Round up of the latest real estate housing and economic news for 4-27-2016…
Lower Real Estate Commissions in the Future?
As technology progress, it is possible that some agents may be able to pass some cost savings on to consumers:
For years the idea of lowering real estate commissions has been the topic of conversation amongst many in the real estate industry. Since the discount brokerages came onto the scene in full force back in the early 2000s, many home sellers have sought out agents who will cut commissions to save sellers money. Could lower commissions eventually become the norm?
Read more at Will Lower Commissions Become Standard in Real Estate?
Our Terrifyingly Convenient Future
Alexa—and Siri and Cortana and all of the other virtual assistants that now populate our computers, phones, and living rooms—are just beginning to insinuate themselves, sometimes stealthily, sometimes overtly, and sometimes a tad creepily, into the rhythms of our daily lives. As they grow smarter and more capable, they will routinely surprise us by making our lives easier, and we’ll steadily become more reliant on them.
I do not think relying so much on technology is a good thing. Especially because this is often an easy way for your privacy to be compromised…
Pending Home Sales Increase
Pending home sales increased slightly in March for the second consecutive month and reached their highest level in almost a year.
As I have repeatedly stated, this is counting your chickens before they hatch.
This increase is a good thing! Just remember this is talking about the entire US and not just the Anderson SC area!
Renters Worry More Than Homeowners About Housing Costs
Americans who rent their home are nearly twice as likely as those who own their home to say they worry about not being able to pay their housing costs.
This is mainly due to the fact that renters can count on their rent going up every year. Home owners get to enjoy housing costs that remain pretty much the same for many many years.
It is possible that the property taxes and insurance may increase for some home owners. But renters are almost guaranteed the rent will go up every year like clockwork.
Durable Goods Orders Weaker than Expected
We got some bad news from the Department of Commerce as they just reported that dDurable goods orders rose 0.8% in March. This is much lower than most economists had expected.
This really makes me wish I was a fly on the wall as Federal Reserve officials started their two-day policy meeting. It would be interesting to see how they take this report into account when considering their benchmark rates.
I think the Fed will leave its benchmark rate unchanged. The Fed raised their benchmark rate in December for the first time in nearly a decade and it did cause mortgage rates to spike.
Consumer Confidence Falls
From the Conference Board:
- The Conference Board Consumer Confidence Index declined moderately in April
- Consumers’ view of current conditions improved somewhat in April
- Consumers are less optimistic about the short-term outlook
- Consumers’ outlook for the labor market was less favorable
While this bad economic news, I have not seen anyone saying there is a direct relationship between consumer confidence and the real estate market. If consumers are less confident, then it stands to reason they may be less likely to buy a home.
Well that is going to have be it for today as the pollen is making me miserable. As always…