Connect with us

Real Estate News

What To Expect in 2022

Published

on

Omicron undeniably put a damper in early 2022 – and as COVID-19 infection rates continue to rise, many may be wondering if we are heading for another statewide shutdown of schools, businesses, and other #life goals that may just be stuttering again are life.

Meanwhile, homebuyers who vowed to finally buy a home this year might feel like a wrench the size of a Mack truck has been slipped into their plans. Will open houses be allowed at all? Will home sellers withdraw their offers because they think it’s not worth the risk?

To shed some light on the coming year, we asked property professionals what homebuyers and sellers can expect in the coming weeks and months.

How Omicron will affect the housing market

Before the Omicron variant of COVID-19 hit the scene, the housing market recovered healthily from previous waves of the pandemic in 2021 and turned bullish towards the end of the year. In the spring of 2021, a survey by Realtor.com® found that only 10% of homeowners had planned a sale within 12 months. By autumn that number had risen to 26%.

These factors had led to a tidal wave of home sales in the new year. And then the new Omicron strain hit in November, followed by a drop in new additions in December.

Was this sudden decline due to Omicron or just the typical Christmas lull?

George Ratius, Manager of Economic Research at Realtor.com, is not sure, but is optimistic that omicron will not slow down the dynamics of the real estate market, especially since this variant appears milder than its predecessor.

“We haven’t gotten through it yet, but so far this virus seems to be much more contagious, but also has a lot less negative impact on illness and death,” says Ratiu. He also points out that data from epidemics in 1918 and the 1950s have also shown that viruses become more contagious but less severe over time.

In fact, evidence from South Africa, where the COVID-19 strain was first detected, showed a steep increase in cases followed by a rapid decline. So there is reason to believe that this latest wave of the pandemic will follow suit in the US.

Omicron doesn’t seem to have hit the economy as hard as previous waves, either.

“The GDP and the economy survived pretty well,” explains Ratiu. “We see housing weather the variant so far. Retail sales, consumer confidence and other indicators show cautious optimism about the path ahead. “

Conclusion: Even if the COVID-19 infection rates are increasing, most experts are not preparing for a shutdown as we saw during the first wave of the pandemic in spring 2020.

“I don’t think omicron will have much of an impact on the sales season,” says The Berkeley Way, a personal finance expert at Penny Polly. “The Delta variant didn’t seem to slow down here [in Tennessee], so neither should omicron. The number of homes sold in Nashville this November was higher than the number sold last November. The upward trend in sales as well as in the median price per apartment continues. “

Why omicron is not stopping home sellers from posting offers today

Even with the high rates of COVID-19 infection, many home sellers are still eager to get listed in the New Year because, frankly, they’ve waited long enough.

“My husband is already retired and we have been dreaming of moving to Maine for a while,” says Meg Rooney, 63, Fairfield, CT. “But we felt paralyzed by the pandemic. The time didn’t feel right in the middle of the crisis. But I think Omicron will be the final surge, and our real estate agent says that despite this current upward trend, people are ready to view and buy in cases. So we will finally bring our house onto the market. “

Most of the brokers we’ve spoken to don’t see a shortage of buyers in their respective markets – especially as more people than ever are taking on remote jobs.

“There is still an enormous amount of catching up to do,” says Tami Bonnell, Co-Chairman of EXIT Realty Corporate International.

The takeaway lesson for sellers: Those who list should expect a lot of offers – although only time will tell whether there will be a repeat of the hectic bidding wars of 2021.

Why omicron doesn’t put home buyers off

In the meantime, omicron doesn’t seem to put off home buyers very much.

“I’m going to hit the Open Houses hard this month,” says Alison Levine, a mother of a toddler and a 6 year old in Cleveland. “I know how high the infection rates are. But the pandemic also showed me that our apartment is too small for remote learning and working from home – and I need a backyard. “

Much like Levine, many of today’s homebuyers have put their home hunting on hold during the past two years of the pandemic. By now they have made it with their cramped quarters and are ready to take a few calculated risks to ascend to a place that better suits their life today.

“Younger parents may have a first or second child and need a bigger house or a different school district,” explains Ratiu. “I see a bright future for the suburbs in 2022.”

In addition to growing out of their homes, homebuyers have one more pressing reason to risk some home tours right now, even with Omicron lurking: Mortgage rates are expected to rise soon.

“Buyers are aware that the current mortgage rates are just over 3%,” says Ratiu. “Even though they have been flat, prices are expected to rise so people are in a hurry to capitalize on them.”

Home buyers should expect a lot of competition this year.

“The demand is great, [but] there is still a shortage of stocks, ”says Bonnell. “I think the first half of the year will be tighter with more bidding battles than the second half of the year.”

One reason omicron is unlikely to hold back home buyers is that so much home viewing these days is virtual rather than face-to-face. In 2020, during the first wave of COVID-19, video and virtual tours were more of a novelty that certain buyers and sellers resorted to when personal viewing was unsafe. Meanwhile, however, virtual tours have matured into a far more sophisticated and everyday experience

“We had a year and a half to practice virtual tours and marketing,” says Norman Miller, Professor of Real Estate and Finance at the University of San Diego. “We took some of the fear out of the process.”

To be successful in early 2022, buyers need to bring their A-Game and start preparing now. This means that you have an up-to-date mortgage pre-approval (it will expire over time), keep a close eye on interest rates, and get ready to prepare for the plunge as soon as your dream home appears.

“My agent and I text a lot about what she sees in the market, how quickly things are selling, and where the hammer price is compared to the asking price,” says Levine. “That way I know how high to bid.”

Real estate in the wake of omicron: what’s next?

While many experts assume that omicron will be more of a slip than a bomb in this year’s property forecast, the only real wildcard is whether further variants are in sight.

“It’s hard to predict, but by and large we will likely see more variations in 2022,” says Ratiu.

But putting our lives on hold is just not for humans, a fact that homebuyer Levine keeps in mind as she moves forward.

“Omicron hasn’t softened things up so far,” she says. “So I get my ducks in a row.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Real Estate News

The state of Idaho County: Part 2 – Growth, real estate and pay | News

Published

on

(Reporter’s note: This is the second of two articles about the state of Idaho County based on an interview with the three county commissioners. This story describes what they’re looking forward to in 2022 and the challenges ahead.)

GRANGEVILLE — Commissioner Skip Brandt said he looks forward to continuing to work with the other elected officials in Idaho County in 2022. “The county has a great group of elected officers who work well together to deliver the necessary services that we need to deliver.” As he enters his second year as commissioner, Lindsley looks forward to being more helpful in his role after serving in his first year went through a steep learning curve to understand the job.

Despite increasing staff salaries by 10 per cent in 2021, the commissioners see the need to keep increasing their salaries to retain their staff. Raising wages while keeping taxes low is a challenge. Brandt said Idaho County has the lowest tax rate of any county in Idaho, except for counties with major ski areas.

Brandt assumes that population growth will continue to lead to an increase in crime. This in turn leads to overcrowded prison conditions. He said the commissioners “have to find a solution to deal with our overcrowded courthouse, parking lot and jail”.

With the demand for real estate and the high cost of building materials, Brandt acknowledges that housing has become a major problem in the county. Commissioner Ted Lindsley shares concerns about affordable housing and sees Commissioners in a cooperative role in housing development to help make things happen. Commissioner Denis Duman noted that Ida-Lew has been trying to do something for years.

The growth is also creating more demand for services, as people continue to move from places where they paid more taxes but used more services. They’re surprised their street isn’t plowed every day while others are asking the county to plow their private driveway, Brandt said.

Brandt explained that the county maintains many miles of roads in a vast area from Warren to Powell. Although the county (Idaho County Road and Bridge) is not currently accepting new roads for its maintenance, there is a fine line to providing services and keeping taxes low. “At what point do we step up and do more?” Brandt said. He suggested the county could provide any service it wanted, but cautioned, “If we make an improvement, we’ll all have to pay for it.”

In addition to the Idaho County Road and Bridge Dept, twelve highway districts maintain road systems within the county. Brandt suggested these local road districts could be a great option for people who want more say in road maintenance. According to Brandt, each district is governed by three Highway District Commissioners who are elected within that particular district. “The freeway districts are the right way to get the county out of this,” he said.

Lindsley said he looks forward to working with Duman and Brandt to determine how to spend the county’s $3.2 million in ARPA (American Rescue Plan Act) funds. While they agree that a new or expanded prison is a high priority, they plan to prioritize other needs. Now they have the final rules for using the funds and can focus more on how best to spend the money.

Duman said he looks forward to the completion of the new airport layout plan in May 2022. With the completion of the plan and the development of a new runway, the county will have more rental space. This, according to Duman, will make it more viable for the Forest Service to expand the air base and tanker base and replace the smoke jumper base. He also anticipates the development of a new pilot’s lounge in 2022.

Lindsley added he was pleased with the increased media coverage. In 2022 he would like to provide further information on what the district government is doing.

Continue Reading

Real Estate News

Kilroy Realty Named Top 10 Real Estate Company on Newsweek’s ‘Most Responsible’ Companies List For 2022

Published

on

THE ANGEL–(BUSINESS WIRE). The company is one of 499 on the overall list, which includes the largest public companies in the United States in diverse industries including healthcare, financial services, automotive manufacturing, retail and real estate.

According to the list, Newsweek wanted to “highlight those companies that take their environmental and social responsibilities as citizens of the country and the world more seriously than others”. Newsweek has partnered with global research and data firm Statista to analyze a variety of metrics, including publicly available performance data in the environmental, social and governance categories, combined with survey results from 11,000 US citizens about their perceptions of companies regarding corporate social responsibility. All items were weighted to arrive at a final score.

“We are honored to be recognized by a select group of peers for our commitment to sustainability, corporate responsibility and acting as good stewards of our environment and communities,” said John Kilroy, Kilroy Chairman and CEO. “Being included in this prestigious list alongside some of the most respected names in the industry is a great way to start the new year,” he added.

In 2021, the company expanded its sustainability leadership among the world’s most recognized organizations and ranking systems included in the GRESB 2021 Real Estate Assessment, the Dow Jones Sustainability World Index (DJSI) and the US Environmental Protection Agency’s National Top ( EPA) 100 list of the largest green electricity users. These awards and rankings underscore Kilroy’s exceptional leadership in industry-leading sustainability initiatives, policies and performance.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “Company”, “Kilroy”) is a leading US landlord and developer with offices in San Diego, the greater Los Angeles area, the San Francisco Bay Area, the Pacific Northwest and in Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in creating a more sustainable real estate industry, the company’s approach to modern business environments helps fuel creativity and productivity for some of the world’s leading technology, entertainment, life sciences and business services companies.

The Company is a publicly traded Real Estate Investment Trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience in the development, acquisition and management of office, life science and mixed-use developments.

As of September 30, 2021, Kilroy’s stabilized portfolio totaled approximately 15.2 million square feet of primarily office and life science space that was 91.5% occupied and 93.9% leased. The company also had more than 1,000 residential units in Hollywood and San Diego, which had an average quarterly occupancy rate of 79.9%. In addition, the Company had six ongoing development projects with an estimated total investment of $2.6 billion, totaling approximately 3.0 million square feet of office and life science space.

A leader in sustainability and commitment to corporate social responsibility

The company is included in the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. The Company’s stabilized portfolio was 78% LEED certified, 44% Fitwel certified, the highest of any NGO, and 72% of eligible properties were ENERGY STAR qualified as of September 30, 2021.

The company has been recognized by GRESB as a listed sustainability leader in America for eight of the last nine years. Other honors include National Association of Real Estate Investment Trust (NAREIT) Leader-in-the-Light designation for eight consecutive years and ENERGY STAR Partner of the Year for eight years, as well as top ENERGY STAR designation for Sustainable excellence over the past six years.

A large part of the company’s foundation is its commitment to fostering employee growth, happiness and well-being while maintaining a diverse and thriving culture. For the second year in a row, the company has been included in the Bloomberg Gender Equality Index, which recognizes companies that are committed to supporting gender equality through policy development, representation and transparency.

Visit http://www.kilroyrealty.com for more information.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions and are not guarantees of future performance. By their nature, forward-looking statements are subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are beyond our control. Accordingly, actual performance, results and events may differ materially from those expressed or implied by the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, without limitation: global market and general economic conditions and their impact on our and our tenants’ liquidity and financial condition; adverse economic or real estate conditions generally and particularly in the states of California, Texas and Washington; risks related to our investment in real estate assets that are illiquid and trends in the real estate industry; non-performance or non-renewal of leases by tenants; any significant decline in tenant business; our ability to sub-let properties at or above current market prices; costs of compliance with government regulations, including environmental remediation; the availability of cash for distribution and debt service and the risk of default on debt obligations; increases in interest rates and our ability to manage interest rate risk; the availability of financing on attractive terms or at all, which may adversely affect our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and to refinance existing debt; a decline in real estate valuations, which may limit our ability to sell assets at attractive prices or to obtain or maintain debt financing, and which may result in write-downs or impairments; significant competition, which may reduce property occupancy and rental rates; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and divestments on announced terms; the ability to successfully operate acquired, developed and redevelopment properties; the ability to successfully complete development and redevelopment projects on time and within budget; delays or refusals in obtaining all required zoning, land use and other required permits, governmental permits and approvals for our development and redevelopment properties; increases in expected capital expenditures, tenant improvements and/or leasing costs; loss of leasehold on land on which some of our properties are located; adverse changes or enactments or implementations of tax laws or other applicable laws, regulations or statutes and business and consumer responses to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on the financial condition of our partners and disputes between us and our partners; environmental uncertainties and risks associated with natural disasters; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic and restrictions designed to prevent its spread on our business and the economy generally. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially affect our business and financial performance, see the factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and in our others Filings included are the Securities and Exchange Commission. All forward-looking statements are based on information currently available and speak only as of the date they are made. We undertake no obligation to update any forward-looking statements contained in this press release that become untrue as a result of subsequent events, new information or otherwise, except as required to do so in connection with our ongoing requirements under federal securities laws.

Continue Reading

Real Estate News

Schmelz, Stallmann announce launch of ELS Real Estate Group | Local News

Published

on

Lifelong friends, Ed Schmelz and Jacob Stallmann, have formed a new company, ELS Real Estate Group.

“I recently decided to do my (real estate) broker’s license in order to mainly get into third-party rental management,” says Schmelz, who Stallmann first met in elementary school. she were college roommates at the University of Missouri at Columbia. Both graduated in 2003.

Schmelz has been a licensed real estate agent for two years. He said it’s not uncommon for developers to have their own real estate license.

“We manage all our own stuff that belongs to ELS Properties. You do not need a broker license to manage your own property, but you do need one for third-party management.

“So with the really great team of people that we have here, I thought, why don’t we offer our services to other property owners?” said Schmelz.

ELS Real Estate Group will become a subsidiary of ELS Properties, a company founded by Schmelz in 2004 that currently owns and leases more than 1,300 homes, semi-detached homes and apartments in Washington, Union, Warrenton, New Haven and Linn Creek. The company also owns a number of boarding houses in Hermann.

Stallmann, who has been a real estate agent for 15 years and previously worked for Coldwell Banker, said his partnership with Schmelz “just made sense.”

In this new venture, Stallmann will continue to be able to help individual clients buy and sell properties, but he will also work to assist Schmelz in purchasing additional properties for further development, which he has done for the past decade.

“Basically, we’re expanding on what we’re already doing,” said Stallmann, who has averaged more than $12 million in real estate sales over the past three years.

Initially, ELS Real Estate Group will operate out of the ELS Properties office in Union, but will open an office in downtown Washington within the next six months, with additional offices planned for Hermann and Warrenton by the end of the year.

The offices are staffed by licensed real estate agents. In Washington, two other real estate agents – Crystal Stallmann, who has been a licensed real estate agent since 2018 and is married to Jacob Stallmann, and John Behrens, who has worked in real estate since 2006 – join the Jacob Stallmann Real Estate Group, a subsidiary of ELS Real Estate Group . Four other real estate agents are already working for the ELS Real Estate Group office in Union.

Stallmann said he would like to see several new agents join his real estate group.

While details of the Washington office will be announced later, locations for the ELS Real Estate Group office at Hermann, 800 Market Street have been finalized. The Warrenton office will be built on a lot adjacent to the Crider Health Center.

As ELS Properties grows into property management and the third-party real estate space, Schmelz said his company is always on the lookout for real estate development opportunities. The Company is nearing completion of Hummingbird Heights in Union and this year will begin construction of Country Club Estates, a 200+ unit gated community south of Washington that will be built for people aged 55 and over.

“We are always in growth mode,” said Schmelz. “We are always looking for new projects, new markets.”

Continue Reading
Advertisement

Trending