Monthly Archives: August 2020

Pending sales up 16.6% | Bedford Hills Real Estate

Pending home sales soared again in June, although the liftoff was relatively shallow compared to the 43 percent increase in May. The National Association of Realtors’® (NAR’s) Pending Home Sales Index (PHSI). The index, a forward-looking indicator based on contracts to purchase existing homes, rose 16.6 percent compared to May, and increased year-over-year by 6.3 percent. The index is now at 116.1.

The two months of improving activity have brought the index back from its April level of 69.0 where it landed after falling by more than 20 percent in both that month and in March as much of the nation was shut down by the COVID-19 pandemic.

The gains were above even the best guesses by analysts polled by Econoday. Their predictions ranged from a 10 percent downturn to gains of 15.6 percent. The consensus was an increase of 5.2 percent.

Lawrence Yun, cheif economist says, “Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.”

In light of the apparent housing market turnaround, NAR has raised its forecast for the home sales market. For all of 2020, existing-home sales are expected to decline by only 3 percent and should be at an annual rate of 5.6 million by the fourth quarter. The same percentage increase is expected for new home sales.

Yun says he expects that the GDP will grow 4.0 percent in 2021 and that, along with mortgage rates that are anticipated to stay at near 3 percent over the next 18 months, should boost home sales. He projects a 7 percent growth in existing sales and 16 percent in new home sales in 2021. Home prices will likely appreciate 4 percent this year then moderate to 3 percent next year as more new supply comes to market.

Each of the four major regions experienced a second month of growth in month-over-month pending home sales transactions. The Northeast, which saw a 54.4 percent gain from May was the only region that did not move higher on an annual basis. Its PHSI is now at 95.4, down 0.9 percent from June 2019.

Pending home sales in the South increased 11.9 percent to an index of 140.3, 10.3 percent above a year earlier. The index in the West improved by 11.7 percent to 99.6, a 4.7 percent annual gain.

“The Northeast’s strong bounce back comes after a lengthier lockdown, while the South has consistently outperformed the rest of the country,” Yun said. “These remarkable rebounds speak to exceptionally high buyer demand.”

Yun says that as house hunters seek homes away from bigger cites – likely to avoid the coronavirus – properties that were once an afterthought for potential buyers are now growing in popularity.

“While the outlook is promising, sharply rising lumber prices are concerning,” Yun said. “A reduction in tariffs – even if temporary – would help increase home building and thereby spur faster economic growth.”

The PHSI is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. Existing-Home Sales for July will be reported August 21.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

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New Home sales jump 14% | Bedford Real Estate

New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.

Census and HUD estimated new home sales in June at a 776,000 seasonally adjusted annual pace, a 14% gain over May and the strongest seasonally adjusted annual rate since the Great Recession. The April data (571,000 annualized pace) marks the low point of sales for the current recession. The April rate was 26% lower than the prior peak, pre-recession rate set in January.

The gains for new home sales are consistent with the NAHB/Wells Fargo HMI,  which returned to pre-recession highs and demonstrates that housing will be a leading sector in an emerging economic recovery. Consider that despite double-digit unemployment, new home sales are estimated to be 3.2% higher through for the first half of 2020, compared to the first half of 2019.

Moreover, pricing firmed in June, with median new home price expanding to $329,200. However, headwinds remain, including elevated unemployment and surging lumber prices, which exceeded their 2018 peak this week.

Sales-adjusted inventory levels declined again, falling to a 4.7 months’ supply in June, the lowest since 2016. This factor points to additional construction gains ahead. The count of completed, ready-to-occupy new homes is just 69,000 homes nationwide. Inventory (including homes available for sale that have not started construction or are under construction) is 7% lower than a year ago.

Thus far in 2020, new home sales are higher in all regions. Sales on a year-to-date basis are 0.2% higher in the South, 3.1% in the West, 12.6% in the Midwest, and 22% higher in the Northeast.

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How to use digital marketing to sell your home!

Alt: Different words that describe how to use digital marketing to sell your home, circled with a red marker.

With the COVID-19 global outbreak seriously hindering the real estate industry, people all over the world are looking for effective ways to advertise and sell their homes. One of the best strategies for now proved to be digital marketing. With that in mind, let’s see how to use digital marketing to sell your home!

Hiring a real estate agent

You must be asking what a real estate agent has to do with digital marketing. Well, they are using websites, right? Advertising your home online is the best way of finding a buyer. And, with mortgage rates going down, buyers will look to hire real estate agents.

Building your own website

A more personal way of using digital marketing to sell your home is to build your own website. Today, you can quickly set up a webpage at affordable prices, and this is a fantastic way to offer potential buyers more personal information. You can attach videos of online house tours, add photos, write notes about the place, and have a 1-on-1 conversation with a potential buyer.

Caption: By using a website and social media platforms, you are easily getting connected with people all around the world.

Alt: A girl standing and holding a laptop, surrounded with icons of different social media platforms.

Even though this website option might seem like too much of an effort for selling a place, there are other advantages to it.

Running a blog

If you start a blog on a real estate topic and post quality content, you will soon get readers. And, if you have well-written articles, the numbers will only go up. Articles are a fantastic way to advertise, and you never know if a reader might be a potential buyer.

Social media campaign

It is a fact that social media changed the world forever. Be it for the better or for worse, that is yet to be decided. Nevertheless, many people run businesses solely on social media. At Cofe Winchester site we will get different blogs to view business marketing tips. Simply, click here for business related useful information.

Since it has a wide reach, you can use various profiles to post ads about selling your place.

Ways that realtors use digital marketing to sell homes

Besides trying to sell a home on your own, which is an admirable feat, by far the best way to sell a home is through hiring a real estate agent. They use many digital marketing strategies to quickly sell a place, so let’s see what is their approach.

Pay-Per-Click advertising

Many professionals use Pay-Per-Click advertising to generate new leads. Many people earn money by clicking on ads, and this is a proven strategy to find potential buyers.

Getting in touch with a real estate agent is the best way to quickly get in touch with a lot of buyers.

Webinars for buyers

Many real estate agents host webinars about real estate. Both buyers and sellers attend these webinars to learn more about the industry and get in touch with potential clients.

You can even search for similar events in a nearby area and attend it. It might just happen you will meet the next owner of your house!

E-mail campaigns

E-mail campaigns are another strong tool that can help you sell your place. If we look at any real estate agency, they have thousands of clients, both looking to sell or buy. Each client has specific needs, but they can be grouped depending on different categories.

For example, all single people will look for smaller apartments, while families with children often look for a house.

Real estate agents can start e-mail campaigns where they can inform targeted groups of buyers if a new home that fits their requirements popped up on the market.

Stages of a digital marketing campaign for selling a home

Now that you familiarized yourself with different digital marketing channels you can use to sell your home, let’s talk about the structural composition of a digital marketing campaign.

Caption: Understanding how digital marketing works will help you to sell your home faster.

Alt: A poster saying INTERNET MARKETING in the middle, surrounded with words that represent various digital marketing components.

If we follow examples of professional digital marketing companies like Digital Dot New York, we can see a pattern of success. The main components of a digital marketing campaign are:

  • identifying your targeted group of clients
  • setting clear goals
  • working only with trusted partners
  • always value the quality of the service over the quantity

Identifying targeted groups of buyers

In order to create a successful digital marketing campaign to sell your home, first identify your potential buyers.

What kind of home do you have? How many rooms? Is it a house, or an apartment? Does it have a garage? If it is in a building, is there an elevator?

There are so many questions you can ask yourself, and each of these questions is important in identifying who your buyers are. As an example, if you live in a building and there is no elevator, you should not target families with babies.

Once you know who your customers are, you can find ways to advertise your place.

Set clear goals

While the main goal is to sell your home, you should think outside of the box when it comes to setting goals. If you have a simplified approach you might lose a lot of buyers.

The real estate market is huge, and there is a lot of competition. If you wish to sell your place quickly, you must find a way to make your home stand out in the crowd. And that’s what your goal should be!

Caption: Have a clearly set structure of goals in front of you, that is the best way to create a good digital advertisement for selling your home.

Alt: A structural tree showing various components of digital marketing.

Outline all the good elements of your place, but do it from a distance. Do not be too pushy, or you might drive clients away.

Work with people you trust

There are many real estate agencies on the market. However, not everyone will create a good offer for you. With that in mind, always look for recommendations and read reviews.

The same applies when looking for professionals to help you start a digital marketing campaign. If you apply this strategy, you will show that you are focusing on the quality and experience, instead of just looking for a cheaper agent.

That’s how to use digital marketing to sell your home As you can see, there are many different approaches if you wish to use digital marketing to sell your home. In the end, it all depends on what strategy will show as the most efficient one. Nevertheless, there is no reason why you should not try multiple strategies at the same time. Only by combining these elements you can find the right buyer quickly, and make a good deal. Good luck!