Flipping America 261, We Have the StatsFlipping America

Opening:

How good is that professional athlete? Well, let’s take a look at his or her stats. What’s the batting average? What’s the shooting percentage? From 3-point range? Free Throws? What’s the yards per carry average. What’s the yards after contact average? What is the average air-speed velocity of an unladen swallow? Be the first person to write in or call with that movie reference and I’ll send you a Starbucks gift card. What’s your miles per gallon? How long is your average daily commute? On average, how many hours do you spend watching TV every day? Statistics are all around us all the time. Today I’m going to BLOW YOUR MIND with a complete set of real estate statistics.

Yes I studied statistics in college AND in graduate school. At the graduate level my statistics course, FED 790, was one of my favorite courses. Not so much because of the content, but because the professor was one of the most delightful persons I have ever met. He managed to make a drudgery topic into a class I looked forward to each week. That’s no small feat, because when you are digging deeply into research summaries looking for statistical significance, errors in math, illogical assumptions, blah blah blah. I won’t make you go through any of that pain today. In fact, you don’t even have to do the research. BUT – if you get a copy of the show notes, you will have clickable links for every stat I’m about to throw at you.

First let’s do the news!

News:

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Topic: Real Estate Statistics!

Between all of the different real estate terms, types of real estate, and people that make up each sector, the industry is pretty complicated. To keep things as simple as possible, we’ve divided up the following stats into relevant sections.

Residential real estate statistics

Residential is what most people think of when they hear the term real estate. It refers to the types of properties that people live on – those that are not intended to be used for anything business-related. This includes single and multi-family homes, as well as condos and townhouses.

As of April 2019, there have been roughly 673,000 houses sold in the US this year, which is 12.4 percent more than last year (U.S. Census Bureau, 2019).
5.34 million existing homes were sold in 2018 (down from 5.51 million in 2017). (NAR, 2018)
The Midwest has the highest rates of homeownership in the nation at 68.2%, followed by the South at 66.2 percent (U.S. Census Bureau, 2019).
64.8% of U.S. citizens were homeowners in the fourth quarter of 2018 (up from 64.2% in 2017). (United States Census Bureau, 2019)
35.4%of homeowners are under 35 years of age. The age bracket with the highest rate of home ownership (78.5%) is 65 years and over (U.S. Census Bureau, 2019).
Madison, WI and Grand Rapids, MI are the two most popular cities for millennial movers (National Association of Realtors, 2019).
Based on buyer activity and active inventory, the hottest real estate markets in the country are in Boston, MA and Lafayette, IN (Realtor.com, 2019).
Nationwide, the average sale price of a luxury home fell 1.6% in 2019 (Redfin, 2019).
Across the US, the median price of a home is $267,300 (National Association of Realtors, 2019).
Fishers, IN and Carmel, IN top the list of best cities for families (Apartment List, 2019).
36% of homeowners listed unexpected maintenance or repairs as their biggest regret (Zillow, 2019).
The least competitive housing markets in the country are Miami, Dallas, and Houston (Redfin, 2019).
The real estate industry will account for 22% of total commercial drone use by 2020 (Federal Aviation Administration, 2016).

Homebuyer statistics

Buying a home is no small feat. Below, you’ll find a few statistics specific to homebuyers.

The average homebuyer took 73 days to close on a property after the first initial visit to the home (Redfin, 2019).
50%of buyers found their homes through the internet, while 28 percent found them through their real estate agent (National Association of Realtors, 2018).
On average, buyers are spending 3 fewer days searching for homes in 2019 than the previous year (Redfin, 2019).
Virtual house tours are most important to buyers that fall within the 53-71 age range (National Association of Realtors, 2018).
Finding the right home tops the list for most difficult steps in the home buying process (National Association of Realtors, 2017).
33% of home buyers in 2018 were first-time home buyers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
10 weeks was the average amount of time buyers spent searching for a home in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
14% of buyers purchased brand new homes, while 86% of buyers purchased previously lived-in homes. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Selling statistics

Selling a home can be just as big of a hurdle as buying one. From getting a property listed to setting up the open house, finding qualified buyers is a feat in and of itself.

Thursday is the best day to list a home. Properties listed on Thursday sell for $3,015 more than on Mondays, which are the worst days to list a home (Redfin, 2019).
On average, 98% of final sale prices matched the original asking price of a property in 2019 (Redfin, 2019).
This year, the median number of days that a property was on the market before an offer was accepted is 40 (Redfin, 2019).
73%of sellers are more likely to list their home with an agent who leverages video to market their property (National Association of Realtors, 2018).
Staged homes sell 25% faster than non-staged homes (Coldwell Banker, 2019).

Rental statistics

Not everyone can afford to buy a home – that’s where renting comes in. Many residential properties are offered as rental units to tenants for non-commercial purposes.

Globally, the most expensive place to rent is San Francisco where the rent averages out at $3,690 (Zumper, 2019).
In 2019, Henderson, NV and Phoenix, AZ saw the fastest rent growth in the country with an increase of 4.5 and 4.1 percent, respectively (Apartment List, 2019).
Across the US, the cost of renting has gone up 66 percent (Realtor.com, 2019).
Troy, MI is ranked as the most affordable renting city for families (Apartment List, 2019).
Only 8 percent of homeowners regret purchasing a home instead of renting (Zillow, 2019).

Real estate demographic statistics

It may seem like millennials are abandoning home buying in favor of renting, but these stats prove that that may not be the case.

86% of younger millennials (aged 21–28) and 52% of older millennials (aged 29–38) were first-time home buyers. Meanwhile, Generation X (people between the ages of 39–53) consisted of 24% of 2018 home buyers. 18% of younger baby boomers (people between the ages of 54–63) and 14% of older baby boomers (people between the ages of 64–72) were home buyers in 2018. 7% of home buyers belonged in the silent generation (people between the ages of 73–93), the smallest segment of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
2020 is expected to be the peak year for millennial home buying. (Realtor.com National Housing Forecast, 2019)
Millennials will account for 45% of mortgages in 2019. (Realtor.com National Housing Forecast, 2019)
25% of Generation X home buyers identified as a race other than white/Caucasian, making them the most racially and ethnically diverse population of home buyers in 2018. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
25% of home sellers in 2018 belonged in Generation X, making them the largest segment of sellers. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
In 2018, 63% of home buyers were married. Additionally, 18% were single females, 9% were single males, and 8% were unmarried couples. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
In 2018, 37% of home buyers had children under the age of 18 living at home. (NAR Home Buyers and Sellers Generational Trends Report, 2019)

Real estate financing statistics

As student loans continue to ensnare the population into a collective $1.7 trillion debt, real estate financing has been impacted.

Notably, home values are increasing while millions of Americans are spending more than 50% of their earnings on their home purchase.

As of February 2019, the median home value in the United States is $226,300. (Zillow, 2019)
United States home values have gone up 7.2% since 2018. (Zillow, 2019)
The median rent price in the United States is $1,650. (Zillow, 2019)
88% of home buyers financed their home purchase. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
For 58% of buyers, their down payment came from their savings account. 39% of buyers financed their home using the proceeds gained from the equity of their previous residence. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
13% of all buyers cited that saving for a down payment was the most difficult step in the home buying process. (NAR Home Buyers and Sellers Generational Trends Report, 2019)
Around 50% of renters are paying more than 30% of their income on rent. (PWC Emerging Trends in Real Estate, 2019)
12 million Americans spend more than 50% of their earnings on their home purchase. (PWC Emerging Trends in Real Estate, 2019)

Real estate marketing statistics

Real estate agents understand the benefits of a good marketing plan. The majority of agents are using their budget for marketing efforts in 2019 in the hopes of gaining better leads.

On average, 31.5% of brokers and real estate agents plan on spending more than $400 a month on real estate marketing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
46.4% feel their top marketing challenge is generating enough high-quality leads. (Placester Real Estate Marketing Strategy Survey Report, 2018)
16.5% of real estate agents had success with purchased leads. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)
53.6% think adding more locally focused content to their real estate website will make it more appealing. (Placester Real Estate Marketing Strategy Survey Report, 2018)
84.6% of brokers and real estate agents use Facebook for their social media marketing efforts. (Placester Real Estate Marketing Strategy Survey Report, 2018)
30% of brokers and real estate agents want to learn more about the specific housing interests (e.g., home types) of their audience. (Placester Real Estate Marketing Strategy Survey Report, 2018)
49.5% of brokers and real estate agents want video marketing to be a big part of their marketing strategy. (Placester Real Estate Marketing Strategy Survey Report, 2018)
43.8% of real estate agents would invest in referrals if they had extra budget for marketing. (OutboundEngine Real Estate Marketing Benchmarks Report, 2017)

Real estate agent statistics

A real estate agent or broker is a professional that is licensed to sell property in their state. The business of buying and selling properties can be incredibly lucrative but doesn’t come without its difficulties.

49% of agents report working 40 or more hours per week, while 22% report working less than 30 hours (Placester, 2019).
The largest expense for working real estate agents is transportation at around $1,370 per year (National Association of Realtors, 2019).
Agents earned 17%of their business from referrals, and only 13% from returning clients (National Association of Realtors, 2019).
62% of agents spend at least one hour a day on marketing (Placester, 2019).

TIP: Getting your titles mixed up? Learn the difference between a real estate broker vs agent.

Commercial real estate statistics

Commercial real estate refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

In 2019, the average commercial real estate sale was $1.2 million (National Association of Realtors, 2019).
The total dollar volume of commercial sales in the US has decreased since 2018. In the large market (sales greater than $2.5M), sales decreased by 11%. In the small market (sales less than $2.5M), the decrease was closer to 8 percent (National Association of Realtors, 2019).
Toledo, OH and Syracuse, NY have the highest rental vacancy rates in the country at 18.1% and 17.9%, respectively (National Association of Realtors, 2019).
Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world (Statista, 2019).
With an average cost of $255.50 per square foot, Hong Kong is the most expensive city in the world for renting office space (Statista, 2019).

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Motivational Thoughts for the day

“The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.” – Winston Churchill

Transcript

[0:00] Music.

[0:17] The show that teaches you how to make money in real estate wherever you are whatever your situation there is an opportunity for you flipping America is sponsored in part by American IRA

founded by investors for investors on the web at American Ira. Com.

And by Braswell Capital Solutions commercial lending made easy on the web at Braswell Capital Solutions. Com,

and now you’re sad flipping America guy Rodger Blankenship hello and good morning sports fans all over this great country of ours,

all right I know this is not a sports-related show but I’m sure some of you like me like sports so we were thinking about.

Of course there are the endless arguments about who is the greatest of all-time in whatever Sport and the boy if you want to have an interesting conversation about that.

Skip my son going about LeBron James that kid knows more stats about LeBron James then I know about the size of my own hands anyway how good is a professional athlete

we tend to take a look at their stats that’s short for statistic,

what is the batting average what is the shooting percentage from three-point range free throws what’s the yards-per-carry average what’s the yards after contact average what is the average airspeed velocity of an unladen swallow.

[1:43] Be the first to write in with our call with that movie reference and I’ll send you a Starbucks gift card alright what’s your miles per gallon how long is your average daily commute,

on average how many hours do you spend watching TV each day statistics are around us all the time,

and today on Flipping America I’m going to blow your mind with a complete set

of real estate statistics all right I know that the first thing you think about statistics is all that’s boring how can you blow my mind with that

listen if you’re armed with the right statistics

you are armed with the knowledge you need for Success yes I studied statistics in college and graduate school and even had to work hard to be able to

to say statistics so many times in a couple of paragraphs at The Graduate level my statistics course

APD 790 was one of my favorite courses and that’s why I remember the course catalog number not so much because of the content,

but because the professor was just one of the most delightful people I’ve ever known he managed to make a drudgery topic into a class that I actually look forward to coming to each week and that’s no small feat because.

[2:59] All right I’m going to give up my age a little bit here when I was in graduate school we didn’t we didn’t really have access to.

Personal computers that we had them but they weren’t ubiquitous like they are today in the laptops were still off in the future at least the kind of laptops you could

being a lug around the class and so forth so we we we spend a lot of time in the basement

section of the library at Georgia State University researching statistical educational.

Studies and reading the statistical summaries and man oh man making notes on three-by-five cards and looking for.

Statistical significance errors in math illogical assumptions blah blah blah blah blah I’m not going to make you go through any of that pain today in fact,

you don’t have to do any research if you don’t want to but if you get a copy of the show notes you’re going to have.

[4:01] A clickable link for every step that I’m going to throw at you in just a few minutes and the stats are going to be interesting where the people buying,

where are the hottest markets where the coolest markets what happened with prices and folks because we have a continuing issue with about whether or not we are on the bubble I’ve got some bubble stats for okay but first.

Let’s do the news

okay Fox News is reporting that chip and Joanna Gaines their off the air right now,

they’re not just sitting around they have just invested 10.4 million dollars

into their Magnolia Market in Waco Texas it’s already one of the top tourist attractions,

in Texas and definitely the top in Waco Texas and the other getting ready to put 10.4 million dollars if you check the story in the show notes you’ll also see that they are working on bringing out a new,

cable channel that focuses on fixing houses up and it says it’s going to replace the discovery DIY channel and so they’ve already got the deal struck and they’ve got a lot going on congrats to them good job.

The real deal. Cam is reporting that Canada’s favorite alternative investment is Real Estate.

[5:25] That really shouldn’t come as a big surprise because Canadian real estate is hot hot hot Vancouver and British Columbia has some of the highest real estate prices in the world and we’ve got another story out of Vancouver.

And I’m not going to get into it a lot here but I do have it in the notes for the show today talking about.

[5:50] Money laundering going on in Canada particularly a lot of Chinese drug money is being used to buy real estate in Canada and I know we were reported on it before the Vancouver’s in.

The Vancouver officials have been working to do their best to curb this and I’m not sure that the.

The tax on foreign investors is necessarily curbing anything

because you know if you’re just trying to wash some money I don’t think you’re that concerned about what the returns are,

I also know from our flipping America international department and yes we have won our international team tells us that.

The people in Southeast Asia that are interested in buying.

Real estate in North America are interested in the sexier destinations the places that are known and of course that would be anything that’s on the West Coast or Hawaii or some of the other more popular spots now Atlanta

has been this is just an example Atlanta has been one of the hottest real estate markets and still represents some pretty significant

opportunities and I can give you probably 15 or 20 other markets that are even hotter that where it’s it’s you know it’s tough to miss you could

just go just about anywhere in the town and and he knows swing a hammer and make some money but.

[7:15] Japanese investors for example particularly want to buy property are you ready for this.

This is probably not going to come as a surprise.

Augusta Georgia because the Japanese and ended it’s an over-simplification to say all Japanese but.

Jack the Japanese love golf it’s one of the most popular sports in Japan,

and of course their favorite golf tournament is the Masters and that’s in Augusta Georgia now those of us that are from Georgia and those of us that have been to Augusta know that it’s pretty much of a one-horse town There’s.

No disrespect but there’s just not a whole lot going on in Augusta except for Masters week

the Masters Tournament puts a gust on the map and if it weren’t for that then probably very few people outside of the United States would have even heard of that little town however,

because it is there.

This is a reality that we deal with their opportunities for us working with our Japanese friends to buy real estate in Augusta so guess what we’re doing here flipping America folks yeah

pretty good guess that’s all the detail I’m going to give you right now.

And that’s not just because that’s pretty much all the detail we have but that’s a big reason all right moving over to.

[8:38] More local weld more us related news.

Mayor de Blasio says that New York’s Rikers Island is not going to become a Haven for Real Estate development and so this caught my attention because Rikers Island is out there in the middle of the East River and that’s where they

the prisoners there’s a big guy basically jail.

Out there on the island and so I thought well why would developers even want to develop it and yeah I guess I don’t pay.

Close enough attention to the news from every municipality across the country although we do pretty well I did not know that Rikers Island is slated to be closed by 2026,

and the City of New York is already building jails and prisons and in other places around the area and.

You know this article doesn’t go into it and I’m sure there’s been discussion and if I were that interested I would dig in but the first thing that pops into my mind is hay,

prisoners on an island sounds like a pretty good idea to me because only the best swimmers can get anywhere if they manage to escape and so that’s going to reduce it by,

some number anyway,

and so taking them off the island and putting them you know in the middle of it you know metropolitan area where if they can manage to get out they can blend in with a large crowd pretty quickly I don’t know.

[10:07] I question the wisdom of it but I question the wisdom of a lot of what goes on in politics and no one’s really asking my opinion and I haven’t cared to enter that game anyway but.

So real estate development on Rikers Island.

[10:24] What would be the appeal of that I guess just because they’re space there but you know there are a lot of buildings that you.

I don’t think you’re going to do a conversion project to change a jail in the condos at I don’t see that happening so probably they’re going to it they would have to tear them all down and maybe because of the cost of dirt.

In New York City that it would be worth it to do that but the mayor says that if it becomes anything else it’s probably going to become,

facilities for the municipality itself.

[11:00] And all right I guess maybe that makes sense but I still don’t understand the reason for moving them off the island anyway.

[11:09] I would have thought there’d been enough said about the Nick Story But there probably hasn’t been

Florida family just a couple of weeks ago lost $77,000 in a real estate scam and it’s not a new scam it’s been around for a couple of years at least listen my friends.

If you are about to buy a piece of real estate and you get wiring instructions for the settlement agent or the closing attorney in your email.

Please please please please call the office.

Where the closing is taking place and reconfirm those wiring instructions make sure that you read very carefully.

The address from which the email was sent because they’re spoofing these email addresses and making them look pretty authentic and.

This couple in Florida sent their $77,000 down payment.

To the settlement agent a few days before closing they went to the closing and the

the Secretary of stepped out and said we’ll do you have a check for the 77,000 they said well we wired it a couple of days ago and no wire had been received it was a scam and the money was gone.

Doubt here’s the thing that puzzles me.

[12:30] And I I really am asking this question for the first time today in my own mind and I’m going to go look into this,

money was wired into a bank account I know how tough it is to get a bank account and how much I do you have to produce I wonder why they can’t just go find the people where the money was wired.

And do something about that but anyway it’s a real danger it’s out there folks and then we’re going to go to a break when you come back I’m going to lay some stats on you all right.

[12:56] Music.

[13:03] You never know what’s around the corner

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[14:21] Music.

[14:39] Yeah we were talking during the break you know occasionally I take

a debit card or I’ll give a debit card to somebody on the staff here to go out and and make some purchase and our bank does a nice job with security and it is a pain sometimes it just won’t go through

and you know we get the text message and we have to get on the phone and blah blah blah blah with that much security surrounding the use of a debit card for a $100 purchase.

It’s amazing that somebody can get $77,000 wired into their account and disappear and not be traceable come on okay.

Well.

Not going to get on a rant on that but folks be careful out there when you’re getting ready to wire money and it made me think because you know we’d we wire quite a bit of money back and forth for the house that we buy and.

It’s just a kind of a reminder to be careful about that we are already being careful one of the little bit of news Ben Carson.

There might know who he is.

Remember he ran for president and actually in until he decided to drop out of the race he had my vote be honest with you I just love the guy.

[15:56] You should read his book.

But anyway Ben Carson he is now the director of Housing and Urban Development and he is in the news and this is in realty business news. Com.

And it did there’s a link in the notes he is working with me to sipala teas to relax

some of their single-family zoning laws in in the article there they made note that the City of Minneapolis just removed all single-family zoning

inside the city limits to increase density and they also talked about his working with LA and in

Los Angeles the city council has passed a requirement that all new construction must come with solar panels installed and all that’s doing is driving up the cost of construction these things scene

they that they probably aren’t intentionally designed but the net effect is they reduce the possibility for affordable housing.

Now I’m going to get back on the record to something I’ve been on the record for pretty much for the last 12 months on this show and say if you can build a house.

In a starter home price range in your area and make money and this is something you want to do.

[17:17] There is a fortune awaiting you there is such a pent-up demand for starter housing for first-time home buyer housing because the inventory just isn’t out there and,

some of you may recall a few weeks ago I did a show on the on the affordable housing crisis that we are in right now and one of the main reasons for affordable housing

they think the crisis is regulatory oversight from the cities that are making it impossible for Builders

are not impossible but so difficult.

That Builders are opting to build more expensive homes once they manage to get through the permitting process and get it,

going just to develop subdivisions they want to build something that’s going to make them more money you can understand this I can understand this I don’t blame them.

Are municipalities must do something to ease the the red tape.

For those who are building affordable housing come on Annapolis come on Atlanta.

Come on Jacksonville come on Los Angeles especially Los a especially every city on the west west coast come on.

[18:35] Lighten up.

We’re not talking about just creating massive income possibilities for the home builders were talking about allowing home builders to build.

Product for the people that are the backbone of the American economy the first time home buyers come on let’s make it happen.

Hey we’re coming back with some stats in a few minutes and actually I’m probably going to start the meeting before the next break but I wanted to tell you how you could get in touch with us here at flipping America

you need to send the a an email if you have questions about real estate send the email to questions at Roger Blankenship. Com that’s me but,

the team here will take your question and get you an answer we know the answer to a lot of real estate questions but if we don’t know it will get you the answer and we also promised you an answer

if you send your question and we will answer it we answer every question that comes in and always have and plan to always in the future.

We may even answered on the air and we do that quite a bit.

When we have questions that we think a lot of people are wondering about and sometimes we get the same question from near 25 or so people,

every week so we’ll take time to answer those questions.

If you don’t want to email or can’t email then you can call us anytime day or night for 04.

[19:58] 3 6 9 10,

18 as 404-369-1018 press extension one to reach our national comment and question line.

[20:13] Is 404-369-1018 or questions at Roger Blankenship. Com we encourage you to follow us on social media Facebook look up,

flipping America Network and on Twitter and Instagram please follow us at flipping America

be sure on Facebook to like some little bit of content and then like the page they say that it helps to do it in that order I don’t know I don’t really care but hey it seems to be important to the people that manage the social media so,

letsa honor that and thank you so much for tuning and thank you for listening thank you for your comments thank you for following us on social media and now back to our regularly scheduled content oh by the way I got a couple of nestle sorry about that

interrupting myself,

I want to invite you to come out and join us for lunch every Wednesday every Wednesday at the baraonda Italian restaurant on Peachtree Street in Atlanta Georgia

if you’re ever in Atlanta on a Wednesday and wondering what to do if you’ve already done the you know the Coca-Cola Museum and you’ve already done

you know the Atlanta aquarium and you’ve been over to the new confederama and that’s about all the real

well there’s there’s a couple of other sites that you can visit you know the MLK Center in and that sort of thing but what you’ve seen all the sights if you got some time on Wednesday.

[21:34] Come over and have lunch with us and if you show up for lunch and tell me that you’re from out of state and you heard about it on the show and it’s your first time your lunch is on me.

Okay get some conditions there okay.

But anyway come out and have lunch with us on Wednesday and Thursday evening we do the same thing at City Tap which is also on Peachtree Street in midtown Atlanta so those,

two opportunities just to get together and basically.

Break bread with the flipping America guy and talk real estate why do we do it well we do it because we like to help people with real estate we also do it because we like these do restaurants in and we tend to eat.

Lunch everyday we don’t eat dinner everyday but we eat lunch everyday and those will have a you know something for dinner on Thursdays and sit and talk about real estate.

Okay we’ve got a couple of apps we got three apps in the App Store now flipping America the show.

[22:31] The flipping America Network which is our buy and sell site for Real Estate Investors you definitely need if you’re buying and selling real estate residential or commercial.

You need a profile on the fan but look big American Network and it’s free so go ahead and do that the show is free it’s free to download free to listen there’s never an in-app cell up cell or purchase or anything like that.

If you use the flipping America Network that’s also free to use when you go to buy or sell a property there is a technology fee that’s charged but only when you’re you know involved in a real estate transaction you will be amazed at how inexpensive that.

Technology fee is you’ll be amazed plus we’ve got another free app called

on the property grade app you answer 10 simple questions about a property and the app instantly tells you what you can expect to make your return on investment you return on cash and the program gives the project a letter grade using the proprietary

flipping America investment property grade algorithm okay to the topic to the topic statistics.

[23:37] Between all of the different real estate terms types of real estate and people that make up each sector that this industry can get fairly complicated so,

to keep this next section as simple as possible.

We divided up the following stats into relevant sections and we are going to lay the stats on you all right we’re going to begin with a residential real estate stats and we’re only going to get a minute or so

into this because we have a hard break coming up but residential real estate stats

residential is what most people think about when they hear the term realestateu refers to the types of properties that people live in or on those that are not intended to be used for anything business-related except for me know people who work from home

this includes single and multi-family homes as well as condos and townhouses all right as of here we go as of April

2019 there have been roughly 673000 houses sold in the United States this year which is 12.4%

more then last year.

[24:45] More okay bubble people hate that music means it’s time for the break a library program.

[24:52] Music.

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[26:35] Music.

[26:51] They were back on Roger Blankenship your host I teach people how to make money in real estate on this show flipping America we don’t encourage you to just run out and drop what you’re doing and start flipping houses like you see on TV,

but we do encourage everyone to consider real estate as a part of a balanced Investment Portfolio,

and to that end we work hard to bring you the best news information demographics and statistics,

to help you make a good decision about your relationship with real estate

now I threw one out before the break and took but I’m going to come back to it now so we have a full set during this little segments here as of April 2019 there have been roughly 673000 houses sold this year,

which is 12.4% more than last year

everybody says we’re it all did the bubbles about to pop working but we’re heading for a crash well.

[27:43] You know as Ramon said on the show the other day something’s about to happen but that’s a fairly safe prediction because,

the one way that you could be wrong and making a prediction about the future is to predict that nothing will happen something is about to happen but are we getting ready to crash I don’t know

you know sales were down last year that’s in this next to tistic but they’re up this year I don’t.

Bet it really is going to make a significant difference because I’ve been tracking the number of home sales for years now for 10 years at least and guess what.

Always in the 5 million range

Five Point disconnect stat 5.34 million existing homes were sold in 2018,

now that’s down from 5.51 in 2017 but 2017 was one of the all-time highs,

this date is from the National Association of Realtors so.

It was a 2018 was a little bit down from 2017 but hey when you hit the all-time high or one of the all-time highs there’s nowhere to go but down.

So the fact that it trended down in 2018 should not be a surprise and probably doesn’t indicate anything other than the market getting back to normal.

[29:01] Next Step the Midwest has the highest rates of home ownership in the nation at 68.2%.

Followed by the south at 66.2%.

[29:14] Okay so in the midwest in the South where homes are some of the most affordable prices in the US homeownership is at its highest level 60,

.8% of US citizens were homeowners in the fourth quarter of 2018 and that’s up,

from 64.2% in 2017.

[29:34] So here’s an interesting thing as we lower government regulation and some would say government interference.

[29:44] Homeownership actually goes up what happened when the government decided to dive in in mm

3 4 and 5 to help a lot of American homeowners real American citizens realize that dream of homeownership well yeah it went up it went up and then the crash game because how did they make it go up

they used artificial methods what do you mean by artifice

artificial methods well here’s what I mean if you’re a government agency or somebody a government decision maker and you decide what we want more people to own homes

and your logic is we have to make it easier for people to own homes then you,

create loan products that make it easier for unqualified people to get loans now you’re not going to say we’re making it easier for unqualified people to get loans you’re going to say we’re making it easier for people to qualify for loans.

But what you do is you get unqualified people borrowing money on houses.

[30:46] I was in the business then and I watch people who had no

business buying a house and did not have the personal sense of financial management or even the slightest clue about what they were doing

they were buying a house

and I watched people who in truth made $40,000 a year but reported as stated income of $130,000 a year by half million dollar houses that I knew they couldn’t afford and I’m sitting at the closing table just.

[31:18] In amazement that people would just boldly lie

and get into these properties and I should have known that disaster awaited us and I guess I thought more about should I say something,

I didn’t really know what to do about that anyway I got off on a little rant their back to the stats.

At work group compared to then what where we are now is boy it it’s tougher for help people to buy houses and

The Lending regulations are still pretty tight and in some places it’s just very difficult to get a loan yet home ownership is up.

[32:01] Okay next step.

[32:08] 35.4% of all homeowners are under,

the age of 35 does that surprise you everybody says Millennials just don’t want to buy house and so far as well guess what money I’m so buying houses Millennials I get.

I’m past being annoyed I am now amused by all of the hype surrounding millennials,

big whoopee do it there just another generation of kids,

that are becoming adults and it’s another generation of kids becoming adults and the current adults are saying oh my I I don’t think that we can survive this generation of young people becoming adults that’s been being said.

For the last hundred years in the United States.

Okay we’ve always worried about the Next Generation those who were the old fuddy-duddies and the uncool unhip in the 1960s,

watching that generation come through with the whole flower power hippie thing they thought those kids would never be able to exhibit the responsibilities of adulthood and they were just sure for that America only had a few years left.

[33:21] And then you know they got through the hippie face and they became adults and they took on responsibilities and so forth

and then a few years later those adults were very worried about the children of the 80’s the the Gen xers and then the Gen Y in the Gen Z and it’s just repeating over and over again we’re worried about the millennials

look I see,

maybe an increased rate in the softness of American young men and this is due to the the influences that seek to feminize young men and I don’t mean that as a compliment

and all that you know that the goofy stuff about toxic masculinity and all that but I think everything’s going to be okay in the end.

Boys are going to become men and I don’t think you’re ever going to take the the boyishness out of boys and and that’s alright so

you know I worry a little bit about that but I don’t stress over it and I worrisome about every generation of young people but I’m not obsessing because they will grow up.

[34:26] It just happens so Millennials the current crop of young adults they’re buying houses okay.

[34:36] Madison Wisconsin recording this is according to National Association of Realtors Madison Wisconsin and Grand Rapids Michigan are the two most popular.

Cities for Millennial movers in 2019 Madison Wisconsin and Grand Rapids Michigan.

[34:58] The age bracket with the highest rate of homeownership that 78.5% is 65 years and over.

[35:07] Okay that’s a stat but that’s not news that’s no different than it’s ever been.

[35:14] The older you get the more like the yard on house a lot of your security in your old age comes from the fact that you know.

You own a place to live in and Vac in many cases it’s paid for and they’re not going to come take it away from you as long as you keep paying your taxes.

Okay based on buyer activity and active inventory the hottest real estate markets in the country are drum roll please.

There’s a drum roll Boston Massachusetts.

And okay boss it may not surprise you but this next one you’re going to you’re going to love.

Lafayette Indiana and I know half of you right now or say where the heck is Lafayette Indiana well it’s real close to Purdue University.

Okay anyway Boston Mass and Lafayette Indiana are the two hottest real estate markets based on fire activity and active inventory.

[36:11] Next at Nationwide.

The average sale price of a luxury home fell 1.6% in 2019.

Now this is something that we forecast and yes it did come true it wasn’t that hard to see what you really started looking in the data but when people see the decline in prices they start the panic

but they declined and prices at in the luxury home Market is.

Very understandable when you consider that the coastal areas of the United States word luxury homes tend to be grouped they were due for a price correction which.

Has come and is still underway and then with the tax reform of 2016.

And it’s natural to understand that there’s less demand for high-end houses because some of the tax advantages of owning a very expensive home have going away.

In fact it’s a little bit of a tax disadvantage to own a super expensive house across the United States the median.

Price of a home is now $267,300 this is according to the National Association of Realtors the median home price is $267,000 who would have thunk it.

[37:31] Yeah I know but that’s just another reflection of age

it’s always going to happen and when some of you young whippersnappers out there listening to me our Mage and the national

the average median price of a home in the US has 400,000 some years down the road you’re going to be thinking man I remember back when you can buy a home for 200,000 well I remember when you could buy a home for 25000.

Right now not not in my adulthood.

I have bought even now I have bought a number of houses for less than 25000 in fact I buy you know I buy a Stihl every week.

4 less than that but you know we’re buying them at below the national average okay there are a lot of houses above the average 2 okay.

[38:22] Does next at the.

[38:25] Best cities for families in the United States the best city for families in the United States there are two.

And they are going to be cities that will surprise you and I’m going to tell you right after this quick break.

[38:43] Music.

[38:56] If you’re a real estate investor you owe it to yourself to get a profile on the fan.

The flipping America Network it’s a flipping America network.com the profile is free if you’re a buyer a landlord a rehabber.

You enter what you’re looking for particularly the ZIP codes of interest you don’t have to sit on the app,

all you have to do is tell us what you’re looking for your profile includes your cell phone number which will verify and when a property is posted in the zip code you’re interested in your going to get a text message that says,

look what just hit the fan.

[39:34] Everyone should register all 43,000 ZIP codes in the United States are included and you could be finding your next property just by listening for your text we call it snap,

click sold because if you are a seller you can download the app will anyone can download the app.

And in the App Store it’s called flipping American Network all one word no spaces you download the app flipping America Network,

and does a seller you could be at the property negotiating a deal with someone that you want to wholesale you can take a few pictures of the property and that’s the snap.

Then you can click to upload this property to the fan put a little information about the property there and.

Immediately that property will get texted,

to however many investors have expressed an interest in that zip code you no longer need to manage a mailing list you don’t have to go out and put together your flyers in your brochures or create

ads for Craigslist or other sites just posted in the fan it may be sold by the time you get back to the office that’s why we’re calling it snap.

Click sold www.dot flipping America Network. Com register now.

[40:53] Music.

[41:10] Okay during that break I took a look at what we got ahead of us and I realize I’ve got to quit yakking and just give you the stats here we go Fishers Indiana and Carmel Indiana,

the list of best cities for families in 2019.

36% of homeowners listed unexpected maintenance or repairs as their biggest regret in 2019 the least competitive housing markets in the country are in Miami Dallas and Houston.

The real estate industry will account for 22% of total commercial drone use by 2020.

That’s according to the FAA.

[41:51] Home buyer statistics buying a home is a kid can be one of the biggest challenges in your life the average home buyer took 73 days to close on a property after the first initial visit to the home.

In 2019.

2018 50% of buyers found their homes through the internet while 28% found them through their real estate agent that’s interesting to me because that leaves 22% that found the home that.

We don’t know where they got them okay on average.

Buyers are spending three fewer days searching for homes in 2019 then in 2018.

[42:29] Virtual House tours are most important what age range would you guess well you might be surprised it’s most important to buyers that fall within the 53 to 71 age range.

Finding the right home tops the list for the most difficult step in the home buying process.

[42:49] 33% of home buyers in 2018 were first-time home buyers

not real news it’s kind of like that all the time 10 weeks was the average amount of time buyer spent searching for a home in 2018

and 14% of buyers purchase

purchase brand new homes well 86% of buyers purchased previously lived in homes in 2018 selling stats selling a home can be just as difficult as buying it for people who are not in the industry.

So here you go Thursday is Far and Away the best day to list a house.

Properties listed on Thursday sell for $3,000 on average more than properties listed on Monday which is the worst state to list a home why is that while there may be some reasons but it’s mostly speculation on average

98% of final sales prices match the original asking price of a property in 2019 that is a remarkable stat that’s much higher than

in the past 98%.

People getting full price for their house this year the median number of days that a property was on the market before an offer was accepted is 40.

That’s still strong Market 73% of sellers are more likely to list their home with an agent who uses video to Market their property.

[44:15] And here’s an interesting stat staged homes sell 25% faster than.

Empty or non staged homes 25% faster rental stats.

Not everyone can afford to buy a home that’s we’re renting comes in many Residential Properties are offered as rental units.

Two tenants for non-commercial purposes okay we’re talkin to residential here globally the most expensive place to rent is San Francisco where the rent averages out at $3,690 at

just right at 3700 and 2019 Henderson Nevada,

which is just outside of Las Vegas and Phoenix Arizona saw the fastest rent growth in the country with an increase in 4.5 and 4.1% respectively.

Across the United States the cost of renting has gone up 66% in 2019.

Hurt over over from the beginning of 2018 Troy Michigan is ranked as the most affordable city in America.

For families looking to rent only 8% of homeowners regret purchasing a home instead of renting.

[45:33] How about some real estate demographics to Stats 86% of younger Millennials age 21 to 28 and 52% of older Millennials were first-time home buyers meanwhile.

Gen X that’s people who are now between the ages of 39 and 53 can you believe they’re that old genetics consisted of 24% of.

2018 home buyers,

18% of the younger Baby Boomers people between the ages of 54 and 63 and 14% of the older Baby Boomers people between the ages of 64 and 72 we’re home buyers in 2018 7% of homebuyers belonged in the silent generation that would be people between the ages of 73 and 93

the smallest segment of home buyers in 2018 now this is not news these stats are

fairly it was whatever you call the generations those age groupings that that’s generally how it breaks down pretty much every year 2020 is expected to be the,

gear for Millennial home buying why is that well because after that they’re going to be in their houses and there’s a new generation

which I don’t even know what we’re calling them they’ll start buying homes.

[46:46] Millennials will account for 45% of mortgages in 2019 again not news it’s not because it’s a Millennials thing it’s because it’s their age

25% of Genex home buyers identified as a race other than white or Caucasian making them the most racially and ethnically diverse population of home buyers in 2018

25% of Home sellers in 2018 belong in Generation X making them the largest segment of sellers,

oh and that makes sense it’s not a Genex thing it’s this.

At age the people are out of their you know they’ve gone through their first house and they’re ready to move up and buy somewhere else or move someplace different.

And indeed all that will be true when the Millennials get to be that age as well 2018 and 63% of home buyers were married.

Additionally 18% were single females 9% were single males and 8% were unmarried couples this according to the National Association of Realtors home buyers and sellers generational Trends report in 2018.

37% of home buyers had children under the age of 18 living at home 37%.

Real estate financing stats.

[48:04] As of February 2019 the median home value in the United States is 220 6300 United States home values have gone up 7.2% since 2018 all right,

little side if you can remember back folks if you could,

just dial it back to the beginning of 2018 and hear my prediction show I predicted that home prices were going to go up about 7 to 7 half percent in 2018.

Man I love being right next the median rent price in the United States is $1,650.

Next 88% of home buyers Finance their home purchase.

[48:51] For 58% of buyers their down payment came from their savings account.

39% of buyers Finance their home using proceeds gained from the equity of their previous residence.

[49:04] 13% of all buyers sided that saving for a down payment was the most difficult step in the home buying process and I don’t want to get too far off the subject here but I’m just going to say,

that’s as it should be.

[49:19] Saving for your down payment should be it doesn’t have to be difficult this early but it should be a requirement I worry about

the 3% down FHA Loans I just I just don’t think it should exist I know it sounds unkind and I’ve gone the record before,

and people that know me know that I’m not unkind this is tough love right here folks if you don’t have the discipline to save at least 10:15 or 20% of the

of the cost of your home then you may not have the discipline it takes to maintain that home and you may not have the financial margin to pay for things that break.

[49:56] All right back to the subject.

Around 50% of renters are paying more than 30% of their income on rent.

Now this next one kind of concerns me a little bit 12 million Americans spend more than 50% of their earnings on their home purchase wow.

[50:18] I didn’t even think you could qualify if you’re spending that much real estate marketing stats.

On average 31.5% of Brokers and real estate agents plan on spending more than 400 a month on real estate Marketing in 2019.

46.4% feel their top marketing challenges generating enough high-quality leads 16.5% of real estate agents had success with purchase leads that’s not a very high percentage.

53.6% think adding more locally-focused content to the Real Estate website will make it more appealing.

84.6% of Brokers and real estate agents use Facebook for their social media marketing efforts.

30% of Brokers and agents want to learn more about specific housing interest of Their audience 49.5% of Brokers and agents

I want video marketing to be a big part of their marketing strategy

and according to what we just heard that’s probably a good idea 43.8% of real estate agents would invest in referrals if they had extra budget for marketing.

[51:31] Hello let’s talk real estate agent statistics.

[51:36] 49% of Agents report working 40 or more hours per week while 22% report working less than 30 hours.

The largest expense for working real estate agents is transportation at around $1,370 per year.

[51:56] Agents earned 17% of their business from referrals and only 13% from returning clients well that kind of makes sense because how many.

How many people are going to buy multiple houses in a short time. Do you know.

[52:13] 62% of Agents spend at least one hour a day on marketing.

[52:19] So let’s consider commercials commercial real estate statistics commercial real estate is non-residential property that generates income.

This can include malls hotels and office spaces,

in 2019 the average commercial real estate deal was 1.2 million dollars.

[52:42] You know if you had asked me ahead of time I would have probably thought that the average commercial deals would be much larger than that but 1.2 million is the average commercial deal.

The total dollar volume of commercial sales in the US has decreased since 2018.

In the large market sales greater than 2.5 million sales decreased by 11% in the small market sales less than 2.5 million the decreased was the decrease was closer to 8%

thus according to the National Association of Realtors.

[53:15] The highest rental vacancy rates for commercial properties in the country.

Are Toledo Ohio and Syracuse New York now it’s interesting because.

We’ve had a few properties in Toledo over the last several months and they go quickly the properties go quickly and I don’t have commercial property there but.

You know we’ve we’ve done some Partnerships on some inexpensive houses there and we were.

Feel very fortunate to have moved them out very quickly.

Once we acquired them and so I feel from a residence that one Toledo seems fine to me but commercial I guess not.

[54:00] Based on annual rent 5th Avenue in New York city has the most expensive retail rates in the world.

[54:11] And last with an average cost of $255.50 per square foot.

Hong Kong is the most expensive city in the world for renting office space $255 a square foot wow.

[54:29] By comparison high-dollar square footage in Atlanta in the Atlanta area is about $45 a square foot.

[54:39] I think we have time for a question from our listeners may be a couple but at least one anyway I got an email from Nick Hill

and I sure hope I’m saying your name right

but Nick Hill from Atlanta Georgia could morning I was listening to a recorded show flipping America I am new to this business and getting organized before I can actively wholesaler rehab you mentioned that you have some spreadsheet that you can share that estimates the cost of a rehab.

Could you please share the details and the answer is yes I can and we do get this question from time to time so we thought I thought we would take the

a question on the show here and I’m glad we have time to do it.

[55:19] Our experience over the years is you have to make an offer pretty quickly now if you have time to go out and look at a property and measure it out and see everything there is,

then you definitely need to use the ultimate rehab estimator which is an Advertiser on this show

it’s a terrific program it’s thorough it’s complete and you’re going to get a great number what I’ve noticed especially over the past few years as we have to move a little faster than I can move with that app.

As great as it is it still takes about an hour and a half and you have to get out to the property I want something that can allow me to make an offer sight unseen and come up with at least a decent estimate of what the properties going to fix

so a few years ago I started digging back through my records

just looking at what it was costing me to fix properties and I didn’t want to go all the way back to the beginning because prices have gone up.

[56:17] And the math to figure out the rate of inflation know that can get a little difficult so I just kind of went,

like maybe to 300 properties and this was several years ago and,

I came up with this basic understanding which I’m going to lay out for you now and I’ve already answered Nichols question via email but I wanted to share it with you also,

when are we having a property you’re basically redoing about 25% of it between you know the paint carpet maybe some stuff outside and all new kitchen and master bath and maybe remodel all the bathrooms so about 25% of the house

what if you can assume that a house cost $100 a square foot to build,

then you’re at $25 a square foot so that’s where you begin take the square footage of the house * * 25 and you’re on your way to a pretty good estimate of what it’s going to cost

this is assuming the house is in reasonable condition doesn’t need major repairs you’re not going to have to strip it down to the studs

and that’s our thing then your cost per square foot goes up and if the house has been beautifully maintained it is in great shape then it may be less than $25 a square foot but at least.

[57:27] You have a starting point now a house that is 2 years old is going to typically need less than a house that is 12 years old and that extra 10 years of age is going to cost you more because just,

things happen things wear out over a. Of years so what we did was we started allowing $5,000 for every 10 years of age and that’s not the same as $500 a year,

because in the first two or three years it’s not going to be anything more but after 10 years there’s suddenly a hit with something broke then $100 a square foot for any additions,

and then sometimes you have just something weird that just you just can’t put into a formula that you just come to price out but there you go $25 square foot plus.

5000 for every 10 years of age plus $100 a square foot for additions and you got yourself.

A default repair formula that is going to be quite valuable to you if you’ll just use it so just use it.

[58:27] That music means we’re out of time for today folks will be back again with an exciting show next time.

[58:33] Music.

[58:49] My good friend Gordon cats says a dog that chases five rabbits catches none.

[58:57] This. Is brought to you today by the foundation for Renewal working together with communities across the country to bring lasting life change and impact.

Find them on the web at renewal fund. Net and is always your gift in any amount is very much appreciated and tax-deductible thanks for joining us my friends will see you very soon.

[59:17] Music.

[59:31] You’ve been listening to flipping America real estate investing for everyone if you have any questions about real estate send them two questions at flipping America network.com,

listen three times a week on stations across the country or on the flipping America app free in the App Store,

make sure to like us on Facebook find and follow us on Twitter and Instagram and keep your eyes open opportunities are everywhere.