Residential real estate : Sales, median price both up

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Millennial will have a limited supply of single-family homes to pick from as median home prices continue to rise and supplies of homes continue to be tight.

Realtors sold 609 single-family homes during March, the third greatest number during the past 12 months and highest since August, according to the Ocala/Marion County Association of Realtors. The data does not include homes sold by owners.

The number of closings during March was 12.4 percent higher than during March 2016 and up from February, when only 438 Realtor sales were recorded.

Along with more homes sold, the median sales price also rose to $142,000, up 11.6 percent from March 2016 and the highest since at least 2013. The year-over-year percent increase for the past 12 months has been in the double digits, with the greatest leap in January, when the median sales price increased 31 percent compared to the year before.

“I think we have healthy growth right now,” said Vicky Morrison, vice president of the Ocala/Marion County Association of Realtors. “And it’s growing steady and the prices are getting back to a normal market.”

Morrison is also the broker and owner of Bricks and Mortar Real Estate and Development.

Also reflective of a healthy market is the sales price in comparison to the original asking price. The median sales price for March was 96.2 percent of the original asking price. That was a 2.3 percentage points better than the same month in 2016. The 96.2 percent was the highest percent of the asking price since at least January 2013.

This is a good indicator of the recovering market, as buyers realize the market is starting to favor the seller.

Some of what’s driving the market could be more people moving to Marion County, Morrison said. She thinks new businesses setting up distribution centers here, such as Auto Zone and Fed Ex, are having an impact.

“Now we’re seeing a reflection in the housing market,” she said.

As sales numbers increase, the inventory of existing homes for sale is not keeping up with the demand. The inventory of active listings during March was 2,730 homes, a drop of 16.8 percent compared to March 2016. The consecutive year-over-year drop in inventory has been in the double digits since September 2016.

 

For More Information:- Fred Hiers

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How To Get Rich In Real Estate – Without Being A Landlord

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Today I’m going to show you, hands-down, the easiest way to add rental real estate to your portfolio.

Don’t worry—you won’t have to leave your computer! Instead of hitting the streets to buy a four-plex or apartment building to rent out, we’re going to purchase a recession-proof real estate income stream straight from your online brokerage account.

And believe it or not, thanks to a current market anomaly, we can snag better deals online right now than we can in person. I’ll explain the details in a moment—including 2 stocks with yields that double what your average stock pays, and double-digit payout growth, too!

First, let me give you the lay of the residential real estate landscape.

A Bait-and-Switch Market

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As I write, apartment vacancy rates across the US are tight—sitting at 6.9%, the lowest level in 24 years!

And if you happen to own a rental abode in the nation’s hottest locales, congrats! Squeezing more income out of it has never been easier. Check out the year-over-year gains in the five best places to be a landlord:

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All this makes buying a residential rental property a no-brainer, right?

No way.

Because outside those scorching markets, fatter rent checks could soon be history: in March, for example, rents nationwide rose 2.4% from a year ago, which is below the 2.7% inflation rate.

Think about that for a moment: if you can’t raise the rent above inflation, it’s the same as a dividend cut!

And the trend is looking worse.

This year’s rise is down from 2.8% in 2016 and way off from 3.7% in 2015. And late-to-the-party developers are about to throw open the doors on scores of new units, clamping another weight onto rent growth.

That leaves you betting on capital gains—but with mortgage rates rising and more rate hikes ahead, there’s no free lunch here, either.

Which brings me back to those great real estate deals I mentioned earlier.

REITs: No-Hassle Real Estate Profits

They’re real estate investment trusts (REITs)—or companies that own or finance income-producing properties.

They’re a way better option than going DIY, because the REIT does all the work—it buys the properties, fixes the broken elevators and collects the rent—and passes the cash on to you.

Plus, REITs don’t pay federal income tax, so long as they payout 90% of their profits as dividends, which means high yields are common in this corner of the market. The best REITs are throwing out reliable dividend hikes year in and year out, too.

Those are two things your average landlord can only dream about.

And there’s one more thing he’s missing: a decent yield! That’s because the average condo in the US:

  •     Sells for $264,000
  • Rents for $959/month (or $11,508/year) before expenses

Which yields the condo investor a paltry 4.4% on his initial capital. No, thanks!

We’re also ignoring the value of our property baron’s time—to fix leaky faucets, find new tenants, collect rent and dozens of other things that come with the job.

For More Information:- Brett Owens