Of all the things we can become addicted to in our difficult world, real estate is probably one of the safer vices. Or is it?
Wanting to see how other people live has been around forever. Certainly, television has promoted shows like the oldie “Lifestyles of the Rich and Famous,” and more recently “House Hunters,” but what we have going on now is far more addictive. The internet, by design, is addictive but may be especially so for potential homebuyers who need to get a jump on properties as quickly as possible.
Several online websites list properties for sale, including properties on local real estate multiple listing services, which once were unavailable except to Realtors. Zillow is the most well-known, and there are plenty of Zillow addicts who are constantly surfing Zillow, not only because they are looking for a home but also just because it’s fun.
Zillow not only lists properties usually by homeowners, but multiple listing properties can be on the site as well. Zillow also lists estimated values if you provide them with a specific address. Believing these numbers can be dangerous in a fast-moving real estate market. Today’s value can be understated in a week. I always remember the owner of the first real estate company I worked for saying if you’re gone for a week, you’ll come back to a whole new market. Now, if you’re gone for a day the market may have changed.
Online real estate websites studies have shown that the highest traffic times on their sites are weekdays between 9 a.m. and 5 p.m. Remember when most of us had jobs actually working in an office during those hours? Well, now that remote work has taken over large areas of the workforce, everyone has time to “Zillow surf” between Zoom calls and changing the baby.
Is all that time surfing working? Maybe. Buyers do have an opportunity to find new listings in their price range and area as soon as they’re on the market, but the stress can be overwhelming.
There is also an interesting report released by the National Association of Realtors indicating that from 2010 to 2020 about 71% of the increase in housing wealth was gained by high-income households. This shows that the housing value gap between households earning more than 200% of their area’s median income and other homeowners widened significantly in the decade. As of the end of last year, homeownership is at 65.5% per the Census Bureau, but that doesn’t appear to be helping middle-income households.
This is a really bad situation that is only getting worse since first-time buyers are being left out of the real estate market more every day. Lack of inventory and rising mortgage rates are only making that situation worse. Homeownership is the path to building wealth and this country is gradually losing the middle class because of all the roadblocks that are preventing them from owning homes.
This isn’t news to the Anna Maria housing market, where the number of properties priced at more than $1 million far outweighs everything else. It’s not too much better off the Island, either. New construction is generally starting above what first-time buyers can afford, and affordable resales are few and far between.
Millennials can surf Zillow as long as they want but, unfortunately, it may not help them. On this, I have no advice. Sometimes the best answer is to take a breath and see what develops.
In this market, it will likely be a long breath.
