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Montenegro’s property paradox: ancient ruins or futuristic villas, what’s the real deal?

Montenegro: europe’s best-kept secret

Nestled in the heart of the Adriatic, Montenegro emerges as Europe’s best-kept secret. This Balkan jewel, often overshadowed by its more renowned neighbors, has quietly become a captivating destination for savvy investors. Montenegro’s allure lies in its diverse landscape, from sun-kissed beaches along the Mediterranean coastline to rugged mountain ranges that inspire awe. It’s a place where centuries-old traditions meet modern opportunities, creating a unique blend that’s catching the attention of those in search of both natural beauty and investment potential.

Real estate in Montenegro: a Mediterranean dream come true

The world is waking up to the charms of real estate in Montenegro, where a Mediterranean dream is coming to life. This is not just about owning property; it’s about securing a piece of a bright future. With a strategic location, political stability, and an array of investment possibilities, Montenegro’s real estate market offers something for every investor’s appetite. Whether you yearn for a seaside villa in Montenegro, a mountain retreat, or an urban oasis, country is the canvas upon which your real estate aspirations can be painted. In the paragraphs that follow, we’ll embark on a journey through Montenegro’s real estate landscape, uncovering the secrets that make this Adriatic gem an investor’s paradise.

Montenegro’s dazzling duo: the spellbinding charms of Perast and Podgorica!

Hey there, globe-trotters and dream-chasers! Ready to uncover two of Montenegro’s most scintillating spots? If you’ve ever toyed with the idea of swapping skyscrapers for scenic vistas, then let’s zoom into the wonders of Perast and Podgorica. By the end of our journey, you might just be scribbling “Move to Montenegro” on your bucket list!

Perast: a time capsule by the sea

Imagine waking up to a view where baroque palaces flirt with the shimmering Adriatic. Welcome to Perast, folks! This tiny town is like a postcard sprung to life. Nestled in the Bay of Kotor, Perast is where time seems to have hit the pause button.

But here’s the juicy bit: While Perast oozes old-world charm, it’s far from sleepy. Hop on a boat to the iconic Our Lady of the Rocks island, or simply lounge at a seafront cafe, sipping on local wine and pinching yourself because, yes, this place is real!

Podgorica: the pulse of Montenegro

Shift gears, and let’s plunge into the heart of Montenegro: Podgorica. This capital city is a kaleidoscope of experiences. From Ottoman relics to futuristic bridges, Podgorica is where history and modernity play a high-stakes game of chess.

But wait, there’s a twist! Beyond the urban hustle lies a world of serene rivers, vineyards, and canyons. Whether you’re a culture hound or an adrenaline junkie, Podgorica’s got a surprise up its sleeve just for you.

Montenegro’s riverfront residences: where waters whisper tales

Let’s drift away from the coast and follow the gentle flow of Montenegro’s rivers. Along these meandering waterways, you’ll find properties that offer a different kind of waterfront living. It’s a world where mornings are serenaded by birdsong, and evenings are graced by reflections of the setting sun on tranquil waters. Riverfront homes in Montenegro are gaining traction among those who crave a peaceful retreat, yet don’t want to stray too far from urban amenities. And here’s a nugget for the savvy investor: as coastal properties soar in price, these riverfront gems offer incredible value, with the promise of appreciation. So, if the idea of sipping coffee on a riverside terrace, watching boats glide by, tickles your fancy, it might be time to cast your net into Montenegro’s riverfront real estate.

Montenegro’s artistic abodes: where architecture meets imagination

Step into Montenegro’s architectural landscape, and you’re in for a treat. From Baroque facades in Perast to modernist marvels in Budva, the country is a canvas of artistic expression. But here’s where it gets interesting: many of these architectural gems are up for grabs. Properties that are not just homes, but works of art. Spaces that inspire, with arches, mosaics, and avant-garde designs. And for those with a creative streak, the opportunity is twofold: live in a masterpiece and potentially transform it into a lucrative venture, be it a designer B&B, an art gallery, or a chic urban retreat. Investing in Montenegro’s artistic abodes is more than a financial decision; it’s a leap into a world where architecture and imagination dance in harmony. If you’ve got an eye for design and a heart that beats for beauty, Montenegro’s architectural wonders await your embrace.

Montenegro mystique: the real estate plot thickens!

Hold onto your hats, property trailblazers! Ever pondered where Europe’s next big real estate wave is crashing? Montenegro’s unfolding a property narrative that’s as riveting as a page-turner mystery. Tucked between the Adriatic’s sparkle and the drama of towering peaks, Montenegro isn’t just a backdrop for epic tales—it’s an investor’s plot twist with a promise of grand returns.

Here’s where the story gets gripping: Montenegro is on the precipice of a real estate saga. With its prime spot in the Mediterranean theater, a tourism crescendo that’s building by the minute, and accolades from big players like NATO and the EU, it’s the scene everyone’s watching. And the price tags? They’re in the “grab-now-or-gasp-later” realm. So, if you’re looking to pen your own success story in real estate, Montenegro’s the setting. Dive into this narrative, and be the protagonist who saw the climax coming!

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Real Estate

Why Having a Real Estate Broker Can Change Your Buying Experience

Buying a home is one of the most significant investments that a person can make in their lifetime. It involves a complex process that can be daunting for many, especially for first-time home buyers. From finding the perfect property to negotiating the price and handling all the legal paperwork, the process can be overwhelming and time-consuming. That’s where the role of a real estate broker comes in. A real estate broker is a licensed professional who acts as an intermediary between buyers and sellers in real estate transactions. They possess extensive knowledge and experience in the industry, making them an invaluable asset to have when buying a property.

Expert guidance throughout the process.

Expert guidance throughout the process is one of the key reasons why having a real estate broker can change your buying experience. From the moment you start your home search to the final closing, a real estate broker will be there to provide you with the necessary guidance and support. They have a deep understanding of the local market and can provide valuable insights into the neighborhoods, schools, amenities, and property values.

When it comes to finding the right property, a courtier immobilier can save you time and effort by identifying suitable options that align with your needs and preferences. They have access to an extensive network of listings and can narrow down the choices based on your budget, location, and desired features. With their expertise, they can help you navigate through the overwhelming number of listings and provide you with a shortlist of properties that meet your criteria.

Access to insider market knowledge.

One of the key advantages of having a real estate broker is their access to insider market knowledge. Real estate brokers have their fingers on the pulse of the local real estate market. They stay updated on current market trends, property values, and upcoming developments. This knowledge gives them a unique advantage when it comes to identifying suitable properties that meet your specific requirements.

Negotiating power for better deals.

One of the key benefits of having a real estate broker by your side when buying a property is their ability to negotiate powerfully on your behalf. Negotiating is a crucial part of the buying process, as it allows you to secure the best possible deal for your investment. Real estate brokers have a deep understanding of the local market, including current trends, pricing, and comparable properties. This knowledge empowers them to assess the true value of a property and negotiate the price accordingly.

Working with a real estate broker can greatly enhance and improve your buying experience. From their expertise and knowledge of the market to their negotiation skills and ability to navigate complex processes, a real estate broker can provide valuable guidance and support throughout your home buying journey. So if you are considering purchasing a property, don’t hesitate to reach out to a trusted and experienced broker to help you make the best decision for your future. The investment in their services will undoubtedly pay off in the long run.

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Real Estate

Planning to Buy a Luxury Real Estate? – Key Things to Consider

Embarking on the journey to acquire a slice of luxury real estate can be an exciting yet daunting endeavor. You’re not just buying a property; you’re investing in a lifestyle adorned with elegance and exclusivity. However, luxury real estate comes with its unique nuances and demands an understanding of key aspects that set it apart from conventional real estate. So, are you ready to delve into the world of fine living? Here are some crucial factors to consider when planning to buy luxury real estate.

Understand the Search Process:

Luxury real estate can often be unlisted to protect the seller’s privacy. These properties are often found through personal connections or specialist real estate brokers rather than traditional online platforms. As such, it’s advisable to hire an experienced real estate broker familiar with the luxury market. They will have insider knowledge and access to the hidden gems not readily available on the public market.

Visit the Property:

While photos and virtual tours can offer valuable insights, they can’t replace the experience of an actual visit. Luxury homes often contain intricate details and quality that can only be appreciated in person. Walk around the neighborhood, appreciate the view, listen to the sounds, and ensure the home offers the privacy and quality of life you’re seeking. Take your time to view the luxury homes for sale on the market.

Prioritize Location and Lifestyle:

The location of your luxury home plays a significant role in its value, both present and future. It’s essential to consider the quality of the neighborhood, proximity to amenities, exclusivity, and the potential for future growth in the area. It’s not just about the house; it’s also about the lifestyle that comes with it. Whether it’s beachfront serenity, golf-course living, or a mountain vista, ensure it aligns with your ideal lifestyle.

Evaluate the Home’s Amenities:

One key characteristic of luxury real estate is the unique and high-end amenities they offer. Infinity pools, state-of-the-art kitchens, spa bathrooms, home theaters, spacious wine cellars, or even a helipad – luxury means different things to different people. Identify the amenities that are important to you and evaluate the property based on these features.

Conduct a Thorough Home Inspection:

Don’t let the extravagance of luxury homes deter you from performing a thorough home inspection. A professional home inspector can highlight potential issues that could become costly repairs in the future. They will check the structure, roofing, HVAC systems, and more to ensure you know exactly what you’re buying.

Think About Resale Value:

Even if you plan to live in the house for many years, it’s important to think about its potential resale value. Luxury doesn’t follow the same market trends as regular real estate, so it’s crucial to consider aspects that will likely appeal to future buyers. These might include the home’s condition, location, size, style, and any unique amenities it offers.

Secure Your Finances:

The financial aspect of purchasing luxury real estate can be different from standard property transactions. Lenders may require extensive financial documentation, and some may even demand larger down payments. Therefore, it’s essential to have your finances in order and to work with a financial advisor or a lending institution familiar with luxury real estate.

Conclusion

In conclusion, buying a luxury home is a significant decision and one that should not be taken lightly. These properties come with their own set of rules and expectations, and it’s important to familiarize yourself with them before diving in. From finding the right broker and evaluating the property and amenities, to securing your finances and considering the future resale value, every step plays a critical role in securing your dream luxury home. Remember, it’s not just a home; it’s a lifestyle. So make sure the luxury home you choose aligns not only with your financial goals but also with your lifestyle preferences and aspirations. Here’s to your new journey in the world of luxury living!

FRENCH TAGS

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Real Estate

The latest Trending Closing Real Estate Software

With the advancement in technology, there are many closing real estate soft wares available in the market today. The real estate attorneys, settlement agents, and even the paralegal now have access to several soft wares. The attorneys use the software to authenticate information, gather signatures and even notarize documents. The closing processes and transactions can be streamlined much easier. The buying organization needs to evaluate the software’s functionality and capability because the soft wares are not created equally. This makes them not suitable for all tasks.

Hereby are some of the examples of closing real estate software.

1.   SoftPro

The SoftPro software provides solutions and products which make the real estate closing process much easier. The software provides the required calculations and documents. The software in most instances is useful in closing and the title industry. This means that even though their products are superior in terms of quality, easy to use, and comprehensive, they are developed for companies and individuals who do closings on daily basis. The huge volume capacity of SoftPro and higher pricing is as a result of its capability and advanced features. Since the real estate attorneys handle closing in a year, they do not require all the options and abilities which the software provides. The software has innumerable modules which need to be bought individually. This in turn provides the users with a wide variety of customization options.

2.   RamQuest

RamQuest is another type of closing solution. It is also highly customizable software. The software is commonly used by settlement agents and companies. It is comprehensive to handle and contains the required calculations and documents. It contains a lot of integrations and features which are not required by most real estate attorneys for closing solutions.

3.   Easysoft

The Easysoft software is more beneficial to small and real estate law firms. The products are developed mostly to cater to the attorney’s needs but not the title companies. It is of great help to the attorney who runs other several businesses and offers the closing solutions. The software also offers editing and circuit diagram input. The user can display the format in the desired format. It also has integrated offline simulation which allows the firm to test a circuit diagram before commissioning is done. It can also offer to support the users in designing, programming and even defining constraints for all the intelligent relays. The software can provide automation of the features they need. The system is easy to use since it is available on the internet. One can access it even from mobile devices. The software contains four programming languages which include: ladder diagram (LD), Easy programming language-event-driven programming (EDP), a Function block diagram (FBD), and structured text (ST).

The user needs to confirm whether the type of software is easy to implement. This makes it easier to integrate it with the existing systems. Security features of the software should also be considered to curb cybercrimes. The scammers and fraudsters may use you for illegal purposes when not properly secured.

Wrapping up

In conclusion, there are many types of closing real estate software available in the market today. The above article illustrates some of the examples a company may use for closing solutions. The company or firm should also consider the functionality and capacity of the software before installing it.

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Real Estate

3 simplest ways to add diversity to your real estate investment portfolio

The real estate business is for the rich and famous, right? Wrong! Interest, research, good networks, and effort are all it takes to delve into the real estate investment world, at least at the beginning. The likes of Donald Bren, Stefan Soloviev, and Sam Zell, just to name a few, all began from somewhere.

Granted, you have been fed the lie that unless you’re rich, real estate isn’t for you. Watching the market makes this lie seem real. But what if we redefine real estate investment? Moving away from the daydreams of buying houses in California to realistically evaluating what our local real estate markets really need and if you can fill an aspect of the existing gaps. Business is all about providing the right solutions!

1. Rentals

Feels like the most obvious, yet it’s the most misunderstood real estate concept out there. You don’t have to own a property to rent it out. “Huh?” I see your confusion, but go with me for a minute.

Renting or letting can be managed by anyone. Think agents or real estate management companies. Depending on how your local market works, you can explore providing agency services to building owners with three or fewer properties.

2. Agriculture

Real estate investment means making money from anything that directly links to land as capital. This includes buildings built on land, and also plants grown on land. So how is agriculture a real estate investment? Agriculture is one way you can use your piece of land to make some money.

Large-scale agriculture is expensive. You may not be interested in fully immersing your time and resources in it unless it’s something you have always wanted to do. But did you know you could lease your land out to agricultural firms and other people in the industry looking to expand their operations without needing to purchase land? Leasing your idle land is a great way of making passive income in real estate.

3. Flipping

Unlike the first two that require minimal input, moneywise at least, flipping needs you to put in more to get out more. It is becoming one of the most popular real estate investment trends in the US today.

If you have significant savings, look for a house you can do a fixer-upper on and then resale for a reasonable profit and keep going. Besides the initial investment required, research is also essential. Also, make sure you’ve done your due diligence before putting your money in a fixer-upper. You don’t want to be stuck with a house that requires extensive renovations and repairs before you can make a profit.

You need to educate yourself, learn how to identify upcoming markets, and negotiate purchases and resales. Despite the challenges involved in flipping properties, this is a great way to maximize your real estate investment profits.

Conclusion

Real estate investments offer robust long-term and short-term returns. They can be risky and sometimes costly, but that shouldn’t stop you from diversification. Put in the initial work and you’ll soon be smiling all the way to the bank.

Searching for trusted real estate agents in San Diego? Look no further than mypremierhomes.com. Our team of dedicated professionals will assist you in finding the perfect property or selling your home at the best price.

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Real Estate

Why Hiring A Local Moving Company Is Better

Preparing and managing a move is among the most stressful experiences. There are many variables to consider, especially as you’re juggling between your busy schedule and the move. That’s among the reasons people turn to professional moving companies. Professional Jersey City moving company offers a lot, translating to safe, cost-effective, fast, and efficient process. As you look for a moving company, going local is recommended. That out-of-state service might be tempting, but they can’t match the experience you’ll realize by working with a local Jersey City moving company. Among the top reason to hire a local mover includes;

Local knowledge

Expert knowledge of the local region, including the roadways, translates to efficient move. Bridge heights, construction works, and other common traffic considerations can affect the move. With a local company, such frustrations won’t be a part of your moving process. They know the best routes, avoiding heavy traffic and all the concerns that could waste valuable time.

On-site estimates

You’ve provided your details and got an online or phone estimate. After the move, the bill seems significantly higher than the estimate. That’s surprising but not uncommon; it happens as the mover didn’t have as many details to provide an accurate estimate. This won’t happen with a local company. The service will send an expert to your premises. With the on-site estimate, you’ll get an accurate estimate, meaning the final bill won’t deviate as much, saving you from the frustrations of extra expense you didn’t have in mind.

Convenience

A local Jersey City moving company can anticipate your needs. Whether a business or home, they know the common moving needs. From the trucks to the packaging materials, they are efficient as they’ll be well prepared to handle all your moving needs. This offers the needed convenience as you won’t have to make multiple trips, saving you from frustrations that can make a move more stressful.

Quality services

Bad word travels quite fast, an aspect that businesses understand. They strive to maintain a positive reputation, especially as the locals are a huge part of their business. As such, a local company will go an extra step to ensure that you enjoy their services. You are assured that your valuables will be professionally handled. You won’t have to worry about lost or damaged valuables, translating to a smooth moving experience.

Competitive prices

A local company, unlike an out-of-state service, costs a lot less. They won’t incur high costs such as long transit to get to your property. Moreover, as they understand the routes, they’ll efficiently manage the move, making it faster and less costly. What this means to you is that you’ll save more money. Moreover, as the business wants to keep you on their good side, you’ll enjoy competitive rates, making it easier to finance the moving endeavors.

Hiring a local Jersey City moving company makes your relocation experience pleasant. Nonetheless, don’t just pick the first service that pops on your search. You still have to ensure they are licensed, insured, experienced, and have the right tools for the job.

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Real Estate

Real Estate Agent Skills and Qualities to Acquire

Top real estate agents have both hard and soft skills. Besides the requisite real estate qualifications and expertise, they also have social skills that in most cases are responsible for closed deals. If you’re considering becoming a real estate agent, here are some skills and qualities that you’ll want to hone to create a successful business.

Local Knowledge

To be a well-heeled, go-to real estate agent, you must know your local jurisdiction like the back of your hand. Knowledge of your area of operation sets you apart from the rest of the agents operating in the same location. You need to know the different neighborhoods and communities living in your area. Clients like dealing with someone who can answer whatever question they have with as much detail as possible.

A good grasp of the local knowledge gives you the added advantage of understanding the regulations and rules in your area. You will also have a good understanding of the current value of a property. Being able to research different locations and then provide potential clients with the best properties in your area will definitely set you apart. So, take time to get familiar with your area of operation.

More: The Difference Between a Broker and an Agent

Communication Skills

Communication is one of the most important real estate agent skills. You need to talk to people, and in a way that makes them feel valued and respected. Knowing how to communicate the best interests of your clients makes them feel not only valued but respected.

Clients also love to work with an agent who communicates clearly and succinctly, and in a language they understand. They need an agent who can clearly explain the intricate details of a contract and negotiate the best deal for them. Finally, you should be able to close a deal on behalf of your clients successfully. Nothing makes a client feel worse than finding they didn’t get the best deal because you didn’t represent them well.

 Integrity

At the core of trust is integrity, and it speaks louder than words. Integrity is not only what you do when no one is looking, but it’s also how you hold together when everyone is looking; when all eyes are on you. Having a record that can withstand the closest scrutiny makes you come off as a person that can be trusted. If you claim to be the best in what you do, you must be not only ready to back this up, but also sound convincing and honest.

 Teaching Skills

To a client, you are the expert. You understand the industry well enough to teach them what they need to know. Some of the elements of the process may seem obvious and mundane to you, but they may not be so obvious to some of your clients, especially those new to real estate. Being patient enough to teach clients what they need to know and answer their questions as exhaustively and accurately as you can put you in a class of your own.

More: 7 Reasons Why Joining a Real Estate team is Beneficial

 Punctuality

Punctuality is a virtue and one of the more important real estate agent skills. No one likes waiting. The first great impression you can make on a client is not to keep them waiting. Always make sure you are on time and never keep a client waiting. Your clients are busy people with huge demands on their time. When meeting with a client or showing them a property, how you manage your time is important. Excuses won’t impress, whether genuine or not. If you set up a meeting with a client, be on time.

Negotiation Skills

At some point, you will have to help a client get the best from a deal on the table. For this, you need expert negotiation skills. Learn to say no without feeling cornered. Don’t be pushed to say ‘yes’ to a deal that does not reflect the best interests of your client. You also need to help your clients get better at negotiating. It must be a team effort. To negotiate well, establish both the best and worst-case scenarios and prime your client for both.

 Post by John Kinnunen, eXp Realty leader. For more information about becoming and agent and joining eXp Realty, Contact John.

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Real Estate

Settling for “market” rental rates might not be a good idea – think “premium” rates instead

Looking at how heated today’s rental market is, you might think that working with any property manager will get your rental units prevailing market rates. However, a more seasoned Baltimore rental property management company looks beyond just market rates. Because the rental market is so competitive today, it takes a special blend of skills, talent, and experience to look beyond the market, and command premium rent.

What Matters Most

What matters is to find a rental management company in Baltimore that’s focused on providing the best property management services in Maryland. Landlords and rental property investors and owners can then tap into their experience and expertise to help clients and tenants feel comfortable every single day.

And to do that, you’ll need a partner who:

  • Has extensive experience of the local markets they serve
  • Brings more than just conventional property management to the table, but specializes in rental property management
  • Embraces cutting-edge technology to deliver seamless services to a broad set of stakeholders, including homeowners, tenants, and investors

When it comes to these key metrics, some property managers offer limited value-add to their customers. For instance, they might have years in investment real estate, which can be a plus to some type of property investors. However, when it comes to managing rental properties, that’s a whole new ball game!

Diversity Breeds Competitiveness

So, why is it key to partner with a property manager that brings a diverse set of rental real estate management skills and experience to the table? The one-word answer: Competitiveness! A Baltimore rental property management company, who specializes in all-things related to the rental real estate market, delivers clients the competitive edge they require in today’s highly heated rental market:

  • It takes a real estate professionals with intimate local knowledge – one region to another, and one neighborhood from another – to foster competitiveness
  • Winning the tight rental market war is about targeted marketing, strategic property positioning and promotion
  • Bringing cutting-edge technology solutions to property management and tenant services is vital to stay competitive
  • Good property maintenance and up-keep – inside and out – is the holy grail for commanding competitive premium rents

There’s nothing better to accomplish these goals than having a solution to handle all these needs. From premier property management to tenant solutions and investment, it requires local insights and strong analytical skills from a property management team to get things done.

Why Local Matters?

Rental real estate markets are fickle, with unique sets of nuances. A Baltimore rental property management company, that doesn’t understand rental trends from one municipality to another, and between neighborhoods, is likely not the best company to partner with. That’s because, as a rental property owner, or investor, you want the best return on your investment. And without a partner that has intimate local knowledge of the area where your properties are located, you won’t receive the best value for your money!

TREU brings that value-add to its partnerships. From marketing and leasing advice to suggestions on enhancing a portfolio, we are the only rental management company in Baltimore that has the know-all and experience to make effective, productive decisions for homeowners, tenants, and investors. That’s how we win premium rents for our clients.

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Real Estate

Real Estate Trends to Keep In Mind!

In the first quarter of 2018, real estate prices in Canada experienced a decline. This indicates that Canadians are not as confident about investing and purchasing properties as they have been previously.

In addition to this trend being seen across all areas of Canada, it has also been observed in some specific cities more than others. Cassidy Davey and Francis Lafleur {Cassidy Davey et Francis Lafleur} are responsible for Lafleur Davey, one of the best real estate agencies in Canada. They keep track of these trends and more and can answer any questions you may have!

Here are five trends you should know about in the Canadian real estate market.

  1. Re-evaluating property values: Overall, prices have declined in Canada. However, some cities are seeing more significant drops than others. For example, the average cost of a home in Calgary has dropped by almost three percent compared to last year, while Vancouver increasedby over six percent.
  2. Falling sales: With property prices coming down, Canadian homeowners are starting to see the benefits of this decline. Since January 2018, the number of homes sold in Canada has gone down by five percent compared to last year. This is a major shift from 2017, when there was an increase in home sales volume across all regions except Quebec and Atlantic Canada.
  3. Changes to mortgages: With the new mortgage rules that came into effect in January 2018, home buyers need to grasp better how much they can spend. These changes mean borrowers will need higher down payments and stricter income verification before being approved for a mortgage.
  4. Investing in real estate: Many people invest their money into properties beyond purchasing homes for personal use. However, this is not the only investment Canadians make. There was an increase of almost 30% regarding investments made by non-residents with Canadian property over the last year.
  5. Investing in commercial properties: The Canadian real estate market is not just about residential homes. Many Canadians are investing in commercial properties, and this trend has been increasing over the last several years.

The future of Real Estate:

The Canadian real estate market is becoming more and more unstable. As a result, it will become even harder for homebuyers to get mortgages and secure financing in the future. This could eventually lead to price stabilization across all regions, but Canadians should be prepared for changes when purchasing a property.

In conclusion, the Canadian real estate market is experiencing a decline in many areas. This affects home buyers, investors, and brokers alike, so all parties need to be aware of these changes throughout Canada.

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Real Estate

The Current Housing Market Is Unkind to First-time Buyers

The pandemic boosted the demand for real estate across the United States. The record-low mortgage rates throughout the past year, as well as savings from holiday trips that were not made, enabled more people to afford dipping their toes into real estate investments.

However, it created a greater demand for homes, and there are not enough properties for sale for everyone who wants to buy. The pandemic restrictions also caused many owners to defer sales. They did not want to expose their family to the virus by opening their homes to potential buyers or moving across the country. For a while, all construction work was halted. The lockdowns only permitted essential activities, and working on-site created a risk of infection.

In addition, the shortage is a culmination of years of underbuilding. The number of single-family units has been relatively low for the past decades compared to the years before the housing bubble and the Great Recession.

Competitive Home Buying

This has resulted in a very cutthroat market for buyers. Everywhere across the nation, people are competing to purchase a property. They are submitting multiple offers to outbid other buyers. Some buyers offer to pay in cash to have an advantage over competitors.

It is driving the cost of becoming a homeowner up. Even if mortgage rates remain low, the market is just not favoring buyers right now.
And, young first-time homebuyers could not compete.

First-time Homebuyers Exit Competition

The number of properties that have been listed for sale in the market rose this year. By July 2021, there were around 1.32 million unsold homes, a 2 percent growth from the month prior.

People are still snapping up homes, but most of it is happening in the upper-end markets. There is no longer sales growth in mid- to lower-tier markets. Experts explain that there are still not enough starter homes available to those buying a house for the first time.

A report by the National Association of Realtors revealed that first-time homebuyers account for 30 percent of sales in July 2021, a slight decrease from 31 percent in June 2021. However, the difference is stark compared to last year. The number of house sales to first-time homebuyers is lower by 34 percent than in July 2020.

First-time homebuyers are already facing a lot of difficulties buying a home. They are typically young and have no extensive credit history. They also have a shorter employment history, have had less time to save up for a deposit, and have a lower income.
All these give them a disadvantage, especially in a hot market.

First-time homebuyers can still borrow funds to buy a house to call their own. Some hard money lenders are more lenient than traditional financial institutions and will approve a loan application much faster.

But the rising prices of real estate properties continue to be an issue. A person who earns $100,000 can acquire a $300,000 home. The general formula to determine if a household can afford a purchase is multiplying their income by three. However, in major cities across the nation, list prices were about 5.5 times the median income of first-time buyers.

Becoming a homeowner, at least right now, is an unreachable dream for many young people. Millennials, who are hitting their peak homebuying age, are being held back by the rising cost of owning a home. The generation has already suffered through the Great Recession. Now, they are facing another crisis that prevents them from becoming homeowners.

Outlook for 2022 and Beyond

There was a point in 2020 when the market was favorable for first-time buyers. Those who took advantage of the very short window of opportunity enjoyed low mortgage rates, faced fewer competitors, and relatively more affordable options.

Some analysts believe that the home prices will stop soaring and might drop in the coming months. Others think that, in the best-case scenario, home prices will start to level off as supply bounces sometime in 2022.

The current housing boom will flatten when the mortgage rates begin to rise again, but that may not happen until 2023.
Unless construction of starter homes significantly picks up, many young people might have to wait a little longer to become homeowners. The housing market is estimated to need 5.5 million more units to satisfy the demand.

There is currently a high demand for housing units in the U.S. However, there are not enough homes right now, and it is driving prices up. For many first-time homebuyers, the market is too competitive and expensive. If one has the desire to purchase a property, they’d have to take extra care and caution to do it right.

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