I think we say this for everyone, but 2020 can take a hike.
The good news is that a majority of real estate professionals surveyed by RCLCO in their mid-year real estate sentiment index believe that some of the more economically significant sectors of the real estate industry will start to bounce back in the second half of 2020 — yes, we’re still just half-way through this abominable hellscape of a year.
The firm surveyed experienced leaders in the real estate industry to find out whether they were optimistic about business in the next six to 12 months, or if they were planning to sell everything, find something with a bunker, and wait the economy out.
For the most part, many sectors within the real estate industry have already bottomed out, and many respondents believed that the market will actually rebound in the coming year, especially homebuilders, developers, and master-planned communities. Industrial got a boost from the pandemic (yay?) thanks to all those new logistic needs as more people order online and more hospitals require more supplies because some people won’t wear a dang mask.
You can see all of the interesting graphs and data here.
Renters Who Work From Home Demand More
I’ve been working from my home office exclusively since 2012, and I know that if I was just now ditching my commute (and horrible office coffee) due to COVID-19, I’d be hit with a heck of a learning curve.
And that’s precisely what has happened with many renters that were either laid off, furloughed, or told to start working from home — they are now looking to better digs to meet their new needs. And more affordable ones, at that.
According to a study from Apartment Guide, renters are going virtual more — whether for applications or showings or for group events like wine tastings and yoga classes. More renters are also looking for areas with more affordable prices as location is no longer a defining factor considering how many jobs have moved online and out of offices.
However, more and more people are going to choose to rent instead of buy, and will be looking for truly affordable housing as unemployment shows no sign of relenting.
The only upshot for renters? Deals are to be had for high-end rental housing, as many property owners and landlords will be offering steals to keep tenants from looking to see if the grass is actually greener at a different place.
Read more about the study here.
Frisco Named a Top City For First-Time Buyers
In the fourth quarter of 2019, first-time buyers made up 39 percent of all real estate purchases. One has to wonder if that still holds true in 2020 despite the lack of inventory. However, more and more people are being drawn to the ‘burbs, and of cities in the Lone Star State, Frisco was the highest-ranked town in WalletHub’s list of top spots for first-time homebuyers.
Let me be clear — at 24th on the list, Frisco doesn’t exactly lead the pack. However, according to WalletHub’s metrics, Henderson, Nevada, ranked first, so maybe they consider gambling addictions and dry sinuses as desirable traits? (Just kidding, Henderson! We love you!)
Interestingly enough, the only time that Texas cities came up on comparison charts was for cost of living, where Laredo took the top spot and Amarillo took No. 5.
You can see the full ranking here.
MetroTex Gives Warning to Brokers Who Are Clearly Not Cooperating
The recently enacted Clear Cooperation Rule handed down by the National Association of Realtors last year has rubbed some brokers the wrong way. But now, MetroTex Association of Realtors is handing down warnings to brokerages that are still advertising off-market listings.
The policy, which went into effect in May, says that a listing must be in the area MLS 24 hours after being advertised by a brokerage. So far, MetroTex has handed down 40 warnings since the start, MLS director Cathy Faulkner told the Dallas Business Journal.
MetroTex will be giving out warnings until the end of the year. After that, there will be fines instead of warnings, she said.
The first fine is $1,000, the second fine is $3,500 and the third fine is $5,000.
Need a refresher on the rule? Check out this report CandysDirt.com posted in November of 2019.