Author: LAT

The average real estate commission when you hire a REALTOR to sell your home, also called a “broker fee,” is typically 6%-7%. Usually the fee is calculated at either a percentage on the full amount of the sale, or 6%-7% on the first $100,000 of the sale price, and then a lower percentage on the remainder of the sale price.

For example, if you sell your home for $300,000, your broker fee will either be $18,000 (if a flat 6%), or $6,000 on the first $100,000 of the sale price (or 6%) and then $8,000 on the other $200,000 (or 4%), for a total fee of $14,000.

When inventory is low, real estate agents may negotiate a reduced commission in order to under bid other agents and win the listing. However, this could backfire for the homeowner.

Watch this video to learn where your money is going when you list your home with a REALTOR, and why using a discount agent is not in your best interest.

Only $200k for this adorable🤩#BayVillage condo!! HOA reasonable at $355/mo. (Not my listing.)

Visit the listing here!

Cleveland, city, seat (1810) of Cuyahoga county, northeastern Ohio, U.S. It is a major St. Lawrence Seaway port on the southern shore of Lake Erie, at the mouth of the Cuyahoga River. Greater Cleveland sprawls along the lake for about 100 miles (160 km) and runs more than 40 miles (65 km) inland, encompassing Cuyahoga, Lake, Geauga, and Medina counties and more than 70 suburban communities, including Lakewood, Parma, Shaker Heights, Cleveland Heights, East Cleveland, Euclid, Garfield Heights, and Rocky River.

Most of the city lies on a plain that rises 60 to 80 feet (18 to 25 metres) above the lake and is divided by the narrow valley of the Cuyahoga, locally known as the Flats. Lake Erie moderates the city’s climate, keeping temperatures generally cooler in summer and warmer in winter and occasionally causing heavy “lake effect” winter snows. Inc. city, 1836. Area city, 82 square miles (212 square km). Pop. (2010) 396,815; Cleveland-Elyria-Mentor Metro Area, 2,077,240; (2020) 372,624; Cleveland-Elyria Metro Area, 2,088,251.

History

Erie Indians in the region were driven out by the Iroquois in the 17th century. The French established a trading post in the vicinity in the mid-18th century. In 1786, three years after the American Revolution, when the Ohio country was opened for settlement, Connecticut laid claim to a vast area of land (the Western Reserve) in northeastern Ohio. Moses Cleaveland, from the Connecticut Land Company, arrived with surveyors at the mouth of the Cuyahoga in July 1796 to map the area. He founded and laid out the town of Cleaveland. (In 1832 an a in Cleaveland was dropped to shorten a newspaper’s masthead.)

The city’s growth was slow until 1832, when the Ohio and Erie Canal (begun in 1825 to connect Lake Erie and the Ohio River) was completed. In the 1850s railroads increased the community’s commercial and industrial activity. When St. Marys Falls Canal (Soo Canal) between Lakes Superior and Huron was opened in 1855, Cleveland became Lake Erie’s transshipment point for lumber, copper and iron ore, and rail shipments of coal and farm produce. The American Civil War provided the initial stimulus for iron and steel processing, metals fabrication, oil refining (John D. Rockefeller founded Standard Oil there), and chemical manufacturing. Suburban trains were developed at the end of the 19th century. By the 1930s Cleveland had the appearance of a modern metropolis, with main roads converging on its Public Square, which was dominated by the 708-foot (216-metre) Terminal Tower. Rapid-transit lines now extend to Shaker Heights and East Cleveland (east) and to the Cleveland Hopkins International Airport (southwest).

Cleveland’s economy, hard hit by the Great Depression of the 1930s, experienced renewed growth during World War II. However, the city’s industrial mainstays subsequently declined, a decline matched by a precipitous drop in population; in 2000 Cleveland’s population was only about half of what it had been in the peak year of 1950, when it reached 915,000. Tens of thousands (mainly those of European ancestry) moved to the suburbs, but many others left the area as jobs disappeared. Economic hardship especially affected the city’s large and less-mobile African American community, which by 2000 constituted more than half of the city’s population. In 1966 Cleveland’s Hough district was the scene of violent racial disorders. Municipal government faced mounting budgetary problems, capped by default on bank loans in the late 1970s. In addition, environmental pollution became severe, a condition infamously highlighted by a June 1969 fire on the Cuyahoga River caused by floating chemical wastes.

In 1967 Carl Stokes was elected mayor of Cleveland, the first African American to win such office in a major U.S. city. Under Stokes and his successors (white and black), the city undertook a long revitalization process. Beginning in the 1960s, much of the downtown area was rebuilt, and since the 1980s steps have been taken to improve the city’s environment. Notable effort has been directed at cleaning up the Cuyahoga. The downtown skyline, long dominated by Terminal Tower (1930), was dramatically altered by the addition of BP Tower (1985) and the 63-story Key Tower (1991), at the time of its completion the tallest building between New York City and Chicago.

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Couple of sectors of the economy are as conscious rates of interest as the property market. During 2022, eight successive rate increases aimed at offsetting high inflation sent tremblings across the market– and are still at the centre of the fall in Australian house prices.Overall, national real estate worths fell 3.2 percent over the year to November.However, CoreLogic’s head of research, Eliza Owen, says the rate of decrease has been slowing on a “broad basis because September”.” While this may be viewed as a positive by some, there is still risk of the decrease re-accelerating in the year ahead,”she said. The fall in nationwide worths was largely driven by capital city residence values dropping 5.2 percent, while regional home worths rose 3.3 per cent over the very same period, CoreLogic figures show.Which Australian residential areas taped greatest falls in 2022? Residential areas in Sydney’s City and Inner-South, Northern beaches and Eastern residential areas dominated 2022’s list for the largest falls in home and system values throughout the capital cities, according to CoreLogic.Narrabeen, Surry Hills and Redfern houses taped the biggest falls in worth over the year, down more than 25 percent, while system worths in Centennial Park and Mona Vale fell by 23.1 percent and 20.8 percent, respectively.Which Australian residential areas recorded greatest development in 2022? On the other hand, Adelaide’s durability was consistent over 2022. Adelaide residential areas Davoren Park(up 34.7 percent)and Seacliff Park(up 41.4 percent )published the biggest growth for houses strength to rates of interest rises, Ms Owen said, while the more-expensive section tended to see sharper declines.What about local markets? Regional markets were more resistant to market conditions, boosted by minimal supply, strong need– compared to pre-pandemic levels– and relative affordability.However, local demand has slowed as interest rates have risen.While a number of local suburban areas posted big yearly development, such as home worths in the New South Wales town of Bingara (up 36.2 percent)and system worths in Laguna Quays, Queensland (up 30.9 percent), the majority of regional markets have moved past their cyclical peak, and are now tape-recording decreasing values.Popular way of life markets such as the Southern Highlands, Shoalhaven and the Sunshine Coast have taped a few of the strongest peak-to-trough declines in value.While Ms Owen says it is not likely these markets will fall listed below the levels tape-recorded at the start of COVID-19, due to the fact that houses across these regions are still, on average, 38 percent higher than where they were at the start of the pandemic.What will house costs carry out in 2023? Well, there’s no crystal ball but the answer mostly depends on rates of interest. Economic expert Maree Kilroy anticipates additional rate hikes in early 2023, with the cash rate peaking at 3.6 per cent by March next year.”Rates will start to fall once again in 2024 and settle at 2.6 percent by mid-2025,”Ms Kilroy, a BIS Oxford Economics senior economic expert said.”We expect the across the country all-dwelling cost to fall 11.5 percent peak-to-trough. The speed of price decreases is expected to slow from here, with the marketplace bottoming around September quarter 2023.

“Among Australia’s most costly sales in 2022? 38A Wentworth Roadway, Vaucluse NSW cost $62.75 million Australia’s many budget friendly suburban area? Kambalda East in Western Australia with a median value of$ 118,525 SQM Research director Louis Christopher also anticipates more rate rises from the Reserve Bank of Australia(RBA)in the early months of 2023.” We anticipate more rate increases, starting with their February conference. Nevertheless, the expectation is the RBA won’t take the cash rate above 4 percent,” Mr Christopher said.Provided the cash rate does not tip over 4 percent, Mr Christopher says he prepares for a real estate market bottom and recovery in late 2023. Nevertheless, the degree of theflooring in values might be further weighed down by home mortgage serviceability dangers, with the majority of outstanding set loan terms secured through the pandemic to end by the end of next year

Where did we end the year?The approximated total worth of property avoided $9.6 trillion in December 2021 to$ 9.4 trillion in November 2022, while the approximated yearly sales fell 13.3 percent, compared to a year earlier, with roughly 535,000 homes sold across Australia.In the RBA board’s last conference for 2022, the money rate was lifted by 0.25 of a portion point, taking the cash rate to 3.1 per cent, and variable interest rates to above 6 per cent.The reserve bank will take a break throughout January. Its next rates meeting is set up for Tuesday, February 7.

Valuing God, family, and then business, Keller Williams embraces all faiths, backgrounds, and cultures. The KW family of associates experiences a positive influence from their workplace environment, which has shaped the existing culture. Their mission revolves around constructing careers worth having, owning businesses worth owning, living lives worth living, giving experiences worth giving, and leaving legacies worth leaving. The influence of KW extends beyond national borders, reaching 53 other countries worldwide.

Year after year, Keller Williams maintains its dominance in the real estate industry, holding the top position locally in the Austin area and nationally in terms of agent count, units, and volume. In 2020 alone, Keller Williams associates successfully closed over 1.26 million transactions, generating a remarkable sales volume of over $414 billion. With over 12% of the entire Austin real estate market share, KW stands as the leading real estate company in the area. Furthermore, it claims the top spot as the number one luxury broker representing sales exceeding $1 million.

The company takes pride in providing its agents with exclusive technology, coaching, tools, and training, aimed at facilitating their business growth and success in the real estate industry. Backed by a team of training experts and award-winning coaching programs, Keller Williams ensures that its agents remain at the forefront of their profession. The comprehensive suite of technology and consumer tools offered by KW harmoniously work together to deliver smarter business solutions for agents while providing seamless experiences for their clients.

This report will examine the top seven trends set to impact the real estate industry in 2023 and beyond.

One of the key underlying drivers for these trends is a relocation from big cities to the suburbs — a development that was occurring before 2020. But was accelerated by the COVID-19 pandemic.

But there are several other important changes in the real estate space to keep an eye on over the next 18-24 months.

Let’s get right into the trends:

1. House hunting goes digital

Searches for “digital transformation” are up 223% over the last 5 years.

The pandemic accelerated digitization across all sectors.

And the real estate market is no exception.

Due to the pandemic and the competitive housing market in 2020, some buyers purchased their homes without stepping foot inside first.

Many were able to do virtually tour property due to virtual capabilities, such as:

• 3D Tours
• Drone videos
• Virtual staging

Searches for “virtual staging” are up 23% over the past 5 years.

Online searches for “virtual staging”, which were on the rise pre-pandemic, shot up in 2020, though the demand will likely decline somewhat after the pandemic.

Online real estate companies like Zillow, allowed home sellers to browse listings, get in touch with real estate agents, and research mortgage options during the pandemic.

Zillow and some similar companies also provide 3D home tour options.

Zillow remains a popular online real estate database, as evidenced by rising searches for “Zillow” over the past 10 years (51%).

The home tour is not the only aspect of home buying that is going digital.

Getting a mortgage can be done online now too.

Online searches for “Better Mortgage”, an online mortgage lender, shot up 46% over the last 5 years.

Millennials, who are notorious for their reliance on social media, are also turning to technology to learn more about their new neighborhoods.

Websites like Nextdoor allow residents of a particular area to stay in touch with other locals and keep up with neighborhood events.

Overall, searches for “Nextdoor”, the social networking website for neighbors, have increased 186% in 10 years.

2. People move from cities to the suburbs

The COVID-19 pandemic has fueled migration from major cities to the suburbs.

The biggest metro areas, like New York, San Francisco, and Washington, DC, are likely to rebound once the US is firmly on the other side of the pandemic.

But the trend of opting out of big city living may persist for the next 3-5 years.

Many industry experts predict that the pandemic-fueled shift to the suburbs will remain through 2025.

The two underlying reasons for the shift are necessity and choice.

Those who cannot afford to stay are moving out of necessity.

While the wealthy are relocating by choice.

Those who have lost their jobs and can’t afford big city prices anymore are moving in search of more affordable housing options.

Last but not least, the suburbs are an attractive destination due to lower taxes and cheaper housing and rent prices.

Internet searches for “eviction” increased by 41% in the last 15 years, in part highlighting the concerns of lower-income homeowners and renters during the COVID-19 pandemic.

Some who are moving out of big cities are looking for suburbs that retain some of the big city feel, areas that urban planner, Daniel Parolek, refers to as “middle neighborhoods”.

While the predominant feature of “middle neighborhoods” is the single-family home, these areas also retain some of the conveniences of a big city, such as multifamily housing options, good public transportation, high walkability scores, shopping, and restaurants.

According to Parolek, “middle neighborhoods” are difficult to construct from a regulations perspective, but perhaps this will start to change in the future as demand for such areas increases.

The shift from cities to suburbs is also driving some of the other real estate trends on this list.

Such as the increasing popularity of the Sun Belt, rising median home prices, and an overall housing shortage.

3. The sun belt’s popularity continues to rise

As Americans shift out of big cities, one destination they are moving to is the Sun Belt.

The pandemic reinforced the increasing popularity of the Sun Belt, which is expected to persist for the foreseeable future.

The Sun Belt is the swath of the US that stretches from California to North Carolina and encompasses 18 southern states in between.

Approximately 75% of the country’s population growth in the past 10 years has been concentrated in the Sun Belt states.

In addition to its appeal to the retired set, the region is also becoming increasingly more attractive to younger professionals due to lower taxes and more affordable housing prices and rent.

Additionally, even the biggest Sun Belt cities offer more space compared to the top US metro areas such as New York.

The growing relocation and rising population in the Sun Belt have bolstered real estate markets in the region.

The growth has not been limited to single-family homes but has also translated to multifamily housing and commercial real estate.

Two major Sun Belt metro areas, Dallas and Tampa are ranked in the top ten US cities with the most real estate potential.

However, it is Austin that was anticipated to see the most real estate growth in the US in 2021, followed closely by Phoenix and Nashville, according to Zillow.

On the other hand, major metropolitan areas, like New York, Philadelphia, and San Francisco were among the worst real estate markets in the country in 2021.

4. Single-family housing demand creates shortages

The migration from cities to suburbs is resulting in growing buyer demand for single-family homes.

Single-family homes located in the suburbs are highly coveted.

Realtors projected that home sales would rise another 10% in 2021, which will bring them to the highest level since 2006.

Searches for single-family homes were at their highest rate in four years in 2020, according to Redfin’s chief economist.

According to PricewaterhouseCoopers, the demand for single-family homes is being driven by several factors, including:

• Low interest rates
• The growing importance of the home due to the quarantine, social distancing, and telework
• Strong housing trends pre-pandemic

The pandemic-related demand for houses is compounded by another coinciding trend: Millennials entering the home ownership phase of their lives.

Millennials looking to purchase their first house or start a family are also spurring suburban growth.

Online searches for “home loans” were on the rise in 2020 but have dropped off recently.

As a result, single-family housing inventory is the lowest in approximately 40 years.

As of September 2020, there were approximately 830,000 homes on the market in the US, down 39% from September 2019.

The average time a home was listed on the market was 54 days, down 18% from September 2019.

One real estate agent in New Jersey has compared buying a house in New Jersey suburbs outside of New York City as a “blood sport” due to the high competition among buyers.

While these conditions persisted through 2021, it is unclear how long they will last beyond that.

The market is projected to eventually stabilize.

And the pace of new construction probably will catch up with the increased demand.

The housing shortage coupled with rising housing prices has been a boon for management and construction companies.

Housing construction of both single-family and multifamily homes is on the rise and reached the highest level since 2006 in 2020.

5. Home prices continue to rise

The current real estate trends are highly interconnected.

Due to the increased demand for single-family homes and dwindling supply, prices for single-family homes shot up in 2020 and are expected to remain high in 2023 and beyond.

Shortly after the start of the pandemic, the housing market temporarily reversed course, as prices dropped and those looking to sell their homes reevaluated that decision.

However, after a couple of months, prices went back up again.

And the seller’s market was stronger than ever going into 2021.

The median list price for a single-family home in 2020 reached $350,000 in September 2020, an 11% increase from September 2019.

Single-family home prices are on a rapid rise.

High prices are not deterring home buyers.

Some buyers are willing to pay substantially above the asking price to secure their purchase.

Rising house prices have pushed up the home equities of current homeowners.

Home equity is the overall home value minus the amount owed on it.

So, as market value increases, home equity does too.

Home equity rose by 6.6%, or an average of $10,000 per home in 2020.

Online searches for “home equity” have increased over the last decade.

6. Mortgage rates drop

Home ownership was spurred by record-low mortgage rates in 2020.

According to some sources, mortgage rates hit a 50-year low in 2020.

Mortgage rates were already on the decline since they reached a peak of 4.94% in 2018.

But at the beginning of January 2021, mortgage rates hit a record low of 2.65%.

This caused a spike in mortgage applications, which reached a 10-month high in the beginning of 2021.

At the end of January 2021, the Federal Reserve decided to keep interest rates close to zero due to the economic impacts of the pandemic.

Online searches for “mortgage rates” saw a huge spike in the first half of 2020 but leveled out in the second half of the year.

A mortgage refinancing spike coincided with the spike in online mortgage rate searches in the first half of 2020.

Another spike occurred in January 2021, when refinancing activity was 93% higher than in January 2020.

7. Rental property market declines

Partly due to the shift of people from cities to suburbs, the rental market for both residential and commercial properties in big cities was on the decline in 2020.

Demand for rental properties will continue to decline in the biggest cities as people who can afford it look to buy a house, and those who cannot, look for other alternatives to save money or fall behind on their rent.

The number of young professionals who have given up their apartments and moved back in with their parents jumped last year.

According to Pew Research, 2020 was the first time since the Great Depression that the majority of young adults 18-29 lived with their parents.

The migration out of big cities has resulted in the highest apartment vacancy rate since 2010 and declining rental prices.

While rental vacancies are increasing in major metropolitan areas, demand for rental properties is actually going up in mid-size and smaller cities around the country as the demand for homes in these areas outpaces the supply.

The downturn in the rental market is creating real estate investment opportunities.

Investors can purchase struggling rental properties now in anticipation of renters returning to big cities when the pandemic ends.

Investors can also take advantage of commercial properties that went vacant in 2020, such as hotels and retail buildings, and repurpose them into housing units.

Online searches for “real estate investing” have increased over the past 5 years.

Conclusion

That wraps up our list of important real estate trends happening right now.

As more people move to the suburbs and look to purchase a home, single-family housing prices are expected to stay high and supply low.

Low mortgage rates will continue to drive the demand for homes.

In the meantime, the rental property market in large cities will remain in decline, which will provide opportunities for real estate investors planning for a post-pandemic recovery of city life.

Signs of their reversal include a rise in mortgage rates and an increase in housing supply as construction catches up with demand.

So it will be fascinating to see which of these trends were temporary due to COVID-19. Or are legitimate, long-term trends that are likely to persist over time.