtors® sought a career where they could be their own boss as an independent contractor, specialize in residential or commercial brokerage, and embrace new technologies to make transactions happen,” said Lautz.

Daily, most Realtors® use a smartphone with wireless email and internet capability (96%) and a laptop or desktop computer (91%). The smartphone features that members use most frequently daily are email (94%), social media apps (60%) and GPS (56%). Sixty-four percent of Realtors® use multiple listings software daily. Text messaging (94%) is the top method of communication for members with their clients, followed by telephone (91%) and email (89%).

More than two-thirds of members (72%) have their own website – 44% of which are provided by the member’s firm. For professional purposes, most members use Facebook (77%), Instagram (57%), and LinkedIn (55%).

Six percent of Realtors® use drones themselves as part of their business, and 46% have hired a professional drone operator. Four percent and 2% of members, respectively, use 3D/virtual tour and virtual staging technology daily. 

Sixty-five percent of all Realtors® were female in 2023, an increase from 62% last year. The median age of Realtors® was 55, down from 60 last year. Thirty-five percent were 60 years or older and 4% were less than 30.

Seventy-nine percent of Realtors® were White in 2023, down from 81% last year. Hispanics/Latinos accounted for 10% of Realtors®, followed by Black/African Americans (6%) and Asian/Pacific Islanders (4%). New members were more diverse than experienced members. Among those who had two years or less of experience, 40% were non-White.

Realtors®’ education level exceeded that of the general public. Ninety-two percent of members had some post-secondary education, with 34% completing a bachelor’s degree as their highest level of education. Seventy percent of members reported volunteering in their community – most commonly among members aged 40 to 49 years.

“Realtors® are hardworking people who advocate for homeownership and property rights in the communities they serve,” said NAR President Kevin Sears, broker-partner of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “Regardless of how you find a property, expert agents who are Realtors® help take the stress out of the homebuying process and navigate the most intricate and significant transaction many will ever complete.”

Survey Methodology

In March 2024, NAR emailed a 98-question survey to a random sample of 157,711 Realtors® and received 6,113 responses. The survey had an adjusted response rate of 3.9%. The confidence interval at a 95% level of confidence is +/- 1.25% based on a population of 1.5 million members. The association weighted responses to be representative of state-level NAR membership. Information about compensation, earnings, sales volume and number of transactions are characteristics of calendar year 2023, while all other data are representative of member characteristics in early 2024.

Posted On Wednesday, 10 July 2024 07:25 Written by
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Posted On Tuesday, 09 July 2024 10:49 Written by

4th of July is celebrated in recognition of the signing of the Declaration of Independence and the formation of these United States of America from the British Empire. There were many things that led to this occurring and, if dealt with differently, might have led to a completely different result. As throughout history we can look BACK and identify specific things that took the world down one path verses another. Studying history allows us to discuss these choices and outcomes.

American history isn’t the only history we should be looking at today and the long holiday weekend. Our personal and professional history can be very helpful to review from time to time. While personal history is a much deeper topic than I can help you with here, a review of your own professional history can be very valuable.

Today we are at the beginning of the third quarter of this year’s business cycle. However, we also know that we can easily identify our projected production through the third quarter by just looking at our current pipelines. We can quickly compare these numbers against our business plan to check where we are in relation to where we expected ourselves to be. We also know that it is unlikely that any business arriving after November 20th will close and get us paid to count in our 2024 income. That means while we are just past the halfway point in the year, we only have about 109 days left to produce results that will add to our income this year!

The next three days are the start of those last 109 days. What will you do to be sure you have a plan in place to take advantage of each and every day? What calls will you make? What people and places will you visit? Even just one hour of specific effort this weekend can make a huge impact on your bottom line for 2024!

Many of you who read this are not where you want to be in your professional lives. Why not use the Independence Day weekend to help you achieve the professional independence you desire? History will show you if you are on the right path or if you need to make a change. If you need help with that plan for change, please just send me a message and we can talk. This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Tuesday, 09 July 2024 00:00 Written by
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