Real Estate Technology
Article | July 25, 2022
The spring selling season might be pushed back for a couple of weeks or even months as lockdowns restrict activity in some states and territories, according to CoreLogic. Prior to the COVID-19 pandemic, sales and listing turnouts typically rise from September to November. Over the ten years to December 2019, the growth in new listings during spring averaged 15.7% while sales hit 6.8%.
CoreLogic head of research Eliza Owen said both sales and listings tend to be most seasonal in the capital cities, particularly in Sydney and the ACT. With the lockdowns, however, the in-demand locations might not witness the same level of activity this upcoming spring, which is only two weeks away. "Observing housing market performance through lockdowns reveals that both sales and listings volumes will fall through lockdowns," Ms Owen said.
What can be learned from last year's Melbourne lockdown?
The extended lockdown in Melbourne last year could provide a glimpse as to what could happen in this year's lockdowns. Melbourne was in lockdown from mid-July to late October. During the period, listings dropped consistently, hitting the lowest at 1,411 in the four weeks to September, which was 80.7% lower than the previous five-year average.
There are several factors that contributed to the slowdown during the period.
Aside from the obvious restrictions that have limited inspections and auctions to virtual sessions, the low levels of consumer confidence also dampened the overall market sentiment, with vendors being unsure whether they would get an optimal price for their properties. Mortgage repayment deferrals and other government support also contributed, as these prevented distressed sales. However, when restrictions in Melbourne got lifted by late October, there was a sudden shift in the market mood, with listings quickly recovering. "New listings volumes through December 2020 trended an average 40.4% higher than the previous five-year average, suggesting the spring selling season of 2020 was 'pushed back' into the final months of the year," Ms Owen said.
Lockdowns to only postpone market activity
Ms Owen said the trend in sales and listings through a lockdown indicate the relative stability of the economy and the housing market amid the COVID-19 pandemic. "This has meant that housing purchasing decisions were more likely to have just been postponed through lockdowns, rather than abandoned all together.” In fact, the muted sales activity through lockdowns actually led to an uplift in sales across Melbourne in December of 2020 and July 2021, a time when seasonally, sales volumes would usually be far more subdued.
"There are tailwinds in place for housing market demand to suggest this may happen again; household savings rates remain elevated, new average mortgage rates continue to reach new record lows, and many government fiscal stimulus and broader institutional responses have been resurrected amid renewed lockdowns," Ms Owen said.
Affordability might become a concern
The consistent surge in prices across capital cities in recent months have already resulted in the inevitable constraints in affordability. CoreLogic's Hedonic Home Value Index in July showed a 1.6% gain in dwelling values, a retreat from the previous growth of 1.9%. Ms Owen said some support schemes that supported consumer sentiment, such as JobKeeper and HomeBuilder have already ended which could dampen the expected rebound in demand.
The rising threat of the Delta variant of COVID-19 might also be a major headwind, as it could result in further lockdowns which will ultimately impact the incomes of Australian households. "With affordability constraints becoming a larger obstacle in the market, as well as the potential for tighter credit conditions further down the track, if buyer activity does not match the lift in listings we could see a gradual rebalancing between sellers and buyers," Ms Owen said.
Read More
Real Estate Investment, Asset Management
Article | May 25, 2023
Are you thinking about selling your current home? If so, the biggest question on your mind may be: if I sell now, where will I go? If this resonates with you, there’s something you should know. The number of homes coming onto the market is increasing and that could make it easier for you to move up this summer.
While this news has clear benefits for buyers who are craving more options for their home search, what does that mean for current homeowners like you? It gives you two distinct opportunities in today’s housing market.
Opportunity 1: Take Advantage of More Options for Your Move Up
If your current house no longer meets your needs or lacks the space and features you want, this gives you even more opportunity to sell and move up into the home of your dreams. As more options come to market, you’ll have more to choose from when you search for your next home.
Partnering with a local real estate professional can help make sure you see these listings as soon as they come onto the market. And when you do find the one, that professional can advise you on how to write a winning offer to seal the deal.
Opportunity 2: Sell Before You Have More Competition
Just know that, in order to make sure your house shines above the rest, it may make sense to put your home up for sale before your neighbors do the same, creating more competition in your area. The increase in the number of homes being listed for sale is expected to continue, and a recent study from realtor.com says two-thirds of homeowners looking to sell say they’ll do so by August.
A real estate professional can advise you on what you need to tackle to get your house ready to list so they can put that for sale sign up in your yard sooner rather than later. That’s because the process of getting a home ready to sell isn’t taking as long as you may think. As a result, you can capitalize on today’s sellers’ market and get ahead of the competition.
Bottom Line
If you’re a current homeowner looking to sell, let’s connect to begin the process. You have a unique opportunity to benefit from the additional homes being listed today and sell before your house has more competition.
Read More
Real Estate Investment, Asset Management
Article | May 5, 2023
According to a recent Bankrate survey of prospective buyers, the down payment was unanimously considered the biggest hurdle to buying a home. Saving for a down payment has hampered the home-buying journey for approximately 36% of those polled, in addition to the economic slowdown.
The good news is that there are many down payment assistance programs that empower home buyers and mitigate the financial burdens they face on their way to becoming a home owner. Many home buyers are not aware of these programs. Those who do know, have several misconceptions. The key is to understand the options and how down payment assistance programs operate.
Who Qualifies for a Down Payment Assistance Program?
One of the misconceptions that many have is that down payment assistance is only offered to first-time home buyers. Although, modern first-time buyers have multiple options at their disposal, many programs also cater to repeat buyers. In fact, according to the Homeownership Program Index, about 38% of down payment assistance programs in the Q1 of 2022 weren’t availed by first-time home buyers. This implies that repeat buyers can access as many as one third of homebuyer assistance programs even if they have bought a home before.
In addition, repeat buyers can take advantage of first-time homebuyer assistance programs depending on the definition set by the U.S. Department of Housing and Urban Development which states that an individual can qualify as a first time home buyer if they:
haven’t owned a primary residence in three years
are a single parent who has owned a home only with a former spouse
Location and Profession-based Eligibility for Down Payment Assistance Programs
Over and above the multiple options available to first-time and repeat home buyers, individuals in a specific location or profession could also be eligible for down payment assistance. The National Realtors Association says that a number of local and non-profits provide down payment grants and loans that are aimed at area borrowers or those with a specific borrower requirement.
Plus, individuals who work as teachers, doctors, nurses, and veterans can avail of the assistance programs offered by local, state, and federal lenders based on their profession.
To Summarize
Buying a home doesn’t have to be a financial burden. There are many down payment assistance solutions available today to empower prospective buyers fulfill their dream of becoming a home owner. Connecting with a local real estate, and using buyer proptech could help to find trusted lenders and a range of assistance programs.
Read More
Real Estate Technology, Asset Management
Article | May 10, 2023
Effective digital asset management is crucial in real estate. The solutions enhance accessibility, security, and productivity and help professionals navigate the challenges of managing digital assets.
Contents
1 Effective Digital Real Estate Asset Management
2 Five Key Challenges in Digital Asset Management
2.1 Lack of Centralized System for Digital Assets
2.2 Limited Access in Remote Work Environment
2.3 Difficulty in Managing Large Volume of Assets
2.4 Inadequate Protection for Digital Assets
2.5 Disparate Asset Management Systems
3 Top Solutions to Overcome Digital Asset Management Challenges
3.1 Cloud-based Storage for Centralized System
3.2 Virtual Private Network (VPN) to Expand Accessibility
3.3 Automation Tools for Large Volume Asset Management
3.4 Data Encryption to Protect Digital Asset
3.5 Application Programming Interfaces to Connect Disparate Systems
4 Transforming Businesses with Effective Digital Asset Management
1. Effective Digital Real Estate Asset Management
Digital real estate asset management is crucial for businesses from creation to distribution and archiving. Effective digital asset management provides a centralized source for data with tags and unique information fields for correct usage resulting in workflow improvement and enabling seamless collaboration. Real estate digital asset management in comparison to property management ensures effective sharing and routing of files, allowing immediate access to updated files. Digital asset management systems are essential for effective real estate marketing, providing streamlined workflows, enhanced collaboration, and better asset organization and management. The ability to quickly and efficiently access and manage digital assets can provide a competitive advantage for real estate firms, ultimately leading to increased sales and revenue. Along with the benefits of digital asset management in real estate, there are challenges that businesses face; so, it is essential to overcome the digital asset management challenges using the right solutions.
2. Five Key Challenges in Digital Asset Management
Managing digital assets in real estate has been a task for the managers and professionals in the industry to streamline the process and for efficient operations; knowing the significant challenges in advance and getting prepared in advance is necessary.
2.1 Lack of Centralized System for Digital Assets
The lack of a centralized system for digital assets can pose significant challenges for real estate businesses. When digital assets are scattered across various devices, cloud storage accounts, and platforms, it becomes difficult for team members to access and utilize the support needed, further leading to delays in project timelines, errors in asset usage, and a lack of consistency in brand representation.
2.2 Limited Access in Remote Work Environment
With the rapid switch towards a remote work environment, real estate professionals face the challenge of limited access to digital assets stored on local servers or company networks. It results in a struggle to access vital information, leading to productivity issues and hindering the real estate business’ ability to serve clients efficiently. Without access to essential files, team members may face delays in responding to client requests, creating a negative impact on client satisfaction and, ultimately, the affecting business’ bottom line.
2.3 Difficulty in Managing Large Volume of Assets
Managing large volumes of assets becomes a daunting task as the real estate industry continues to rely on digital assets for marketing and communication purposes. Organizing and maintaining digital assets gets challenging and time-consuming without adequate latest real estate marketing tools like digital asset management systems. As the volume of assets grows, managing them manually becomes increasingly complex, leading to errors, duplication of effort, wasted resources, and affecting profitability.
2.4 Inadequate Protection for Digital Assets
As real estate asset management operations turn into virtual functions, cybersecurity threats become a more significant concern, that includes the loss of digital assets, especially those containing sensitive information such as financials, strategies, and prospect contacts. Real estate businesses that fail to protect their digital assets adequately damage their reputation and face legal as well as financial consequences.
2.5 Disparate Asset Management Systems
Using diverse asset management systems across various departments or teams can lead to confusion, miscommunication, and errors in asset usage. The back and forth caused by miscommunication slows down team operations. Businesses and team members without digital asset management systems fail to provide context to files like adding descriptions, collaborators, or connections to specific projects, resulting in misinterpretation about asset placement and potential obstacles in achieving desired outcomes.
3. Top Solutions to Overcome Digital Asset Management Challenges
Digital asset management is a crucial aspect of modern businesses. However, it comes with challenges, and leveraging the latest tools and solutions helps overcome challenges and transform how businesses operate.
3.1 Cloud-based Storage for Centralized System
Cloud-based storage can overcome the lack of a centralized system challenge for digital asset management by providing a secure, centralized location for all digital assets. With cloud-based storage, real estate professionals can access their digital assets at one centralized location. It eliminates the necessity for physical storage devices or multiple cloud storage accounts, making it easier for team members to quickly find and access the assets they need. Additionally, cloud-based storage provides more significant flexibility in managing and organizing digital assets, enabling the use of tags and metadata for easy searching and categorization.
3.2 Virtual Private Network to Expand Accessibility
Virtual Private Network (VPN) helps in expanding accessibility for large volume digital assets. By using a VPN, real estate professionals can securely access a cloud-based storage system from anywhere with an internet connection, enabling them to upload, download, and manage digital assets remotely. This can increase productivity and reduce errors and duplication of effort, thereby positively impacting the real estate business' profitability. VPNs also provide added security, ensuring that only authorized users have access to sensitive digital assets and resulting in improved business efficiency.
3.3 Automation Tools for Large Volume Asset Management
Automation tools can help real estate businesses overcome the challenge of managing a large volume of assets by streamlining the management process. Automation tools like content recognition software, AI-powered asset management systems, and metadata management tools help complete tasks quickly and accurately, reducing errors and minimizing the risk of duplication of effort that was once done manually. In addition, automation can be used to set up workflows and approvals, ensuring that assets are reviewed and approved before use, improving quality control.
3.4 Data Encryption to Protect Digital Assets
Data encryption involves converting the data into an unreadable format only deciphered by those with the encryption key. This process ensures that even if the data is intercepted or stolen, unauthorized parties cannot access it. In the real estate industry, data encryption can be applied to sensitive client information, financial records, and other critical data to prevent cybercrime, protect the company's reputation, and comply with regulatory requirements. Real estate businesses can ensure digital assets are secure and protected from cyber threats by implementing data encryption.
3.5 Application Programming Interfaces to Connect Disparate Systems
Application Programming Interfaces (APIs) help to connect disparate systems in digital asset management by providing a common language for communication between systems. APIs allow different software applications to exchange data and functionality, enabling digital asset management systems for real estate businesses to integrate with other business systems like CRM or ERP. The integration can further automate workflows, reduce duplication of effort, and increase efficiency by allowing data to flow seamlessly between systems.
4. Transforming Businesses with Effective Digital Asset Management
Successful digital asset management in the real estate industry improves both internal efficiency and client service quality. Real estate agents can more effectively market their listings to prospective buyers and renters by keeping digital assets for a property up-to-date and easy to access. Furthermore, future real estate transactions will be conducted digitally, with seamless residential and commercial property purchases and sales. Major stakeholders will benefit from increased transaction speed, lower transaction costs, and increased data availability by utilizing digitalization in real estate.
Read More