Listing Courtesy of KELLER WILLIAMS REALTY
Good investors tend to be cautious souls. For those who prior to 2007 had never ventured into the realm of Rehoboth Beach real estate investments, the ensuing downturn might have been enough to discourage any curiosity about that direction (even if their other investments had also suffered during the global financial crisis).
Nonetheless, at this juncture those same cautious investors might well assume that the value of real estate investments in the Rehoboth Beach area have rebounded so substantially that it’s now too late to bother looking into them. But as National Public Radio has just pointed out, there's an excellent argument to be made that conditions are now highly conducive for real estate—with real estate investments in Rehoboth Beach being no exception. I could tick off three solid reasons that immediately leap to mind, but stand corrected: NPR points to four:
1. Employment. Employers are hiring anew, and "when companies are hiring, would-be homebuyers feel more confident about taking on mortgage debt." Unemployment rates have (finally!) come down to 5.6%, and with employers having added 252,000 jobs in December, consumer confidence is up nearly 20% over a year ago.
2. Prices seem more rational. NPR points out that from January to October, prices rose 4.5% nationally; a "subdued" gain compared with the 11% burst of the year before. They project that the slower price appreciation may have set the stage for a "buying surge in 2015." From a Rehoboth Beachreal estate investments standpoint, too, gains from last year’s run-up in equities markets combined with mortgage rates still holding below 4% would seem to create the key elements many investors would consider favorably.
3. Demand for rentals is high. There is a healthy demand for rental accommodation across the country due to a tight supply of quality accommodations. USA Today tells us that between 2009 and 2013, the national vacancy rate for apartments dropped from 8% to 4.1%. Over the same period, the effective rent increased by 12% to $1,083. As one potential consequence vis-à-vis Rehoboth Beach real estate investments, new landlords might expect to be more selective about the tenants that they choose. That would mean fewer headaches for landlords with troublesome and slow paying tenants. It is might also portend that investment properties will stand vacant for briefer periods.
4. Millennials are sick of Mom’s basement. NPR points to a Census Bureau report that says only 36% of Americans under age 35 own a home, down from 42% just seven years ago. The recovering employment picture might not enable young people to save up for a down payment for a while yet, but renting quality digs should soon be more doable than was previously the case. That could set the table for a continuing robust rental environment, with Rehoboth Beach real estate investments benefitting proportionately.
NPR’s four reasons for optimism in 2015 are actually only the tip of the iceberg. If you have ever had the thought that it could be worthwhile to take a look at Rehoboth Beach real estate investments, this is a great time of year to give me a call!
Delaware real estate has greatly benefitted from one offshoot of “virtual” technology. Just click on a listing’s “virtual tour” button and a progression of two-dimensional views of the listed property parade across your laptop or smartphone screen.
Those Delaware listing virtual tours are real estate’s first step toward “VR”—Virtual Reality. VR isthe more immersive version that allows viewers to move around within three-dimensional renderings of computer-generated environments. A current example is the TV commercials depicting delighted VR goggle-wearers experiencing animated fictional worlds. They demonstrate two things: 1) the people who don the goggles look as if they truly do feel as if they are surrounded by a mind-bendingly realistic version of reality; and 2) they also look as if they are disconnected from the actual world around them (as when they duck to get out of the way of something that doesn’t really exist).
As it relates to Delaware real estate, there is a slightly different emerging technology. You might say that it’s half-way between today’s virtual tours and full virtual reality. This is “AR”—Augmented Reality—which combines the real and virtual worlds. It allows consumers to superimpose computer-generated images into real life scenes. Some applications are already popping up, with more on the way thanks to support from the latest operating system releases which allow software developers to dream up applications that take advantage of the possibilities.
IKEA is one company that has developed an application to project how any given furniture model would look in a customer’s own home environment. Customers need a copy of the company catalog and access to IKEA’s website. Simply click on the sample item shown on the site, then position the catalog on the floor where the furniture would be placed. Just point your smartphone at the scene and take the picture—the app recreates the scene with the IKEA piece in place, properly scaled with lighting and shadows correctly rendered!
My guess is that it certain that Delaware homeowners will soon have a lot of AR remodeling aids to help them visualize design choices. One countertop manufacturer has already developed an application that shows exactly what different surface finishes would look like atop an existing counter.
House hunters will benefit, too. The Realtor.com web developers are working on “augmenting reality” in the same way that Hollywood adds subtitles to movies. Their “Street Peek” application will allow house hunters to walk down a street, point their smartphone (Android, at first) at a house, and watch a cartoon bubble pop up over its roof with text showing whether it is for sale, the listing price or most recent sale price, and other information drawn from the NAR database. For Delaware new home buyers choosing model home variations as well as for builders eager to show the potential of an unfinished space, the only current drawback is the difference between the look of the real thing and the computer-generated image. Count on that difference rapidly disappearing.
Whether you are buying or selling, I work to keep my clients informed about the coming advances in the tools affecting their Delaware real estate options. Call me! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.