Connect with us

Real eState

Predictions From Top Residential Real Estate Authority Dottie Herman, CEO Douglas Elliman – Forbes

Published

 on


As we try to sort out the aftermath of the pandemic and determine the future, I was thinking about a sector that impacts not just our pocketbook, but where we live: residential real estate. So I connected with top residential real estate authority Dottie Herman and asked her about the future of many markets, with a special focus on the nation’s largest real estate market, New York City.

Robert Reiss: What are your predictions for 2025 in some of the major residential real estate markets?

Dottie Herman: No-one can predict the future. Small cities are set to boom in the next five years, while major cities will continue to come off record low prices as a result of the COVID pandemic. Urban markets may see a youth renaissance as they are drawn in by improved affordability through weaker rental rates that began during COVID. Sale and prices may continue to rise for the next several years because the economy is expected to show robust growth. 

  • Dallas, TX: Growth: 25% to 30%
  • Denver, CO: Growth: 25% to 30%
  • Miami Beach, FL: Growth: 12% to 15%
  • New York City: Growth: 10% to 15%
  • San Francisco: Growth: 10% to 15%
  • Atlanta, GA: Growth: 5% to 7%
  • Chicago, IL: Growth: 5% to 7%

Reiss: How did the pandemic impact real estate?

Herman: The pandemic did not change that people need a place to live, what it did change, is that people do not need to be in the office every day, which severely impacted the commercial real estate. Although they are both real estates, residential is doing well, given that people are working from home. Post pandemic, people will continue to work from home, resulting in a decline in commercial real estate. As a result, developers and owners could potentially repurpose space to residential.

Reiss: As you look ahead, what predictions can you make on the long-term impact of COVID on residential real estate?

Herman: A home was always important to people, but people come and go. During the COVID pandemic, the home became even more important to them and this trend will continue. When it comes to life after COVID, people will have a stronger emphasis on health and wellness. Buyers and renters will continue to prefer amenities that contribute to their overall wellbeing. Trends that will continue post pandemic, which including working from home and the office, larger apartments with outdoor space, home offices and multipurpose space will be in demand.

Reiss: How specifically has the pandemic impacted the New York City real estate market?

Herman: New York City is the most expensive housing markets in the country and was the epic center of COVID-19 and virtually shut down in March 2020. In the beginning of the pandemic, the real estate market came to a complete halt. Most people took their homes off the market, being that they could only be shown virtually. At those point, prices dropped, rental vacancies rose, and inventory diminished. Fast forward to September 2020, activity rose, reaching pre-pandemic levels. Inventory opened up creating an opportunity for those that were previously priced out of the market.

Throughout history, New York City has been one of the best long-term real estate investments in the country. People that purchased during the pandemic were able to purchase when both prices and interest rates were at all-time lows. While New York City was the epicenter of the virus, people that believed in the overall recovery of New York City, will be the biggest winners of the pandemic. New York City showed that lower prices presented an opportunity for the real estate savvy and those who were previously priced out. New York City be back to the city it always was.

Reiss: You say New York City will be a stronger market with 10-15% growth by 2025, what do people need to know about the New York City market?

Ten years ago, New York City was rated the second-best city in the world and the first best city in the United States. Five years from now, I believe New York City will be number one in both categories; it will be the number one city in the world! Moving forward New York City will be a younger multigenerational with a healthy diverse mix of people and a multigenerational workforce.

To listen to an interview with Dottie Herman, pre-pandemic go to:

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Calgary housing market sees best Q3 since 2014, says real estate board – CBC.ca

Published

 on


Calgary had its strongest third quarter for housing sales since the price of oil plummeted in 2014, according to the latest report by the Calgary Real Estate Board (CREB).

There were 6,628 sales in the third quarter of this year, a sign that even as the pandemic is continuing to dampen the local economy, Calgary’s housing market remains resilient, says CREB’s quarterly update report released on Wednesday.

The report says much of the growth in demand has been driven by the low interest rates and the fact that many buyers’ incomes were not impacted by the pandemic and in fact saw their savings grow.

Overall, residential prices in Calgary rose by one per cent over the previous quarter and are about nine per cent higher than prices recorded in the third quarter of last year, the report said. 

CREB’s chief economist, Ann-Marie Lurie, says much of the upswing in activity was driven by detached and semi-detached home sales. And she said while supply has risen, it’s still somewhat of a seller’s market in Calgary. 

“Supply-demand balances improved for buyers compared to what we saw in the spring, but the market continued to favour the seller in the third quarter,” she said.

The report says the benchmark price is $538,700 for detached homes. That’s up 10.5 per cent from last year.

In the semi-detached market, the benchmark price is $427,767. That’s up 9.3 per cent from 2020.

For row housing, the benchmark price is $299,933 — 8.5 per cent higher than last year.

And in the apartment-condo market, demand rose in the third quarter, but to a lesser extent, the report says.

“The condominium market never entered sellers’ market conditions like other property types, but at five months of supply, this market is considered relatively balanced,” the report said.

The benchmark price in this sector is $253,533. That’s up by roughly 2.5 per cent year over year.

CREB also notes that, aside from strong resale figures, the newly built side of the market is also doing well, with housing starts up by more than 70 per cent in Calgary. 

CREB says in its report that the boost in the local housing market activity is contributing to an economic recovery that’s also being driven by the uptick in oil and gas prices. 

“This has contributed to employment growth in not only the finance, insurance and real estate sectors, but also the construction industry,” the report said. 

Adblock test (Why?)



Source link

Continue Reading

Real eState

Why people are paying real money for virtual real estate in the metaverse – Financial Post

Published

 on


These virtual properties could be vacant parcels for creators to build on, or structures that reflect real-life properties and completely original creations

Article content

Location, location, location. That’s the common phrase for success in the real estate market, and it’s no different when these properties are listed in an alternative virtual reality, called a metaverse.

Advertisement

Article content

The metaverse is a growing topic in tech and some crypto circles, describing a virtual reality space into which users can log in and interact with one another using avatars to represent their real selves. It has been growing particularly in the gaming space with titles like Fortnite, Animal Crossing: New Horizons, Roblox, and many others fostering a metaverse community for players. Social media websites such as Facebook are also pushing into the space with Horizon Worlds and is planning to hire 10,000 people in the European Union over the next five years to help build their vision of a metaverse.

It’s no coincidence that this concept has sci-fi vibes to it, the term “metaverse” was originally coined in science fiction writer Neal Stephenson’s book “Snow Crash” in 1992 to describe a virtual world that people would plug into using their own virtual avatars. Online games like Second Life, which launched in 2003, were a pioneers for metaverse economies, allowing users to trade goods and services using their in-game Linden dollars — including virtual real estate.

Advertisement

Article content

It is also taking off among the decentralized finance crowd with platforms like Decentraland, an online metaverse space that calls itself the first fully decentralized virtual world owned by its users where they create, explore and trade virtual goods using smart contracts on the Decentraland marketplace. Along with virtual clothes and accessories you can purchase using the platform’s native MANA crypto, you can also secure virtual land parcels and estates.

These virtual properties could be vacant parcels for creators to build on, or structures that reflect real-life properties and completely original creations. They are represented by co-ordinates on the metaverse platform where users can meet up using their avatars to socialize and decorate their own spaces with collectibles.

Advertisement

Article content

The possibilities are endless

Andrew Kiguel

Monetizing this space is starting to give rise to metaverse real estate companies, the first being Metaverse Property. Being a nascent industry, the company works to secure a wealth of land assets in the virtual real estate space. It focuses on buying and selling, managing business properties, offering rentals in the metaverse, virtual land development, as well as consultation and marketing. Metaverse Property currently operates on platforms including Decentraland, The Sanbox, Somnium Space, Cryptovoxels, and Upland.

Beyond being virtual landlords and developers, Metaverse Property also says it is creating what it’s calling the first “metaverse real estate investment trust (REIT)”, which will trade through a non-fungible token (NFT) that is backed by the company’s virtual land portfolio.

Advertisement

Article content

With a bullish bet on metaverse real estate, crypto and decentralized financial services company Tokens.com Corp purchased a 50 per cent stake in Metaverse Group this week valued at about $1.7 million, reportedly a record equity investment in a metaverse real estate company.

Andrew Kiguel, the chief executive officer at Tokens.com, explained that the company’s goal is to secure as many virtual real estate land parcels as possible to rent them out to clients.

On platforms like Decentraland, which has seen more than $50 million in virtual sales for goods like real estate, clothes, accessories, usernames and avatars, an outlying parcel in an area less travelled could run a user around $5,000 MANA, or roughly over $4,600 Canadian dollars as of mid-October. These prices can jump up quickly in larger built-out properties in popular zones, with the highest-selling virtual plot of land recorded on the platform being a $1.3 million MANA property in June, equal to about US$900,000 at the time.

Advertisement

Article content

  1. Bitcoin has climbed to its latest high atop a tide of pandemic-era liquidity, speculative bets and expectations of wider adoption by institutional investors.

    Bitcoin just climbed to a record high with futures-based ETF debut stoking optimism

  2. Cathie Wood, founder and CEO of ARK Investment Management LLC, speaks in New York City, U.S., Sept. 13, 2021.

    Why crypto bull Cathie Wood skipped the new Bitcoin ETF

  3. Jack Dorsey creator, co-founder, and chairman of Twitter and co-founder and CEO of Square, speaks on stage at the Bitcoin 2021 Convention in Miami, Florida, in June.

    Jack Dorsey tweets ‘705742’ and sets crypto Twitter abuzz

Skeptics might find it bizarre to spend any amount of money on a property that they themselves cannot live in, though Kiguel told the Financial Post that there are valid uses for these virtual properties.

“Really, it’s the foot traffic,” Kiguel said. “So, you might want to build a house to invite friends over, you can decorate the walls with your NFTs, it’s a way of socializing…. COVID drove a lot of this: when the world shut down, people turned to their computers as a means of interacting with people, and so the foot traffic in the metaverse continues to grow at a very high rate.”

Advertisement

Article content

Kiguel added that celebrities like Snoop Dogg are getting into the metaverse as well. In late September, Snoop Dogg partnered with The Sandbox to reconstruct his real-life mansion on the platform’s NFT metaverse. Paris Hilton signed a partnership with Decentraland as one of the headline celebrities being featured on the platform’s first-ever Metaverse Festival slated for October 21 to the 24th. Hilton will be using a Genies avatar, which are animated avatars that can speak using the celebrity’s voice.

With this growing adoption and promotion among brands and celebrities, Kiguel expects that more users will flock to the metaverse space.

“The possibilities are endless. There’s museums and galleries, if you want to go in and see some of the most expensive NFTs sold in the world … you can go to Decentraland,” Kiguel said. “So, the possibilities are really endless, here’s all the different things you could do to attract people here.”

• Email: shughes@postmedia.com | Twitter:
_____________________________________________________________

If you like this story sign up for FP Finance Newsletter.

_____________________________________________________________

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Real eState

Real estate cooling with fall temperatures, still on record pace – Winnipeg Sun

Published

 on


Article content

The Manitoba real estate market started to cool off in September, but the province is still expected to smash 2020’s record year.

Advertisement

Article content

There were 1,575 residential properties that were sold last month for total sales of $506.4 million. This is down 12.9% and 9.3%, respectively, from September 2020’s record numbers, but Stewart Elston, president of the Manitoba Real Estate Association said these sales still out-paced September 2019 by 15%.

He said the pandemic push for home offices and bigger yards has died down some but is still a factor. There is, however, an even bigger motivation for homebuyers.

“The pandemic is still playing into it a little bit but by and large it’s interest rates, low-interest rates are still driving the market,” said Elston.

He noted there are consumer protections in place to protect homebuyers in case the low-interest rates shoot up, specifically the stress test required for mortgages.

Advertisement

Article content

The sector is still in good shape to improve on the high-water mark set last year for sales, fuelled by a red-hot spring. So far in 2021, there have been 16,013 residential properties sold, up 23.7% over last year and approaching the year-end record of 16,789 sales. The sector has already surpassed total dollars from 2020 with $5.28 billion in total dollars, up 35.3% over the first nine months of 2020, when the year-end total was $5.1 billion.

There have been 20,362 new listings through September, up 0.3%, and the average sale price of $329,998 is up 9.4%.

Elston said the big shift has come in the sale of condos — which includes apartment and townhouse-style dwellings. While single-home sales are still up 21%, condo sales are up 49% as people look for more affordable options.

Advertisement

Article content

The average two-bedroom condo is selling for about $200,000, and one-bedroom condos are even cheaper.

“For a number of years the Winnipeg condo market was a little on the saturated side, listings took longer for a home to sell,” he said. “Now what we’re finding, we’re not getting a lot of bidding wars on condos or multiple offers, but they’re selling faster and they’re selling for closer to list price. There isn’t the excess of inventory on condos now there either.”

The market slowdown is good news for first-time buyers. As the sector cools the prices will also start to calm down as well.

“I think that’s a good thing and I think that should give any first-time buyer there’s hope of getting into something,” said Elston, who also recommended expanding their neighbourhood search and to consider condos as an affordable alternative.

jaldrtich@postmedia.com

Twitter: @JoshAldrich03

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Trending