Archive for Real Estate

New Home Sales Benefit the Community

Holly Schroeder, CEO of the LA chapter of the BIA, wrote a compelling article about who benefits from home sales.

We know that the buyers and builders benefit from the sale of a home. The buyers have a new place to live and the builder has revenue. But what happens if you aren’t a builder? Maybe you’re a landscaper, a local business owner or dog walker? How does that sale help you? What if we told you that you can benefit from that sale as well?

New home construction opens up immediate possibilities for the community and can help sustain those communities for years to come. Schroeder writes:

“According to economists at the National Association of Home Builders, the one-year estimated local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs.”

When someone moves into a new home in an existing or new community they will likely begin to use the resources around them. They’ll shop at local shops, their kids will attend local schools, they’ll hire local services to help maintain their home, they will be part of the whole that keeps that community going. In the long term, that money will be recycled back into the neighborhood. Schroeder writes:

“The new family also pays local and state taxes. These tax revenues help pay for a wide range of government services, including school teachers, police departments, refuse collection, parks maintenance and road repairs. In the Santa Clarita Valley, fees are paid to build a home that pay for new infrastructure – roads, schools, parks, plus police and fire facilities.”

Families who invest in a newly built home gain many benefits but they also help give back to the community in the long run. Schroeder concludes, “The advantages of new homes extend far beyond the buyers and the builders – residential construction has a positive, direct impact on the local community for years.”

Read the full article here.

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Real Estate Web Traffic – Who Drives the Ship?

It was reported early this week that popular real estate websites like Zillow, Trulia and Realtor.com drive nearly half the nonmobile real estate traffic on the web.

Experian, a service that tracks metrics, reported a total of over 482 million visits to real estate sites from a desktop computer in January which is a 12 month high for this specific topic. Numbers like that show that interest is high, which hopefully means demand is definitely higher than it had been in 2012.

Here’s a list of the 10 most-visited real estate websites for January 2013:

Rank Website Total visits Visits share
1 Zillow 44.19 million 9.17%
2 Trulia 33.70 million 7.00%
3 Realtor.com 29.32 million 6.09%
4 Yahoo Homes 26.48 million 5.50%
5 FrontDoor Real Estate 26.14 million 5.43%
6 Homes.com 17.98 million 3.73%
7 MSN Real Estate 7.17 million 1.49%
8 Rent.com 7.12 million 1.48%
9 AOL Real Estate 6.56 million 1.36%
10 Apartment Guide 5.89 million 1.22%

*Chart comes from Experian Marketing Services – does not include traffic from mobile devices

Do you regularly visit any of these sites? Or do you have others that you frequent?

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Home Prices are Going Up and so is Buyer Confidence

It’s no secret that times have been tough over the past few years for home buyers and builders alike. With fluctuations in markets and the economic downturn it was hard to see a light at the end of the tunnel. Fortunately as we venture into 2013 we’re seeing a turn for the better, something some feared would never come.

According to the National Association of Realtors quarterly report, “…The national [home] price showed the strongest year-over-year increase in seven years.” Inman points out that nationwide housing prices are not only going up but “for-sale inventory hit its lowest level in 12 years.” Is this finally the turn around?

The median sales price jumped 10% nationally Q4 1012 and is the highest jump the nation has seen since Q4 2005. Lawrence Yun, NAR’s chief economist stated, “Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates. Our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play.” She also added that more housing construction is needed to relieve pressure in the market.

According to the report – San Francisco, Fremont, Oakland – saw a 28.3% change $462,300 Q4 2011 to $593,220 Q4 2012. Likewise a U.S. housing affordability index created by NAR saw a record high in 2012 to 193.5 from 186.4 in 2011.

As home prices increase, the economy’s affordability index also increases, so as home prices rise the conditions should stay favorable with individuals seeking out new homes. Buyers are more confident now then they have been in the last several years.  The increase in pricing and buyer moral can only mean great things for the home building industry, especially in the Bay Area, as new home sales is over performing and remaining steady through the first of the year. Let’s look forward to what 2013 has in store.

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