Boring can be better

Have you been watching the recent real estate reality TV shows?  Properties in prime cities are now sitting on the market for over a year and sometimes much longer.

Having traveled that road in past years, I can suggest extreme caution when making real estate purchases. Many areas of the area (especially the tier one areas) appear to have peaked and potential buyers are pushing back to find real value.  That is what I refer to as "what the buyer is willing to pay and the seller is willing to sell for" AKA...present value.

This should not stop the wise investor from seeking wise investments.  In my opinion, too many top heavy investors have overpriced these top heavy cites and smart investors are seeking intelligent investments where the ROI, and capital investment make sense and offer an upside for the buyer./investor.

Think before you sink.  Real estate is rarely a short term gain.  If you buy right, you benefit later. 

Noticeable Real Estate Buying Trends by the Chinese in US Markets

It's no secret that the US has always attracted international investors.  They have included individual buyers/investors as well as larger institutional buyers.  One noticeable trend that has been documented by Chinese investors has been shift in acquiring both trophy and real estate in sectors that do not have the same "curb appeal", or get the attention that previous buyers have focused on when purchasing US real estate.

In a recent article, it was noted that many Chinese investors are seeking out investments that do not necessarily stand out, including luxury hotels, class A office buildings and other well known properties that are well documented in first tier cities.

As I stated in a previous post, with our new administration, much of the emphasis was place on middle income workers in 2nd and 3rd tier cities and a commitment to improve the quality of lives, incomes, jobs and education in those areas of the country.

Could the Chinese be on to something?  Do they recognize a forthcoming plan to get into the real market on a sizable level (at an early stage) in many of the potential growth areas?  It is no secret that while many foreign investors are still buying in tier one areas of the country, prices in many of these areas appear to have reached record highs and the days of buying at asking price has declined in many of these major cities.

More recently, international investors are seeking out mid- tier properties, which also includes investments that have not always been a priority for international investors.  These include student housing, senior living communities, affordable housing, mid level rental communities, and the like.

In summary, I believe that several factors are contributing to this gradual shift into broader real estate markets, locations and types of investments.  As I have stated before, real estate is local in nature.  Knowing these 2nd tier cities and where high potential opportunities exist is paramount in making strategic investments in the coming years that may very well offer excellent returns for savvy buyers.

Latest Real Estate Projections

After reviewing Case-Schiller and other professional economists that focus on the real estate sector, they once again prove that real estate is local in nature, but paramount to our national economy.

With a new President entering the White House, so much speculation is already being analyzed concerning wealthy urban areas including: Manhattan, Washington DC, Boston, Philadelphia , San Francisco and several other major metropolitan areas.

While these larger, more robust cites in the US certainly stand out, the impact, or spillover effect on 2nd-3rd tier cities will also be impacted.

Again, real estate is local in nature, but the coming year will definitely feel the national impact that arise due to interest rates, demographics, shifts in the economic sectors nationally.  Other key factors that help define the desirability and affordability of the cities that appreciate in value, remain flat or even reverse in value will be defined during the new administration.

We have much to learn in 2017 and time and the decision making process of this administration will certainly have a significant impact on valuation in the coming years.

                                                                           N.Y.C 

The Greater Jacksonville Housing Market

                                                                                                       San Marco

The Greater Jacksonville housing market is expected to experience a significant improvements in sale growth and in price appreciation in 2017.  This projection has been confirmed by leading national data and analytics.

Values are expected to increase by 4- 6% and sales could increase up to 8% over 2016. This is good news for buyers and sellers, as Jacksonville is still considered to be one of the few major Florida cities offering affordable housing and a large diversity of neighborhoods to choose from.

Forecast 2017 

A Snapshot of The Real Estate Market in 2017

As the real estate market continues to find it's place (at least in terms of U.S markets), values have proven to be quite diverse in many areas of the country.  Much of the west coast has experienced enormous appreciation (especially in many areas of California).  Other cities/states including Seattle Washington and Portland Oregon have also seen huge spikes in housing prices and lack of availability. In summary, many of the western states have enjoyed moderate to high levels of appreciation which has been driven by both domestic and international buyers who are driving up the market, especially the luxury market.

As we shift to the east coast, New York (specifically Manhattan and neighboring boroughs and communities) have experienced the very same extreme appreciation levels that have not been seen since the Great Recession. That being said, the luxury market in particular are seeing a slowdown in purchases, days on market and lower than usual sale prices.  Foreign buyers have notably been a key factor during the ride up in New York and surrounding boroughs.  Now that many of our international buyers have slowed in their purchasing power, lower values may be on the horizon.

In summary, I think the big question for New York and to some degree, many cites on the west coast will depend on the buying power of the Chinese.  With a looming real estate financial bubble at there doorstep, how will investors react? How will the Chinese government react?  How will this affect U.S markets? I am sure these topics will come up as we end 2016 and move into 2017

                                                                      City in China

As a highly experienced  Real Estate Broker Associate in the Florida market, I have seen appreciation vary widely based largely Florida's geographic market and capital(once again) dictating value for those markets. I have lived and worked in many parts of Florida(including Miami).  We have all heard the saying "When the U.S sneezes the world get's a cold"  While we now live in a much more integrated world and this statement is much less relevant than it was 10-15 years ago.  I think it should be noted that the same saying might be a more relevant statement for Miami.  "When New York sneezes Miami gets a cold".   Many reports are showing that developers are pulling back, sales are slowing and profits from recent sales were actually made have dropped dramatically.  The same issues and challenges that New Yorkers are beginning to face are a fact of life in Miami much of the real estate sector.  Not surprisingly the luxury market which is extremely overbuilt while thousands of new units will be entering the market during the next 24th months.  Hunker down!!

                                                                         Miami

My advice, seek realistic returns in second tier communities that offer many or most of the same amenities as those of first tier cities.  Seek out locations where big companies are adding space and infrastructure is being built to support growing demand.  As a North Florida realtor and  native, I have seen this area grow dramatically with large scale/global companies like Amazon and IKEA add opportunities for thousands of new workers.  Prices are modest and values have not been driven by international influences that come and go with time, creating a roller coaster ride for long term value investors.  A solid return is the goal for 2017.  

Happy Investing!  Schastlivyy investirovaniye ! Investire felice ! Hyvää investoimalla !

Glücklich investieren! Bon Investissement !

快乐投资

All is not what it seems ....

I learned long ago....all is not what it seems.  

While is is critical to work with a realtor whom you trust and truly understand your needs and preferences.  At the end of the day, it's your money, financing and investment that is being made for what is most likely a very large investment on your part.

In my experience, I have dealt with agents that come in many shapes and sizes.  Some will tell you what you want to hear, but most have your true interest at heart.  Even then, we may not get it 100% right.  This is why I strongly suggest that buyers should seek out advice and information about a property and location prior to making that initial offer. 

 

For example, i have lived and worked in many beach communities in North Florida  as well as the Miami area and South Beach. I have learned that it is not just knowing your market inside out (which is critical), but knowing your buyer as well as others who may know your buyer(s) before making that offer.  They can be a factor in shaping the decision making process (even for the most educated buyers).

In summary, I believe that all realtors want to see a happy customer for both the buyer and seller. Buyers today have plenty of data to conduct research and bet the process started.  It is up to us to make sure that what they see is truly in fact what they want and is best for our customers.

Lucky's Market

Lucky's Market continues to expand.  The Boulder CO. based grocery store chain has selectively chosen locations that it it believes customers will appreciate.  The specialty chain store that focuses on organic and locally grown products is proving to be an early success in the beaches area of Jacksonville.     

At last count, Lucky's Market and it affiliates  have employed close to 2000 employees and operate 17 stores in 13 states.  

Neptune Beach was very excited to learn that Lucky's had chosen this small beach town community to open one of there newer stores.The store itself appears as an inside "Farmers Market".   It also offers high quality prepared foods and specialty items for customers.

Jacksonville and the Beaches now enjoy choosing from so many specialty and main stream stores.  Thanks to Lucky's , we have another great grocery store to add to our choice of providers.