Episode #29: Real Estate Trends Of 2019
The Savvy Synopsis
On this edition of the podcast, we make some bold predictions and discuss what we think will be the next trends in real estate in 2019.
Real Estate Myth Busting.
- 00:39 - A realtor in Massachusetts published an article highlighting five real estate trends in 2019. Angie predicts whether we'll see these trends in the Triangle.
- 1:05 - This agent predicts that rising interest rates will affect buying trends. Angie agrees, saying that buyers will be able to afford less house as interest rates rise. In turn, the market will also shift from a sellers' market to a buyers' market, meaning sellers won't be able to price their homes as high.
- 2:52 - Another prediction is that Baby Boomers and Millennials will compete as millennial buying power increases. As Millennials age, they're able to afford more house. This means Millennials and Baby Boomers will start to compete for the same house.
- 7:00 - Trends show Millennials are more comfortable with sweat equity these days. Buyers are more willing to purchase fixer upper homes at a lower rate and dive into renovation projects.
- 8:57 - Buyers are more comfortable with updating their homes, and this plays into the favor of sellers. While you'll still want to have your house move-in ready when you sell, you won't have to worry with complete kitchen overhauls just to get your house sold.
- 11:43 - This week, we venture over to Blakeley in Cary.
- This neighborhood sits just across the street from the new YMCA in Cary.
- This neighborhood was built in 2017, so it's all new build homes.
- It features attached townhomes with two car garages, but they function as single-family homes.
- This is an active adult community, meaning residents must be ages 55 +.
- Price Range: $370s to $500s.
- 14:45 - Travis in Raleigh has a disability that has bound him to a wheelchair. He wants to find a home that is handicap accessible.
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It's time for The Savvy Realtor Podcast. I'm Walter Storholt alongside Angie Cole the owner and broker in charge of A Cole Realty serving you throughout the Triangle teaching you about the ins and outs when it comes to buying or selling a home. You can find the team online by going to A Cole Realty dot com that's A C-O-L-E Realty dot com or by calling 9 1 9 5 7 8 3 1 2 8 that's 9 1 9 5 7 8 3 1 2 8. And now it's time for one of the top realtors in the Triangle. Angie Cole and The Savvy Realtor Podcast. So Angie an agent in Massachusetts put out a prediction of five real estate trends to watch for in 2019. Now most of these did focus on the millennial perspective but I think we can analyze these trends from kind of multiple different angles here multiple generations.
I don't think it has to really be that specific to millennials and I'm just curious if you think these predictions hit the mark. Or maybe you have other opinions about them. This Asian said rising interest rates is going to equal different buyer strategies. What does that mean from that perspective. Why would you need different strategies as interest rates rise.
Sure thing. So as interest rates rise that's going to change up your affordability. For example if you are thinking about purchasing a two hundred thousand dollar home just a 1 percent interest rate will now allow you to purchase one hundred eighty thousand dollar home. So that's twenty thousand dollar difference. Yes with you know your affordability so you know different as far as your strategy goes will be how much home you're able to now afford with interest rates on the rise.
What about sellers. What do they take out of the equation that interest rates might be rising as we focus a lot on the buy side there.
Yeah for sure. While you need to remember as interest rates rise more than likely are buyer count will be lessened. So there'll be less buyers in the market because they will begin to freak out or maybe you know they don't have the means now to purchase a home. So that will mean homes will start to sit on the market longer. Right. Because if you have less buyers in the market is supply and demand you now will have more sellers affected by that because their homes will sit still and days on the market will increase as days and the market increase. Typically the values start to depreciate just a tad bit. So we will start to trend into more of a buyer's market. And right now we are still in a very strong sellers market but as we go into the buyer's market you're not going to see that appreciation that you've seen you know in 2018 2017. So that's going to start I would say just maxing out and really just becoming more plateaued.
Mm hmm interesting. DIANE So that is a trend we do think is for real for twenty nine. One hundred percent yes agree. Another one that was pointed out in this article is that baby boomers this one was generational baby boomers will compete more with millennials. And the idea was that as a millennial buying power is increasing. We're getting older and usually moving into higher income earning positions. We're now looking for the same or similar valued homes as baby boomers and so the two generations kind of compete there.
You're 100 percent correct there. And so that means again supply and demand in regards to you know the homes. I would say so the homes now like in the Raleigh area anything even below like a 350 Mark is super competitive right. Because now millennials can afford a little bit more than what they could in the past when there were at a younger age. Well that is more than likely probably the same price point that the baby boomers are leaning towards because more likely they're now looking to downsize. So probably trying to get rid of the large mortgage payments and just trying to become minimalistic. You know I would say it's very important when it comes to the different generations though I would suggest for sellers to really you know not cater towards one generation versus another. I would make sure that you know you really just stage the home and present the home where it's of the liking of everyone so try to more stay current with just what's being built now you know as far as like our color choices are staging vs. really just gearing towards more of a baby boom or harm or more of a millennial home how do you as an agent kind of balance that you know not trying you know there's the saying if you try to be all things to all people should know that that's not the route that you want to take.
But at the same time you don't want to pigeonhole yourself into trying to just market to one particular group. So is that a case by case basis for you or do you always try to keep it as sort of vanilla or appealing across the board to everyone or are there cases where you'll say let's really market this home to a particular generation.
You know now our team we would actually say let's kind of keep it across the board the same you know use the term vanilla not necessarily vanilla but let's not go we're just fads or just you know what's cool and trendy so much you have to be careful with running with you know this trendy styles that only appeal to me a certain person or certain generation you're just getting too specific and then you're really just dying down on that buyer pool of who might be interested in your home. So you know keep up with the current trends as far as OK what are we putting in new built homes. You know what are most people doing right now which will probably be more of your whites your grays your grandkids your stainless steel. But let's not get too too trendy and fads where we get too much of like glass work you know just be careful leaning one way too much because yes you might eliminate who's interested in your hand.
That's a great point. Totally off subject maybe here for you just from a marketing standpoint did you see the story of the. There was an agent in my. I want see where it was as I don't remember but maybe it was in out west somewhere. Kind of makes sense here. When I tell the story they were having trouble selling a home and so they hired some models to come and basically they did their listing photos with two models down the pictures and you can guess they were like scantily clad models and put that on the MLS listing and the home generated tons and tons I bet it did.
But it also generated tons and tons of complaints probably unwanted traffic. Right. Well right. You know I have seen unconventional marketing I've seen.
I mean that's taken to a whole nother level. I've seen some pictures before where they had is huge like a bear from like the state fair the big stuffed animal. Aha. And in every single room the bear was doing something. I've seen those blow up dinosaurs just like Why. Yeah. I mean I get it like trying to think outside of the box but you know in our listing photos we just focus on the.
Yes but the home be the star of the ad not the scantily clad models. Yeah well that was pretty funny. So anyway that's not a tactic that a call real to use it at work or you know love the models but not in our homes not for sale.
All right. There was also pointed out in this article sweat equity is OK these days and it's maybe a bit surprising that you know us millennials are willing to actually put in a little bit of work to make homes you know exactly what we want them and I went through this transition with our sort of new home so I kind of really identify with this. We bought a fixer upper and have enjoyed that process and it's come with its learning lessons and challenges but we fall right into this category. Yeah from first home to now second home we kind of feel like we're okay tackle on some projects.
Sure. You know at first whenever we we shift into a super strong seller's market I felt like a lot of buyers were still being very nit picky. You know they just thought that time was on their side. They thought that they had 20 options to choose from but then I feel like a lot of buyers got on board and realized that you know what. What we want and in the budget that we want to stay within maybe doesn't exist. So maybe we need to be a little bit more open minded to put an end that sweat equity to make this home what we want it in order to long term get what we want. So you know that immediate satisfaction up up the perfect home. It didn't exist as much anymore just because as prices were on the rise you know they weren't affordable anymore. And so many buyers had to be open minded and really you know be willing to put in you know some sweat in order to get in the long run the home that they wanted from the seller's side.
I would imagine that you know this is actually a good thing for them because didn't sellers feel over the last couple of years a lot of pressure to have the updated home and they couldn't have anything that you know needed to be fixed and everything needed to be really pristine. Now is there a little less pressure and maybe they might experience some savings and saying well we don't need to put in the new flooring or the countertops are OK. They can put in the Granite if they want it. We don't have to do that to get it sold now.
I think you hit the nail on the head right there when you mentioned about like countertops for example. I felt like just all right. I saw in the past where you must add granite you know right now buyers will even want your home unless you put granite into it and that was so true. But you know this day and age a lot of sellers can get by with being very minimalistic as far as the upgrades that they put into their home in order to get it market ready. Now you still want your home move in ready and you know show ready. It needs to still show great and you want a buyer to feel like they can move in and live there immediately. But a lot of buyers are more open to you know what. We can move into this home and we can slowly do the updates as needed or as we prefer.
Speaking of selling if somebody is thinking about doing that here in the near future Angie what's a good first step for them to take. What are some good first couple of things for them to be thinking about to begin that process.
Sure. You know most sellers the most important thing to them is what can they sell their home for. Bottom line the bottom line and you know remember two and selling your home is sales price is important but you truly need to know where you're netting as well which in order to really understand that you need to meet with us for listing presentation so we can actually share comparables you know give you our idea of what we could sell your home for but also what you are truly not a net proceeds sheet is very important because you don't want any surprises when it's time for the closing right but to get started and to just understand what you could sell or potentially sell your home for in today's market what you can do is you can tax us so you can tax us to 5 5 5 8 8 8 and just text the word listing so once again text the word listing to the phone number 5 5 5 8 8 8. And from there we will send you a tax. Make sure to click that link and input your address. And from there we can give you an idea of what you could sell your home for in today's market.
All you have to do is send that text and you can find out that potential sales value of your home. Just text the word listing to 5 5 5 8 8 8. That's the word listing ally s TNG to the number 5 5 5 8 8 8 will text right back with a link and just follow the instructions from there. Takes about twenty to thirty seconds to do this so not long at all.
And you can find out that potential value. Oh yes do this text the word listing 2 5 5 5 8 8 8. Much more coming up on today's program. This is the savvy real tour with Angie Cole. We're talking about some of these 2019 trends.
We've got more of your questions to answer as well on the docket for today. So stay right there. More to come on the savvy real
Let's shine a little light on some of the Triangle's best areas right here on the neighborhood spotlight.
Time to learn about another nook and cranny of the triangle. This is the neighborhood spotlight with Angie Cole the owner and broker in charge of a coal realty helping you learn about all the buying and selling tips when it comes to getting a home here in the Triangle or selling that home here in the area.
And this portion of the show we introduce you to maybe new neighborhoods that you haven't driven through in the Triangle before and tell you all the cool details about living in that area. Angie where are we going this week.
So we're going to carry and the neighborhood is called Blakely said the neighborhood is called Blakely. This neighborhood is built specifically by Kalgoorlie and it comes. They actually started building in 2017. So a brand new neighborhood. The price point is from the three 70s up to the five hundreds. These are attached townhomes a two car garages. But they live like a single family home. The neat thing about this home it is an active adult community. So that means that at least one of the residents must be 55 plus. So that's great for those individuals that are looking to be in the same vicinity of others of maybe like minded. And so it is an active adult community 55 plus they all have master bedrooms on the main floor and just the conveniences and also of course you know with the clubhouse they will definitely have all of this functions just to keep everyone as far as neighborly. And a lot of events. And just to keep you active. Blakely neighborhood is just a quick walk to the new Kerry YMCA which is wonderful as well.
Very cool. It's an A great spot. That area of Kerry is awesome right off of boom and 55 and everything is just blowing up right around there but you know you've got the expressway and you know they can handle that traffic for sure. We used to love going out of Park town when we lived closer to that area. Park side town commons you know the great movie theater there had lots to do.
So yeah. And to me I mean the great thing about this is you had you know the low maintenance of course. And I think that's what most of us look for as we get a little bit older in life as you know you still you have your privacy but you have less maintenance but you know if you want to like I mentioned do those activities with your neighbors. You had that enjoyment as well.
Yeah neat place and great location. And you like you said they live like single family homes. It's pretty cool huh.
If you are more information about living in Blakely and Kerry and about that neighborhood and some of the options that you have there you can give Angie Cole and her team a call or a text 9 1 9 5 3 8 64 77 start a conversation about buying or selling your home in the Triangle. 9 1 9 5 3 8 6 4 7 7. Is that number or go online to a cold real T dot com. That's a COLB real T dot com to find out more information.
This is the savvy realtor with Angie Cole. There's more on the way on today's show.
Stay right there. It's time for the mailbag. We want to hear from you
Plan G it's time to open up the mailbag. Get some questions from listeners here in the area. Our first stop is going to be with Travis in Raleigh. If you'd like to submit questions to maybe be featured on the show you can do that on a call real to dot com. Travis says I've developed a disability that will bound me to a wheelchair for the rest of my life and fortunately my current home isn't suited for someone who is disabled. But how do you go about searching for a home that is handicapped friendly.
Chavez says actually very easy for us. So in our MLS database there is actually a feature or a dropdown where we can put in that the home is handicap accessible. So I know that that is a must for you and we can definitely take care of that by doing a home search specific for your needs just to make sure you know there is access to get into the home easily. The doors have been wide in you know just different tweaks and features to a home to make sure that the home is conducive to your situation.
That's pretty cool. I guess it's just on the responsibility of the agent the listing agent to make sure that they're checking that box so that buyers can be aware of those searches.
Yeah yeah. Because as an actual home buyer if you're just searching online there is no way for you to go through the listings in like Zillow or realtor dot com and tweak the search. So it's specific to handicap accessibility and and through our MLS database of course we do had that feature so we can narrow down your search very easily for you to make sure we're only sending you those type of homes.
You've been listening to the savvy real tour podcast. I'm Walter store Holt alongside Angie Cole. She's the owner and broker in charge of ACO realty here in the Triangle and if you have questions for Angie we invite you to go online to a call realty dot com. Listen to past podcast episodes on the Web site read the blog and all the great information including the option to find a home right there on the website. That's a call realty dot com and you can also call ante with your questions. 9 1 9 5 7 8 31 28.
The above audio transcript of "PODCAST 029 - REAL ESTATE TRENDS - ANGIE COLE.mp3" was transcribed by the best audio transcription service called Sonix. If you have to convert audio to text in 2019, then you should try Sonix. Transcribing audio files is painful. Sonix makes it fast, easy, and affordable. I love using Sonix to transcribe my audio files.