Assetsoft - Blog #real estate recoveryAssetsoft - Blog #real estate recoveryhttps://www.assetsoft.biz/blogs/tag/real-estate-recoveryThu, 16 Apr 2026 18:25:13 -0700http://zoho.com/sites/<![CDATA[Powering Progress: What the ASEAN Power Grid Teaches Us About Infrastructure, Risk, and Real Estate Investment in APAC]]>https://www.assetsoft.biz/blogs/post/powering-progress-what-the-asean-power-grid-teaches-us-about-infrastructure-risk-and-real-estate-invAs global capital continues to flow into Asia-Pacific's real estate markets, institutional investors are shifting how they evaluate long-term Risk and return.]]>

As global capital continues to flow into Asia-Pacific's real estate markets, institutional investors are shifting how they evaluate long-term Risk and return. In this evolving landscape, the ASEAN Power Grid (APG) emerges not just as a relevant infrastructure initiative, but as a strategic blueprint for what's to come, informing us of its significant impact on the region's real estate investment strategies.

The APG's technical goal is to connect Southeast Asia's power systems, enabling cleaner, more resilient energy sharing across borders. However, its strategic implications go further: It exemplifies the intricate web of interconnectedness among infrastructure, capital structuring, and regional cooperation. This is particularly evident in sectors like real estate and logistics, which rely on long-term planning and utility security.

1. Infrastructure-Led Growth: A Core Real Estate Thesis

Historically, transformative infrastructure—ports to high-speed rail—has catalyzed real estate appreciation and reshaped urban investment patterns. The APG continues in that tradition, creating a framework where access to reliable, low-carbon energy could determine location premiums.

In areas like Johor, East Kalimantan, or southern Vietnam—hotbeds of logistics and industrial expansion—grid connectivity and energy resilience are emerging as decisive leasing factors for global occupiers. For developers pursuing build-to-core strategies, the ability to assess infrastructure dependencies early is fast becoming a baseline requirement, not a bonus.

2. Risk and Capital Structure: Lessons from Blended Finance

One of the APG's most significant hurdles is the investment gap: the hesitation of private capital to engage due to policy uncertainty, early-stage infrastructure risks, and regional volatility. To bridge that, stakeholders increasingly turn to blended finance—layering public and private funds to distribute Risk and unlock bankability.

Real estate investors across APAC use similar models, particularly for sustainable developments or ESG-aligned assets. Insurance-backed leases, government green incentives, and MDB financing mechanisms are starting to shape deal structures, especially in secondary markets. This calls for systems that support transparency, multi-source reporting, and performance tracking—key ingredients in layered capital environments.

3. Interconnected Risk = Interconnected Opportunity

The APG underscores how energy reliability, climate adaptation, and policy harmonization are no longer isolated considerations—they now shape the investment viability of entire regions.

· A logistics REIT exploring sites in Indonesia must account for electricity pricing volatility.

· Developers in Vietnam or the Philippines may find that access to the regional grid enhances appeal to multinational tenants seeking renewable energy sourcing.

· Singapore's office and retail portfolios increasingly include energy resilience, through green leases or building-integrated solar networks, as part of their valuation story.

In short, infrastructure risk is real estate risk. The solution isn't insulation but integrating systems, insights, and cross-border frameworks that reflect today's interdependencies.

4. Policy, Data, and System Readiness

The APG depends on wires and transformers, policy alignment, transparent data sharing, and intergovernmental coordination. Real estate is no different.

For investors managing assets across multiple jurisdictions, a consistent operational backbone—whether in financial reconciliation, ESG reporting, or market-entry analysis—is increasingly necessary. Digitally mature firms that harmonize data flows across portfolios are better equipped to engage with complex capital partners, meet regulatory shifts, and adapt to region-specific investment conditions.

5. Why Real Estate Needs a "Grid Mindset"

What energy planners are doing with the APG—thinking regionally, over decades, with systems-level collaboration—is precisely the mindset real estate investors now need.

The rise of EV supply chains, cross-border energy corridors, and decentralized infrastructure means value creation isn't just about the building and the surrounding ecosystem. Understanding these dynamics across ASEAN markets is no longer an option-it's a strategic differentiator that can make or break a real estate investment strategy.

Final Thoughts

The ASEAN Power Grid may be an energy initiative at its core, but it offers broader insights into how infrastructure, capital, and Risk are converging across the APAC region. Real estate is at the crossroads of these forces and needs to adapt accordingly.

Firms fluent in local dynamics and regional shifts will be best positioned to deploy capital intelligently, mitigate Risk structurally, and unlock long-term value. The future of real estate investment in APAC won't be siloed—it will be interconnected.

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]]>Sun, 11 May 2025 23:33:47 -0500<![CDATA[How Donald Trump’s Second Term Could Reshape the Real Estate Industry and Global Markets]]>https://www.assetsoft.biz/blogs/post/how-donald-trump-s-second-term-could-reshape-the-real-estate-industry-and-global-marketsThe beginning of Donald Trump’s second term as president has already sparked significant policy shifts, many of which are expected to have lasting effects on the U.S. and worldwide real estate markets.]]>

The beginning of Donald Trump’s second term as president has already sparked significant policy shifts, many of which are expected to have lasting effects on the U.S. and worldwide real estate markets. His administration’s alignment with Project 2025, aggressive immigration policies, tariff hikes, and foreign policy maneuvers could influence global property investments, commercial developments, and housing markets. Here’s how these changes may unfold and what they could mean for the real estate sector.

1. Real Estate and Domestic Economic Policy

Deregulation and Real Estate Development

One of the major components of Project 2025 is a push for deregulation, particularly in the housing and construction sectors. This could lead to relaxed zoning laws, accelerated permit approvals, and the rollback of environmental restrictions that have historically slowed large-scale real estate developments. Real estate developers may find it easier to initiate new projects, especially in regions under Republican-led governance.

Interest Rates and Inflation Concerns

Despite the Federal Reserve’s traditional independence, Trump continues to insist on lower interest rates—echoing his first-term criticisms of the Fed. During his first presidency, he demanded Fed rate cuts, claiming to better understand monetary policy than central bank officials (as reported by Reuters). If the Fed were to yield to Trump’s pressure in his second term:

  • Short-Term Boom: Lower rates could spur a commercial and residential lending surge, driving up property prices and development activity.
  • Long-Term Risks: Keeping rates artificially low could inflate asset bubbles. When the Fed eventually tightens policy to combat inflation, the subsequent market correction could hit the real estate sector hard.

Compounding these monetary policy dynamics are tariff increases—such as the proposed 25% tariff on steel and aluminum—that could drive up construction costs. Higher material expenses may slow new developments and make commercial and residential projects more expensive, contributing to inflationary pressures that could, paradoxically, nudge the Fed toward raising rates later.

2. Housing Market and Immigration Policy

Tighter Immigration Laws and Housing Demand

Trump’s second term has been marked by stricter immigration policies, including restricting asylum seekers and deploying National Guard troops to the southern border. Reduced immigration flows may lower demand for rental housing, particularly in urban centers with historically significant immigrant populations. Additionally, ongoing labor shortages in the construction industry could worsen, increasing housing development costs and timelines.

Impact on Affordable Housing and Urban Development

With fewer immigrants entering the workforce, some cities relying on a steady influx of new residents could see reduced demand for affordable housing. This might slightly ease competition in specific rental markets—such as Los Angeles, New York, and Miami—potentially stabilizing or even lowering rents in areas experiencing oversupply.

At the same time, areas facing labor shortages may see projects, including affordable housing developments, delayed or scaled back. Public housing authorities (PHAs), which depend on federal funding and local partnerships, could face additional strain if federal budgets prioritize immigration enforcement or defense spending over housing assistance programs. In addition:

  • Potential Funding Cuts: Trump’s administration may redirect or reduce Department of Housing and Urban Development (HUD) budgets, limiting the expansion or maintenance of public housing projects.
  • Regulatory Shifts: Deregulatory measures might expedite private-sector-led affordable housing developments, but without robust federal incentives or protections, the net impact on truly low-income housing remains uncertain.
  • Innovative Financing: If federal support wanes, Cities and PHAs may turn to alternative funding (e.g., municipal bonds, public-private partnerships) to address affordable housing shortages.

3. Commercial Real Estate and Corporate Investment

Trade Policies and Global Supply Chain Disruptions

Trump’s commitment to higher tariffs and an “America First” agenda could disrupt supply chains for real estate developers dependent on foreign materials. Tariffs on steel, aluminum, and other construction inputs can significantly increase commercial building and infrastructure costs.

Retail-focused real estate may also feel the pinch if tariffs on consumer goods reduce consumer purchasing power. However, industrial and logistics real estate could benefit as companies relocate or expand U.S.-based manufacturing to avoid tariffs, driving demand for warehousing and distribution centers.

Corporate Relocations and Tax Policies

Corporate tax cuts and incentives for domestic manufacturing could prompt companies to move operations to states with favorable tax regimes, such as Texas and Florida. This shift would drive up demand for commercial real estate—office space, industrial parks, logistics facilities—in these states. Meanwhile, higher-tax states like California and New York could see corporate departures and a softening in local commercial real estate markets.

4. Global Real Estate and Investment Impacts

Foreign Investment and Market Confidence

Trump’s foreign policy decisions—including confrontational stances toward China and the European Union—may deter foreign investors from buying U.S. real estate. Chinese, Middle Eastern, and European capital, which has historically flowed into major U.S. markets (New York, San Francisco, Miami), could slow as investors seek less politicized and less tariff-heavy investment climates.

Geopolitical Tensions and Capital Flows

Heightened confrontations—including a potential diplomatic standoff with South Africa over mineral resources—could disrupt global supply chains for construction materials. This uncertainty may lead developers and investors worldwide to adopt a more cautious approach, slowing international real estate transactions.

In Europe, concerns about U.S. negotiations on Ukraine without European involvement could fuel economic uncertainty, potentially affecting residential and commercial real estate markets. Trump’s support for Israel’s Gaza policy may also influence Middle Eastern investment flows into the U.S. real estate sector.

5. The Future of Sustainability and Smart Cities

Environmental Rollbacks and Green Building Initiatives

Trump’s re-exit from the Paris Climate Agreement has signaled a potential rollback of federal support for green energy and sustainability initiatives. While this could slow the momentum of LEED-certified and net-zero developments at the federal level, state and local governments—especially in progressive, blue states—will likely maintain or even strengthen their green building regulations and incentives.

Technological advancements in smart city infrastructure might still progress, driven by municipal-level initiatives and private-sector innovation. However, the absence of robust federal backing could limit the speed and scale of such innovations.

Conclusion: Adaptation and Strategy for Real Estate Investors

Trump’s second term presents opportunities and uncertainties for the real estate sector. While deregulation and potential Fed rate cuts could spur short-term growth, tariff pressures, labor shortages, and geopolitical tensions could offset those gains in the long run.

Key takeaways for investors:

  1. Deregulation vs. Rising Costs: Developers may find building easier but face higher material and labor expenses.
  2. Fed Rate Uncertainty: If the Fed yields to Trump’s demands for lower rates, a short-term real estate boom could give way to a longer-term correction if inflation surges.
  3. Immigration and Housing Markets: Tighter immigration policies could reduce rental demand in urban centers while exacerbating construction labor shortages.
  4. Affordable Housing Pressures: Reduced federal focus on housing support may strain PHAs and shift the onus for affordable housing solutions onto state and local governments.
  5. Commercial Real Estate Realignments: Corporate relocations to tax-friendly states may fuel growth in those regions while leaving high-tax states vulnerable to slowdowns.
  6. Foreign Investment Hesitation: America-first trade policies and geopolitical tensions could deter overseas buyers, particularly in luxury and commercial segments.
  7. Sustainability Persistence: Federal environmental rollbacks may hamper nationwide green building progress, but states and private entities could continue pushing for sustainable development.

Staying informed and agile is essential in a landscape shaped by political influence, evolving monetary policy, and global economic shifts. Real estate investors should closely monitor policy changes, adapt to emerging opportunities, and hedge against inflation risks and potential market corrections. By crafting flexible strategies and leveraging state- or city-level incentives, stakeholders in the real estate industry can better position themselves for both the immediate impacts and the longer-term realignments of Trump’s second term.

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]]>Mon, 17 Feb 2025 11:17:05 -0500<![CDATA[6 Essential Features for Commercial Real Estate Broker/Agent Database ]]>https://www.assetsoft.biz/blogs/post/6-essential-features-for-commercial-real-estate-broker-agent-database6 Essential Features for Commercial Real Estate Broker/Agent Database - all you need to know.]]>

In the commercial real estate sector, the information does not always flow freely. Very few brokers are ready to openly disclose their database of commercial properties. But the CRE database is a complicated avenue. The data is bulky, unlike small-scale residential real estate.  To be more precise, the majority of CRE brokers maintain their confidential customer and property databases distinct from those of their coworkers and office mates. 

 

A CRM serves as the repository for any commercial real estate database. But every real estate broker/agent uses real estate CRM software. Many businesses fail to make the right technology selection, hence their database fails, and so does their CRM system. That is why market reports say that more than 30% of CRM systems fail during implementation. Inadequate database features can kill your tech usage.  

 

But brokers and agents accomplish significantly more with the right CRM and database features than they can using an excel sheet or other crude old-school methods. The database helps because it allows them to have access to industry-specific analytics and other configurable features. But what characteristics are necessary for efficient lead screening, automation, and recommendations? 

 

Look through the list we've put together for CRE agents and brokers. You will have a comprehensive idea of the crucial aspects and essential features of a commercial real estate broker/agent database after reading this article. Let us dive in! 

6 must-have features of a CRE Broker/Agent database 

These are the 7 features of your CRE database that you can not miss in your system. Update your system with them right now! 


  1. Database administration system  


The top feature for brokers' and agents' databases is to have a database administration system. This helps them to gain a competitive edge in managing their own CRE database and allows autonomy within the system and office.  

 

Features of commercial real estate information administration and management can help streamline the following.  

 

  • Data duplication or fraud detection. Or red flagging discrepancies in big data. These can be very well ignored or left out in excel sheet analysis. Why? Research says more than 90% of excel sheets we use have major faults in them.  

  • Custom logs that are prompted by actions may be sorted and analyzed accordingly. These actions may include things like adding or removing new properties and uploading or deleting customer details.  

  • Uploading and amending property data manually and automatically.  

  • A mass data upload feature where you can integrate and import data from spreadsheets in a few clicks and automate their sorting.  

  • Automatically putting together targeted lists.  

  • Real-time availability management, 

  • Following up with potential contacts. Sending automated notifications.  

  • No restriction on the number of attachments or media references.  

 

  1. Database filtering  

There should be a streamlined database filtering and search option. The list of features that this should include are, 

  • Use keywords, phrases, and terms to search for inquiries. 

  • the possibility to save results for later use without having to recreate the query to retrieve a specific piece of information. 

  • Check, search, filter, and sort each property record under your portfolio to see any relevant requests, vacancies, transactions, and rentals for that particular property. 

  • The option to add and structure required fields to PDF or Excel documents, with the versatility to alter the fields you're working on. 

  • Segmenting searches according to buyer intent, customer priority, type of sale, sale possibilities, property type, and more.  

  • search criteria that can be changed by factors like location, price, property features, availability, listing status, parking type, and more.  

Research says that filtering data helps with better data security, improves IT work efficiency, and reduces redundancies in business processes.  


  1. Data analytics tools 

CRE has a bulk amount of data, which can be intimidating for employees to process, sort, and then analyze. That is why you need a database feature where the raw data is automatically analyzed. It must provide you with comprehensive and simplified reports so that all stakeholders can get involved. The right CRM can easily do this. 

 

From analyzing market data to making reports about customer data, you must have an analytics tool that automates these processes. It can also track and analyze data about past sales, marketing strategies, transaction pipelines, and more.  


  1. Data importing system  

Even though you use a new CRM system to manage your database, does not mean others will do the same. Like your vendors and customers can easily send in data on excel sheets and PDFs. So, your database must have a data importing system that can import and sort data in a few clicks. If you have to manually enter every data into your database then this technology selection becomes useless for your team.  


  1. Agent profiles and analysis  

Your database must also have individual profiles for each agent and broker. This will help you get quick glances at their profiles, sales reports, previous work, and performance. This will help you understand which agent is performing better and who is making you lose business. You can constantly keep track of their work activities and the results they bring. Once you have this information in place you can work on your strategy and leadership to make necessary changes.  


  1. Complex information portal for all properties  

CRE portfolios are generally very complex. Hence your database needs features to work on these, 

 

  • Customized alerts for newly listed properties, price changes, image updates, changes in property availability, and more.  

  • Specific listing details like ownership data, area information, expanses, or rework details, and more.  

  • Direct communication with a broker using the contact page or by phone. 

  • Customer feedback and ratings. 

  • Parallel comparison of properties.  

Choose a Real Estate CRM that Works for You

Even though many CRM system selections and implementations fail, the right database features can ease the matter. That is why more than 65% of companies across industries now prefer to work with CRM software. Are you worried that your real estate broker/agent database does not have enough features and your CRM is not doing enough? Get in touch with our team at Assetsoft.  

 

At Assetsoft we have multiple industry experts who have over two decades of experience in helping real estate businesses make business decisions. From software feature customization, database management, technology selection, and implementation, we do a lot. Want to know more about our services? Book a free consultation call with us and talk soon for more.  

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]]>Mon, 03 Apr 2023 20:49:15 -0500<![CDATA[Post-pandemic travel - leisure or business? How does it impact real estate? ]]>https://www.assetsoft.biz/blogs/post/post-pandemic-travel-is-leisure-or-business-how-does-it-impact-real-estateThe whole world is learning to adjust to the new normal of the post-pandemic era. But the two-year-long pandemic has left some permanent marks on the ]]>

The whole world is learning to adjust to the new normal of the post-pandemic era. But the two-year-long pandemic has left some permanent marks on the economy and businesses. The travel and hospitality industry was one of the worst sufferers during these two years and underwent many changes too. Though the hospitality industry is bouncing back, it will take a lot of time to reach its original state. 

 

Local travel is bouncing back faster, but international travel is still lagging behind. According to UNWTO data, international travel is 62% behind the 2019 travel data. This has seriously impacted the industry, and many more are to come.  

 

Beyond this, the travel industry is mostly divided among leisure and business travel; which one is bouncing back faster, and how have they changed? What does it mean for the travel real estate industry? Read this article to find out more details about it.  

What are the post-pandemic travel trends? 

According to market reports and data, there are many post-pandemic travel and hospital trends. Here are a few that you can take into account. 

 

  • People are now mixing business and leisure travel. How? Workation and long-stay destinations and packages are becoming popular due to many big companies offering complete remote work options. That is why you need to imagine your hotel real estate in a way that you can offer dedicated workspaces and also offer leisure options under the same roof. 

  • Health and wellness travel has become very important since the pandemic has made many people focus on their personal well-being. You can start building your hotels around natural places and promote health and wellness tours to boost business. 

  • No-contact check-in and check-out experiences inside hotels have become a big concern to ensure health safety. You can use a software system or app to automate this process. 

  • The present traveler cares about sustainability and wants to ensure that their travel partners (hotels and restaurants) are eco-friendly like them. Things like zero net energy properties, in-house waste management, or such things can become major crowd pullers. University of Central Florida’s research data says that more than 75% of people from the young generation are willing to take action to promote this sustainable hospitality trend. Even 51% of older generations are ready to join the bandwagon.  

What are the challenges? 

The change was sudden, and the demand for these changes was high; many hotels did not have the budget to make the necessary changes. Many hospitality industry folks lost their jobs, and many hotels had to permanently close shop due to a lack of business and file for bankruptcy. Ensuring proper sanitation, staff, and guest safety during the pandemic was another burden and needed an additional budget that most lacked.  

Where does leisure travel stand? 

In 2021 itself, more than 40% of Americans were planning for leisure travel during summer. According to current US Monthly Travel Data Reports, more than 48 million Americans traveled during the 4th of July week. That is a 4% rise from 2021 statistics but still down by 2% from 2019 pre-pandemic data. So, we know leisure travel is on the path to recovery, but it has yet to completely bounce back to its original state.  

Where does business travel stand? 

According to the US Monthly Travel Data Report, more than 89% of companies have allowed national business/corporate travel. The budgets are getting back, which is one positive news for the travel industry. But international business travel was another money puller; without that getting back in shape, it will be a tight journey ahead. According to the US Monthly Travel Data Report, more than 89% of companies have allowed national business/corporate travel.  

How automated management can help deal with these trends? 

No matter which side the travel and hospitality industry trends are going, leisure or business, you need to manage your assets better to stay in control. What can you do? 

 

  • Automate back office management - this can include inventory tracking, financial accounts management, employee management, etc. 

  • You can also digitize the customer experience. From self-check-in services to online payment options, a lot can be done to reduce contact with customers to follow all COVID protocols. 

  • You can also digitize and automate the customer hotel viewing and room renting experience. You can start using VR services and tours of your hotel rooms to help customers live the room experience without actually stepping foot in it.  

  • Asset management can also be automated. You can remotely update or renew your subscription of assets or automate scheduled maintenance work. Using the right technology selection, you or your property managers do not have to visit the property to manage it seamlessly.  

  • Businesses also have to offer last-minute flexibility in bookings to get more customers. McKinsey data also said hospitality companies need to reimagine how they see business to ensure better business. Due to the pandemic, travel rules change quite often, and customers lose a lot of money. If you offer flexibility, your business will fly better.  

Automated management with the latest software 

Many software in the market can help you automate your hotel or restaurant management work. From online payment collection, asset management, and back office accounting to data analysis and financial management, a lot can happen with this software usage. Integrating the latest software like Yardi easily automates many of your management tasks. 

 

But if you are new at using technology, it is always better to get outsourced help from a tech consultant help in this transition. You can also use CRM software like Zoho to personalize your customer relations and gain customer loyalty. Zoho offers services like e-mail marketing and other such features to cater to individual customer needs and market your business for optimal results.  

Start your SaaS integration with Assetsoft 

Dealing with and understanding new technology can be a daunting task that might not come easy to non-technical people. If you are someone looking to integrate the latest tech but do not know where to start, we are here to help you. From real estate asset management to restaurant and hotel management, the right software and technology selection can streamline a lot of your work. And we can help you with that. 

 

Get in touch with our team to start the journey today! 

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]]>Sat, 07 Jan 2023 07:18:58 -0500<![CDATA[What will the Housing Market Look Like in 2023? What are the experts saying? ]]>https://www.assetsoft.biz/blogs/post/what-will-the-housing-market-look-like-in-2023-what-are-the-experts-sayingAre you a real estate business manager or owner who wonders what the market will look like in 2023? As the year comes to an end, many expert opinions and market reports are coming our way.]]>

The low mortgage rates during the pandemic and low income of one section of people helped a lot of Americans buy homes at cheaper rates. But this sudden boom was only short-lived. Eventually, this market had to go down because the number of houses and land was not increasing with demand. The housing inventory is overwhelmed and is again driving up the average home prices.  

 

According to Fortune’s news report and market analysis, this sudden boom in demand during the pandemic led to a severely low inventory. It was so low that the records hit a 40-year low. Statistically speaking, another major reason was that millennials became of home buying age during the pandemic. With remote work, this generation started saving a lot of funds, and many went to invest this in buying houses.  

 

This sudden rise in demand also led to more investors coming into the housing market to start bidding wars. The prices of homes started growing sharply, and the rising inflation and Fed rising rates also led to a steep rise in mortgage rates. All of these factors together shook up the whole housing market in America for both 2023 and 2024. Experts believe that the pandemic boom has left a long-term impact and the ripple effects are here to stay. 

 

Are you a real estate business manager or owner who wonders what the market will look like in 2023? As the year comes to an end, many expert opinions and market reports are coming our way. Read this article to learn every detail about the housing market predictions for 2023 and plan your strategy and leadership to benefit from these predictions.  

What is the present housing market in 2022? 

Before we dive deep into the housing market predictions for 2023, we need to know the present conditions of the market to throw light on the future. What does the present market in 2022 look like? According to CNN news reports, the home prices in the US reached a record high in June; the median price touched a whopping $416,000. But the same predictions also believe that now the prices will increase slowly, unlike in the beginning months of 2022.  

 

The price has slowed down comparatively, even though the prices reached a record high. The increase in June 2022 was only by 13.4% for existing homes, whereas the increase was more than 23% in June 2021. The prices of newly constructed homes are actually going down a little and are stabilizing the housing market, which is acting as a good sign for real estate companies.  

 

But existing homes only make up 10% of the total housing market in the USA; on the other hand, existing homes make up the rest 90%. Though the price rise is slowing down, it is still at a record high, putting pressure on existing inventory. Many first-time homebuyers are finding it difficult to buy homes. 

 

Even the mortgage rates have gone up steeply. So the homes that were affordable for the millennials at one time are no longer within their range. This has led to a lot of people backing out on home deals at the last moment. CNBC reports found that the home cancelation rates at the last moment are at a peak and are now at their highest since the onset of the pandemic. Rising inflation and mortgage rates are being blamed for these. But will things change for the better in 2023? Let us find out.  

Housing market predictions for 2023. Will prices drop? 

Zillow’s housing predictions and market survey believe that the housing prices in 2023 will slow down significantly. According to market reports, the current rates are at a steady 16% rise in prices. But Zillow also predicts that home prices will not increase or decrease at the same rates in every region across America. There are vast differences based on region, and you need to become aware of which ones will impact you more. 

 

Fortune reports on Zillow predictions say that the average home prices in the next twelve months are likely to rise only 2.4%. Whereas a few months back, due to an unstable market, they made a prediction that the prices would rise by more than 7.8% in 2023. As we come nearer to the year-end, the predictions are changing, and they seem to be changing for the better. If prices drop, sales are bound to increase and help real estate businesses stay afloat in the market.  

 

But why did this change of prediction happen? Experts feel that this mostly happened because of the housing recession that is setting in due to low inventories and low economic transaction rates.  

What will the overall American housing market look like? 

According to Fortune news reports, they believe that millennials grew up at the worst time to buy their first houses. Millennials now account for 43% of the total home buying demographic, but many of them can not dream of affording their own homes. Inflation is rising, many people are losing their jobs due to the pandemic, and mortgage rates are skyrocketing. Combined with these factors, most millennials will find it very hard to own their own properties in the coming years.

Mortgages may still remain high 

The mortgage rates jumped 2% in 2022, mostly because the Feds increased their borrowing interest rates. This made even affordable houses quite unaffordable throughout 2022. But CNBC reports believe that as 2023 proceeds, the rates will subside a little and become stagnant somewhere around an average of 4.5%. But what the future holds is yet to be seen. Though 4.5% is much lower than the current rates in 2022, it is still much higher than the general average. So how this impacts home sales remains a matter of debate.  

Preparing ahead of time for the 2023 housing market  

Have you prepared your strategy and leadership to go into the new year and grow and flourish your business in 2023? The housing market predictions are a mix of positives and some negatives. So you need to work around or with these predictions to plan your business strategy for the upcoming year. If you are a little overwhelmed with the process and the volatile market around you, we can help. 

 

Get in touch with us to know more! 

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]]>Fri, 18 Nov 2022 07:06:01 -0500<![CDATA[Homebuyers are canceling deals due to the rising inflation. How can you handle this? ]]>https://www.assetsoft.biz/blogs/post/homebuyers-are-canceling-deals-due-to-the-rising-inflation.-how-can-you-handle-thisRedfin real estate market research and survey reports have found that more than 60,000 house deals fell through during August 2022. This means that 14 ]]>

Redfin real estate market research and survey reports have found that more than 60,000 house deals fell through during August 2022. This means that 14.9% of homes went under contract. In the previous months of May and April, the rates were 12.7% and 11.2%, respectively.  

 

There is a steep rise and hardly any indication of a slowdown. The rates rise every day, and homebuyers are pulling out of set deals. Reports say this is the maximum number of contract cancellations since the beginning of the pandemic. 

 

Even during the peak pandemic times, home sales were not this low because the mortgage rates were really low. Many real estate investors took these opportunities and bought houses. But the present real estate markets have become extremely volatile and are making investors second guess before entering the market.  

 

So, what are the factors causing this?  

Why are homebuyers canceling deals? 

There are multiple reasons why more and more homebuyers in America are pulling out of deals and canceling at the last moment. What are these? Check them out below.  


  • Higher and unaffordable mortgage rates 

 

The mortgage rates in the USA constantly fluctuate, and the rates are increasing on most days. This leads to most dream houses of homebuyers becoming unaffordable. When the mortgage rates rise, the loan amount that homebuyers were previously eligible for also falls through. Money lenders also refuse to make payments, and the deal gets canceled at the last moment.  

 

According to Bankrate’s reports, the 30-year mortgage rate is at 5.59 % at present. In contrast, this value had gone down below 3 % during the pandemic and had pushed up house sales. The Fed raised its interest rates to tackle the rising inflation. As a ripple effect, mortgage rates saw a steep rise, making most houses unaffordable for average Americans.  


  • Rising inflation rates 

 

According to the US Inflation Calculator reports, the inflation rates in July were at 8.5%, whereas the rates in June were at 9.1%. That was one of the highest since 1981. The inflation rates are rising every day and have been one of the highest in the last four decades. But the income and economic transactions of people are not rising this fast. So, most people can no longer afford the house they wish; hence, many are pulling out of deals. 


  • The economic slowdown due to pandemic  

 

During the pandemic, there were more than 16.9 million unemployed people in the USA. According to Bureau of Labor Statistics governmental data, more than 57% of them were laid off during the pandemic alone. Most of their employers closed down due to lack of work, or some even filed for bankruptcy and closed shop, leading to these huge unemployment rates.  

 

Many Americans are still out of jobs after the pandemic, or some are still working with pay cuts causing a serious economic slowdown. Even if some of these people had made deals on their dream houses, they are pulling out due to low income and rising prices. Though the government provided a lot of aid to support these people, this aid is never enough for people to invest in a house.  


  • Rising home prices  

 

According to the US News reports, though the sale of houses in the USA is going down due to multiple reasons, housing prices are still really high. In May 2022, the price rose more than 20%. Another US News report said that the sale of existing homes fell by 5.4% during June alone. The rising prices and increasing inflation are pushing people to get out of deals at the last moment.  

How can you strategize to make sales during these times? 

The times are tough for any real estate owner, be it commercial or residential. Housing prices are constantly increasing. The inflation rate is also rising, and mortgage rates are rising, whereas average income is going down. This makes housing quite unaffordable for average Americans. 

 

But if you are a real estate business owner, you need to plan your strategy and leadership in a way that you can stay afloat even in this volatile market. Here are a few tips to get on with the process.  


  • Offer incentives 

 

Send personalized offers to your valuable customers and potential leads. Make them feel valued, and show them listings within their budget or offers they can not refuse. Why? McKinsey data has found that personalized offers are the key to making people buy more. 76% of consumers said personalized communication makes them like a brand much more. 78% personalized content makes them repurchase from brands. And 78% of them are ready to recommend brands to others for personalized offers and content.  

 

Bring in that added personalization and customization of all your listings and pay individual attention to each customer to make them buy.  


  • Offer buyers something extra than just properties 

 

Add a little extra to each property you want to sell or rent out. What can this be? Send personalized gifts on customers' birthdays/anniversaries. Offer furnished apartments for a lower price, or give a community tour to potential buyers. You can also help them with additional information about related property issues, like finding utility products around the community. 

 

You can also start writing educational blogs about the services you provide and your properties. This extra effort will provide a little something extra for your customers. It will make the property buying process a humane and holistic one rather than just a mechanical sales deal.  

Get the Right Advisory Solutions with Assetsoft

If you do not have an effective project management system and marketing strategy, and leadership plans, then your business can easily go down a slippery slope.  

 

To not let this volatile market make your business suffer, help us help you stay afloat amidst all turmoils. We can take care of the strategy and leadership work while you take care of the other core matters of business. Know more - contact us today! 

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]]>Wed, 05 Oct 2022 14:01:43 -0500<![CDATA[Energy Efficiency in Buildings can Help Reduce the Carbon Footprint of Real Estate ]]>https://www.assetsoft.biz/blogs/post/energy-efficiency-in-buildings-can-help-reduce-the-carbon-footprint-of-real-estateAre you a real estate owner or property manager wondering about the energy efficiency of your buildings and how you can help? Read our blog to find out the latest trends, driving factors, and what steps you can take to make your buildings more energy efficient.]]>

According to popular belief, the whole blame for pollution and carbon footprint falls on the increasing population, and regulator bodies come up with solutions to declutter the urban habitat. But ACS Publications did a research study and published reports of one particular urban society in Finland and found some fantastic data. Their studies showed that the same number of humans living in new energy-efficient buildings had a lesser carbon footprint than the same number of people living in old existing buildings.  

 

This clearly indicates that the problem of real estate carbon footprint is not just the humans residing in it. Real estate businesses need to rethink their business strategies and take energy efficiency into account to address this problem.  

 

Are you a real estate owner or property manager wondering about the energy efficiency of your buildings and how you can help? Read our blog to find out the latest trends, driving factors, and what steps you can take to make your buildings more energy efficient.  

The Present Carbon Footprint of Real Estate 

Over 40% of global carbon emissions come from the real estate industry; this is not just from buildings. This also includes construction, operations, and construction materials. Within this, 70% of it is caused by building operations, and the rest, 30%, comes from construction. As a result, the strategy and leadership at your company need to rethink both operations and construction work to do their part in helping the environment and making real estate more sustainable.  

What are the factors pushing for energy efficiency? 

Multiple factors are pushing the real estate industry into making their buildings more energy-efficient. Here are the most important ones that you need to pay attention to.

  

  • Pressure from real estate investors 

 

Deloitte reports on the Sustainability Accounting Standards Board agreements state that environmental, social, and governance (ESG) factors are major driving factors in present real estate investments. More and more investors want to align their real estate portfolio according to environmental standards and do their part in helping sustainability. According to Climate Action 100+, more than 500 global investors insist that companies make net-zero strategies and pledge for a better tomorrow.  


  • The millennial homebuyers 

 

Millennial homebuyers are now driving the majority of the real estate market, and they care about sustainability more than the previous generations, and builders are taking it seriously. According to the Architect Magazine reports, about 15% of real estate developers have started using high-performing home appliances to appeal to the millennial crowd and drive sales.  


  • Governmental policies 

 

Many governments across the globe have started to adopt net-zero emission policies, and they have set certain goals and expectations from the businesses in their nation to achieve this. Like the UK became the first major nation to pass a net-zero emissions law to achieve zero emissions by 2050. New Zealand joined the bandwagon and passed a “zero-carbon” law to do its part in helping the environment. The expectations from real estate companies to join this movement are not set in stone, but it is still a significant factor driving the industry.  

Decarbonization can be costly 

Decarbonizing the whole real estate industry can be pretty costly because there is already a lot of existing real estate out there. Many buildings within that are ancient construction and heritage structures. These are not only gigantic but also hardly have any energy efficiency, to begin with. Revamping the whole building, from changing appliances to conducting energy audits to determine which areas are causing maximum energy loss, is quite an enormous project. But in the end, both tenants and landlords can benefit from it in the long run. 


How so? 

 

  • Having energy-efficient buildings will bring down the average operating costs of the buildings. 

  • Your electricity bills will go down subsequently both inside your homes and in the common areas of your buildings. 

  • It will also make your living habitat more eco-friendly, to begin with. 

How to achieve energy efficiency 

So, energy efficiency is not just a utopian dream; there are many viable ways to get the ball rolling. Here’s how.  


  • Rethinking new construction  

 

New real estate and building construction can rethink how they imagine a business. There are many different initiatives in the USA to construct green buildings and eco-friendly communities in order to help the environment. From using sustainable materials for construction to tracking the energy levels of the project to help make projects more eco-friendly. Even the use of the latest selection of technology in project management can help in reducing the carbon footprint. Home tours, tenant onboarding, property management, and such things can be conducted virtually without constantly visiting the sites.  


  • Renovating old constructions 

 

Old buildings are significant energy-draining assets due to multiple factors like old appliances and non-sustainable construction materials. Existing real estate can be renovated according to new energy standards to help sustainability.  


  • Energy star appliances 

 

Real estate owners and property managers can start using Energy Star appliances in their homes to get energy-efficient buildings and also attract new-age customers. This will help save a lot of money and also help the environment along the way.  


  • Periodic energy audits  

 

Excess energy drainage is never visible to the naked human eye; it is essential to conduct energy audits to determine which portions of your buildings are causing major energy loss. Professional energy auditors can put up drones with thermal cameras to get the job done and get you credible reports on it.  


  • Go digital with construction management 

 

Due to digital advancement in the real estate world, there is a lot of new technology to digitize all kinds of work in the industry, including construction management. You can remotely monitor the construction of your buildings and save fuel on travel. A construction management software like Procore will also help you keep up with all energy efficiency standards and track their progress based on pre-set guidelines.  

Wrapping Up 

Want to do your part in helping the environment by making your real estate buildings more energy efficient? The Assetsoft team can help. We conduct detailed energy audits, and we have partnered up with Quantifiable Energy Audit Tech (QEA) to get the best results for your business. We will give you in-depth reports on the energy efficiency of your buildings and will help you in rethinking your future plans too.  

 

Talk to us today to know more about our services!  

Get Started Now
]]>Fri, 05 Aug 2022 20:25:00 -0500<![CDATA[How Retail Real Estate is Recovering from the Pandemic ]]>https://www.assetsoft.biz/blogs/post/how-retail-real-estate-is-recovering-from-the-pandemicMore business and new transformed consumer behaviors were major trendsetters for the retail shopping industry. As a ripple effect, the retail real est ]]>

More business and new transformed consumer behaviors were major trendsetters for the retail shopping industry. As a ripple effect, the retail real estate industry also changed and suffered quite a setback during the two years of the pandemic.  

 

Managing such retail real estate businesses became even more challenging given the low revenue in this industry for the past two years. So, how is this industry coping with the new changes? Is it recovering, or is it still grilling under the after-effects of the global pandemic?  

 

Our team at Assetsoft has years of experience in working with real estate companies and keeping up with trends to help in better project management. We have used that experience in curating this article.  

 

Here we discuss the pre and post-pandemic changes in the retail industry and how it in turn reshaped and changed the real estate business. Read on to find out what it means for your real estate company and how you can rethink your strategy and leadership to steer through these tough times in business.  

The effect of the pandemic on retail stores 

According to Forbes news reports, consumers in the USA spent more than $211.5 in e-commerce in 2020 itself. Most of this came from a shift from retail shopping, and that crowd steered towards e-commerce due to restrictions in travel and general social distancing norms. Though these trends started in 2020 during the pandemic, some of these are here to stay and reshape the retail industry. Here’s how.  


  1. Touch-free shopping 

 

When it came to shopping, the most significant aspect of it before the pandemic was to see and feel things before investing money in them. Now customers readily buy home utility products to homes themselves on online platforms. 


Credit or debit card purchases at retail outlets are becoming obsolete, and no-touch digital payments are rising. Like Amazon has launched its new no checkout shops where you can simply pick up the stuff you want and walk out without any interaction or payment. How does it work? The money is deducted from your bank or Amazon wallet without you having to worry about direct human contact. Many retail stores started using their stores as storage units and started selling their goods online to beat the rising e-commerce sales.  


  1. Everything stores are trending 

 

Mass-scale retailers who do not specialize in one type of product but sell a wide variety of products are trending in the market. Stores are now expanding their products from just groceries to selling utility products and merchandise all under the same roof to attract more customers. Why? Simply because customers tend to go out as less as possible due to the pandemic, and when they do, they want all their shopping needs fulfilled in one place.  


  1. Malls and stores take a hit 

 

Malls and other retail stores like clothes and electronics were categorized as non-essentials during the beginning of the pandemic and had to close shop. One of the biggest mall owners in the US, Simon Property CEO David Simon, said that he lost worth 10,500 days of shopping business right after closing down due to the pandemic. It was getting harder to make rent as most shops were not selling anything to be able to make rent. It became an extremely volatile situation for the Commercial Real Estate owners and property managers. David Simon also mentioned that he had only collected 71% of the rent in July 2020, and 29% of it was due to the COVID-19 crisis and lack of business.  

 

E-commerce vs retail shopping during pandemic 

When most retail shops took a hit during the pandemic, e-commerce was thriving. People shopped from homes and that saw a major rise in consumer buying tendencies. According to NCL survey reports, e-commerce saw a 44% rise in year-over-year sales, whereas retail saw a 3.5% decline in sales. How did this affect Commercial Real Estate (CRE)? 

 

Warehouses soared in demand due to this rise in e-commerce sales. According to the Bloomberg news reports, companies like Amazon, Walmart, Target, and more expanded their warehouses three to four folds within the last two years of the pandemic. This helped many CRE owners to stay afloat in this crisis-driven market. Though their retail shop tenants were not able to pay rent, their warehouse tenants were increasing their demand.  

What recovery looks like for the retail 

Everything is not so grim in the long run. Even retail shopping quickly adapted to new trends to keep itself relevant in the market.  

 

Hybrid shopping is becoming an everyday reality, and retail shops need to follow this trend. People get a glimpse of the products on online sites and then make the final purchase inside shops or the other way around. Or like Amazon started its no-checkout stores where there is no human contact during retail shopping, yet it offers the experience of in-store shopping. Retail shops have to bring in digital innovation and proper technology selection to advance in the post-pandemic era.  

Retail is moving on from the pandemic 

The commercial real estate business, when it comes to retail shops, has suffered more during the pandemic. Many companies even filed for bankruptcy due to the pandemic. Are you a commercial real estate owner struggling to maintain all of the properties under your portfolio, make rent, and still stay afloat in these crushing times? You need to start using the proper technology selection in project management to streamline your work. Digitalize your processes, invest in real estate that is in demand like warehouses and slow down on the construction of new retail spaces like malls or shops. 

 

It is time to rethink your strategy and leadership; take a moment to regroup and revisit your business plans and customize them according to the present market trends. The real estate market and economy, in general, have become very unpredictable since the pandemic so you need to stay constantly updated and quick on your feet to work around these problems.  

 

At Assetsoft, we assist in planning strategy and leadership for real estate companies; we also offer expert project management services. Our tech experts can also help you with the right technology selection to streamline your property management tasks, be it commercial or residential real estate.  

 

Wondering how we conduct our work and what other services we offer? Speak to us today to get more details.  

Get Started Now
]]>Wed, 03 Aug 2022 08:32:00 -0500<![CDATA[8 CRE Trends that Will Drive the Real Estate Market in 2023 ]]>https://www.assetsoft.biz/blogs/post/8-cre-trends-that-will-drive-the-real-estate-market-in-2023Commercial Real Estate (CRE) was and always has been a dependable form of investment and business. What will the market look like next year?]]>

Commercial Real Estate (CRE) was and always has been a dependable form of investment and business. The prices and market for CRE hardly ever went down without any significant economic incident. But the recent two-year-long pandemic and the associated economic turmoil made the CRE market quite volatile.  

 

Many changes in interest rates, supply chain issues, low demand for office spaces or retail shopping areas, and rapid changes in technology selection in the real estate sector have added to this volatility. These rising trends are full of challenges that come with their own set of opportunities, and you can get on top of these trends with the correct planning. But there are no trends you can not handle with a bit of change in your strategy and management systems. 

 

Even though all the uncertainty, market reports have found a 4% rise in the CRE market in 2022, and there are multiple factors affecting this rise. Read this blog to understand how you can steer these CRE trends to work in your favor and make them positively impact your ROI. At Assetsoft, we have carefully curated a list of the top 8 CRE trends dominating the market in 2023.  

These 8 trends will drive the CRE market 

We are already halfway there in 2022, and these trends are here to stay and make long-term changes in the CRE biz. Check them out and take them into account while planning your strategy and leadership to better your business and management plans.  


  1. Retail is being reshaped  

 

Retail shopping was badly hit during the pandemic due to all the social distancing norms and travel restrictions. Leisure shopping or shopping for non-essentials took a backseat. Since then, malls and other retail outlets have been grilling under pressure and are yet to bounce back to their original form. But there is a high inclination toward retail being reshaped. People are now going for hybrid shopping options where they choose a product from a company’s online website or app and place an order. Later they drive by the retail outlet and pick up their order. For this new type of business, retail shops need to replan their inventory management and get in new storage spaces to handle this extra load.  


  1. Multi-family homes are in demand 

 

There is a rise in demand for multi-family homes. Why? Remote work is slowly being removed from most company policies, and employees are called back to offices. Many first-time renters, fresh graduates, and college students who had moved back home or to the suburbs during the pandemic are now heading back into the cities. They are all looking for cheap rental options, and multi-family homes are the answer.  


  1. The industrial sector is consistent 

 

Industrial construction in CRE is still consistent as before. With the high demand for e-commerce goods and to produce them and get them delivered, the industrial sector real estate remains popular. Factories and warehouse spaces are in high demand to make and store the added orders coming in through online shopping portals. Forbes reports back up these changes; e-commerce saw a 14.2% rise between 2020 to 2021 and a 50.5% rise between 2019 to 2021. Among these, Amazon accounted for over 40% of the sale. This is why Amazon went on to increase its number of warehouses around the country.  


  1. Tourism real estate to rebound 

 

Tourism and hospitality real estate are slowly but steadily getting back in business. When the pandemic hit the world, this industry was one of the worst-hit. Travel is treated as one of the most non-essential, and both leisure and corporate took a backseat in people's priority lists. But in the present age, people are rethinking tourism to help beat the pandemic blues. New hotel spaces to encourage “workation” crowds where they offer both working spaces and leisure options under the same roof.

  

  1. Offices types set to change  

 

The typical office space is being reimagined after the pandemic. Hybrid workspaces with more open spaces and workstations are rising in demand. Both offices and their employees are now focusing on leisure and relaxation offices and work. If you are a real estate property manager or owner of office spaces, you must consider these demands to make more sales.  


  1. Investment in technology 

 

The use of PropTech is on the rise. There is much new-age tech that is shaking up the real estate market. You can do a lot with the correct technology, from integrating software like Yardi or MRI to automate your property management work to using autonomous drones for home tours. You can also use RPA chatbots or CRM software to automate customer communication.  


  1. Mixed-use properties are rising 

 

Another major CRE trend is the rise of mixed-use properties. People no longer want to travel in their cars and get far from home to access other amenities. CRE is now developing properties and complexes which residential spaces, office spaces, retail outlets, recreational facilities, and shopping malls all under the same compound. This gives tenants are wholesome life within the same compound without setting foot outside or working hard to get to their things of need.  


  1. Sustainable real estate is crucial 

 

Forbes news reports have pointed out that real estate accounts for 40% of the global carbon emissions. That is a scary number, and CRE is a major contributor to this problem. But the present tenants or homebuying crowd are the millennials, and this generation is highly conscious about the environment. You need to make an effort to make your real estate more sustainable or try to build zero-net energy homes to cater to this crowd. Why? This generation is ready to pay for more eco-friendly housing options than invest in non-sustainable properties.  

Investing in the right technology for your CRE business with Assetsoft 

CRE business owners creatively handle the situation to get ahead of the curve. The right innovation, proper strategy, and leadership clubbed with the correct technology selection can do wonders for your CRE business, even if the market is unpredictable. 


If you and your team are new at handling technology, then we got your back. At Assetsoft, we have years of experience in the selection of technology in project management. From managing properties and automating construction to asset management, the proper software integration can streamline everything.  

Get Started Now
]]>Wed, 13 Jul 2022 18:21:49 -0500<![CDATA[The Rising Mortgage Rates - How they can Affect your Real Estate sales? ]]>https://www.assetsoft.biz/blogs/post/the-rising-mortgage-rates-how-they-can-affect-your-real-estate-salesThe mortgage rates are constantly rising, and it has seen an all-time high in the past years. How can your real estate biz deal with that? Here is a look.]]>

 

The mortgage rates are constantly rising, and it has seen an all-time high in the past years. According to Bankrate's reports, the current mortgage rates in America are standing at 6%. It was at 5.78% the last week and 5.36% the week before that.  

 

Though the rates were meager during the beginning of the pandemic and even at the start of 2022, the picture is not so great right now. According to the CNBC news reports, in 2020, it was at a record low of only 3%, which helped in driving up real estate sales and boosted this volatile industry amidst the looming pandemic. It stayed at around 3.33% till the beginning of 2022 and helped the real estate industry recover from the pandemic blues.  

 

The interest rates are at 6% and it is the highest since the 2008 recession period. Based on Mortgage Rate reports, this number could go up to 7% by the end of 2022 and negatively impact house sales in America. What does this mean for your business?  

 

How does it affect buyers and sellers, and how do you stay afloat and relevant in business in this ever-changing market? Our team at Assetsoft has conducted careful research on the subject to help you understand everything about the rising mortgage rates and what it means for the real estate biz.  

Why are Mortgage Rates Rising?

There are multiple reasons for this sudden rise in the mortgage rates after a record two-year low rate period. What are they?  

 

The rising inflation is due to multiple world events like the Russia-Ukraine crisis and the pandemic situation which has been on for the third year now. To control inflation, the Fed had to increase its interest rates. The Fed also hiked its interest rates which made the mortgage rates rise further up. As the inflation rates are rising, there hardly seems to be any chance for the interest rates or the mortgage rates to go down any time soon.  

How does it affect home buyers? 

Rising mortgage rates means that homebuyers cannot afford to buy homes as easily as before. Customers who went for a second home as an investment or holiday space are now retracting and rethinking their steps before investing. World News reports research reports also say that the increasing mortgage rates also affect the buyers buying capacities. It reduces their buying capacity by at least 9 - 11%.  

 

According to Global News Wire news reports on NAR research, the home sale rates dropped by 7.2% in March 2022. That was a much higher number than anticipated due to the rising mortgage rate. This means that most of the predictions that the experts have made have not worked due to unpredictable situations.  

 

Each major region saw a fall in home sales, and real estate businesses took the hit. The people who were bordering on getting qualified to buy a home in America are now being pushed out of the market due to the sudden rise in mortgage rates.  

 

The average rate for mortgage applications also went down significantly. It saw a steep downward decline of 17% from the starting of 2022 to date.  

 

The Mortgage Bankers Association published this data in comparison with the mortgage application rates of the same time from the last year 2021. According to the Business weekly’s reports, this is the lowest level of mortgage activity since 2018 and predictions say these rates are going to reduce at these alarming rates for a long time now.  

How does it affect home sellers? 

When interest rates and mortgage rates go up, housing affordability decreases, eventually pushing down sales. What does it mean for the house sellers? This means that their buyers will probably not be able to give the offered price on houses.  

 

Sellers might have to rethink their prices and even cut down on the asking price to make sales go through. If the market stabilizes soon, which is highly unlikely, then the asking prices might be affordable for buyers; otherwise, it will not work.  

 

According to The Washington Post news reports, active listings of new and old homes for sale also went down in April this year by 19% compared to the number of listings in April 2021. So, what happened to the listed homes? Sellers pulled back; they are planning their strategies and waiting for the market to become less volatile before they sell. But luckily for sellers, there are other factors at play in the market. People who are coming back to the city to join work after remote work schemes were lifted are demanding new homes, and there is an inevitable sale growth from that. But the number is not huge, it might help sellers survive, but it will not be a massive win for anybody until mortgages go down.  

What does it mean for your real estate biz? 

Without proper management plans, there can be many unforeseen pitfalls along the way for any real estate business owner or manager. Your business might see fewer sales due to the low mortgage rates, but you also have to tap into other markets to stay afloat during turbulent times.  

 

Property rentals and multi-family unit tenants are coming back into town, and you need to cater to this market before losing heart over increasing mortgage rates.  

Planning Strategy and Leadership to Tide Through a Changing Market 

It is a critical time for business, and the economies are just getting back to normal when the inflation started soaring. Do not add bad strategy and leadership to this deadly cocktail and make your business crash. Get outsourced help from Assetsoft if it is a burden for you to hire a full-time strategy and leadership team for project management. We will plan the best route for your business and help you keep up with all market trends, and even then, our services will be much cheaper than hiring an in-house team. 

 

Talk to us today to find out more about our services! 

Get Started Now
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