Hottest Trends in Luxury Real Estate

For those who can afford some prime real estate, it appears to be a buyer’s market around the world.

New York City has been affected by the volatility of Wall Street, rising interest rates and political uncertainty, so buyers aren’t so easily seduced into plunking down big bucks for a luxury pad unless it features some incredible amenities.

Thus far in 2019, home sales are sluggish in Manhattan, and real estate experts believe it is due to an overpriced luxury market. According to NYC’s Donna Olshan, president of Olshan Realty, people are showing up at open houses but not taking the bait. She says that sellers are having to reduce prices by 10-percent to try and lure a potential buyer.

For those who are interested in the purchase of a luxury condominium or apartment, certain features are making the selling easier. Today’s home hunters are attracted to a property’s extras that deliver well-being and serenity. For example, there is an 88-story super-luxury tower in NYC that has splurged on the health and wellness factor. The special amenities comprise 44,000 square feet on the 50th and 51st floors and house spacious facilities that include a 75-foot pool, a yoga studio, a fitness center and a private spa.

Across the country in San Francisco, the numbers show a different story with the Bay Area maintaining its domination as one of the fastest growing locations for homes over $1 million. High-price buyers are fearless thanks to tech industry start-ups moving into the region and bringing with them a major boost to the economy…

See http://jasoncohenpittsburgh.com/hottest-trends-in-luxury-real-estate/ to continue reading. Thanks!

Advertisements

Should You Rent or Own in Pittsburgh, Pennsylvania?

Part of the American dream is to own a home. Unfortunately, the dream can quickly turn to a nightmare if a person invests in a “money pit.” Whether new to the area or a long-time resident of Pittsburgh, many wonder if they should rent or buy their abode. Those who want to build wealth and give their credit score a significant boost should take on the role of a homeowner. However, it all comes down to lifestyle and finances.

Pittsburgh is Rental Territory

recent study was conducted that looked at 23 cities across America. Pittsburgh was one of the 16 that fell into what was called rent territory. Being in “rent territory” means that renting is wiser and will help with wealth creation. Though the entire country has shifted to ownership territory, it wasn’t always this way. Back in 1999, the rental market was booming. People who wanted to make long term commitments by purchasing a home, however, plummeted.

Home Ownership Demands Drive Prices Up

The demand for ownership has decreased in some major cities throughout the United States. Places like Atlanta, Houston, Kansas City, and Miami have all seen a decrease in home sales and an increase in rentals. As more people look to rentals for their housing needs, it puts pressure on the housing prices to decrease. Part of the reason why rentals are up in some areas is that prices hit all-time highs and the inventory selection was low.

During the first part of 2018, homes on the market in the Pittsburgh area took an eight percent increase in price. Additionally, there was a ten percent increase in home volume sales. The cost of a home has a significant impact on shifting a market from a renting territory to an ownership one. If homes are affordable, then many people want to invest in something that they can own. However, if the home prices are inflated, many feel that renting is a great way to save money before making such a commitment as homeownership.

The Final Decision

As with any area, the decision to rent or own in Pittsburgh often comes down to financial comforts for each individual person. For some, it’s more attractive to have a landlord pay for repairs, taxes and insurance, while also avoiding the large initial down payment. Others are ready to make the financial commitment to have a place that’s all their own.

A financial advisor or real estate professional can be a great resource for people who are on the fence between renting and owning.

I originally discussed this topic at JasonCohenPittsburgh.org.

Pets are Taking Over the Real Estate Market

Millennials are now one of the biggest contributors to real estate markets across the globe. This means their wants and needs are significantly driving supply and demand.

More and more adults are waiting until later in life to start a family, choosing instead to focus on travel or career opportunities. However, it isn’t uncommon for young adults to have a pet. In fact, the American Pet Products Association claims that 73% of American millennials own a pet.  A recent study indicated that one third of millennials buying a first home were influenced by their pet’s needs when making their decision.

For many pet owners (especially those who own a larger breed of dog), renting isn’t an option. Properties that allow pets are either expensive, too small or non-existent. This means buying is more attractive, but the home has to be just right.

Yard Space

In past years, it was popular for people to want a decent yard for their children to play in. People with a dog now more commonly desire the yard for a different reason. Similarly, they want the yard to be private and somewhat fenced in. For people with larger dogs that can easily jump a 3-foot fence, the higher the better.

Flooring

Understandably, both cat and dog owners prefer hard floors over carpeting. It makes clean-up easier. There is also a concern with soft or cheap floors because a pet’s claws could cause expensive damage.

Stairs

Single-level homes aren’t just appealing to the aging population. They are also great options for people with elderly pets who have trouble with stairs.

Research suggests that the millennial desire for smaller, single homes that suit a pet’s needs are causing prices of those homes to rise because there isn’t enough supply to meet the demand. Assuming a high percentage of apartments continue to enforce animal bans, the desire for single homes will likely continue to rise.

The desire to keep their pets happy isn’t a second thought for many young people. It is at the top of their priority list, putting some properties out of the running immediately. Their pets are seen as part of the family, so ensuring their pet’s comfort and happiness is equivalent to ensuring their own peace of mind.

See my professional website for more posts on the real estate market. 

How Changing Seasons Affects the Real Estate Market

It’s no secret in the real estate industry that spring is peak season for potential buyers to start looking at homes. Families want to relocate while the kids are out of school and there won’t be any chance of snow-related issues during the move.

While you may get more traffic by listing your home in the spring or summer, that may not be the best choice overall. One study found that sellers are more likely to sell their home above asking price between the months of December and March. This is even true for areas with cold winters. Furthermore, homes listed in the winter sold slightly faster than those listed in the spring, on average.

A possible reason for this could be that people looking in the winter are looking because they’re more serious about buying in a timely fashion. For example, if a couple needs a bigger home before the arrival of a child or if a professional needs to move for a new job. To get in a home they love quickly, they’ll sometimes be willing to pay top dollar.

Before you make winter listings your new passion, there are a few things to consider.

  • The Area’s Housing Market

Real estate fluctuates constantly. Before listing a home, do some research. Look at the homes currently for sale when winter hits. Have they all been on the market for two months? If so, it may be better to wait until the spring when there is a heavier flow of potential home buyers. If someone sees that the home has been listed for a while, they may try to use that as leverage to lower their asking price.

  • The Asking Price

Some sellers choose to price a home low to generate a bidding war. In the winter, that’s not a great idea since you’re less likely to receive multiple offers. However, you also don’t want to list the home too high because that could be an immediate turnoff. Seasoned real estate agents are pros at finding that sweet spot to hone in the right buyers.

  • Repairs that Matter

Home buyers in the winter aren’t looking for a major fixer-upper if they’re trying to move in immediately. If there are problems with the HVAC, furnace or roof, it could be a deciding factor that sends the buyers in another direction. Be sure that the home’s major systems have been inspected and updated if any repairs are needed. Additionally, change air filters, weather-strip the windows and clean the gutters before any showings or open houses.

Winter home sales might not be ideal for every seller, but it’s an option that shouldn’t be completely off the table from the start.

….

Originally posted at http://jasoncohenpittsburgh.com/how-seasonality-affects-the-housing-market/