October real estate news

As summer comes to a close, there is no shortage of real estate news.

Lack of chemistry

Sure, there are some who think Americans have turned into a bunch of whiners since the pandemic hit, but the Consumer Financial Protection Bureau (CFPB) claims some of the complaining they see is justified.

The number of complaints the bureau has received from consumers during the pandemic has almost doubled since before the crisis (up 44%).

According to the report, “The biggest consumer finance problems since the beginning of the coronavirus pandemic have pertained to credit report issues.”

“Specifically, a lack of chemistry between consumers, financial institutions and the credit bureaus to properly manage the added deferments and adjusted payment plans.”

Now, more than ever, you should remind your clients to check their credit reports for mistakes to avoid losing out in the current market.

Talk about a blind date!

It’s old news that foreign real estate investors often buy American real estate sight-unseen.

According to Zillow, there’s been a huge increase in everyday Americans following suit.

Nearly 40% of buyers say they’re not opposed to buying a home “…entirely online during the current coronavirus outbreak,” according to Zillow.com’s research team.

Surprisingly, 43% of sellers “… would be more likely to try to sell a home entirely online.”

Even after the craziness ends, the researchers found that one-third of buyers will prefer a virtual tour over in-person visits to homes.

Considering that the investment in a home may be many Americans’ largest lifetime financial investment, it’s astounding that so many are willing to undertake the process entirely online.

They’re heeeeeeere!

A study reveals that 40% of Generation Z (born 1996 to the present) want to have a house of their own before they turn 25 years of age.

This means many of them need to act fast, because the eldest of the bunch turns 24 in 2020.

TransUnion, the consumer credit reporting giant, claims that “… at least 8.3 million first-time homebuyers will enter the mortgage market between 2020 and 2022.”

They entered the housing market last year in droves. “Gen Z consumers who took out a mortgage … rose by 112% from the second quarter of last year to the second quarter …” of 2019, according to the report.

The report claims that this younger cohort faces the same confusion as millennials did when entering the housing market. These pain points serve as brilliant fodder for blog posts, social media shares and more for the agent who hopes to pursue Gen Z homebuyers:

Few understand the homebuying process
Nearly 70% of Gen Z members surveyed “… believe that a high credit score is necessary to purchase a home”
More than 40% are under the misconception that they must come into the market with tons of cash to pay a “… high down payment.”
One in three are completely unfamiliar “… with any mortgage financing options
Two-thirds of those surveyed had no clue about Freddie and Fannie

It will definitely be to your advantage to get to know this cohort. If you have grandkid, you are already familiar them. If not, check out our guide to working with Gen Z homebuyers.

The folks at TransUnion remind you that “Information is a powerful thing.”

Lucky is the agent who sells real estate in a ‘Zoom Town’

If you sell real estate in a “… certain type of town,” you may find yourself hobnobbing with the likes of “… corporate executives, Wall Street barons, Hollywood stars and more than a few journalists,” according to Conor Sen at Bloomberg.com.

The towns these folks are flocking to are now known as “Zoom Towns,” and like most of the rest of the country, home prices there are rising while inventory is falling.

These towns include the Hamptons, Missoula, Montana, Truckee, California and Bend, Oregon. The latter, according to Sen, has less than a month of housing inventory.

Chalk it up to technology and the ability for so many to work virtually. While a boon for the communities’ housing industries, however, the fear is that it may be creating a monster.

“… a significant constraint is going to be how much these communities are willing or able to grow,” according to Sen.

He goes on to remind us that “Cities such as Atlanta, Dallas and Houston in a matter of a few decades grew to metro areas with more than 5 million residents each.”

Some of the Zoom towns, however, don’t have the infrastructure and, maybe, the “desire to grow to be major metro areas,” Sen said.

So, there may be a limit to the “Zoom.” It will be interesting to watch this one. In the meantime, there is a bunch of really happy real estate agents in these markets.

Stay well!