Sharing is Caring: The Sharing Economy’s Effects on Real Estate

Have you been paying attention to the new mode of travel, lodging, and interaction? We’ve been moving to a different way of doing things here in the good old USA, and that way is far more like what our kindergarten teachers used to tell us: sharing is indeed caring these days—and it’s saving people a lot of money.

sharing birds
From the Wikimedia Commons.

So much so, in fact, that it’s beginning to affect how people make major decisions. Do they buy a car for personal use or are they willing to use Lyft, a makeshift taxi service servicing some major cities (and attempting to roll out to more). Need a room for a few nights somewhere? AirBnb has you covered. And the income that people using these services earn (as well as the inexpensive alternative that they provide to traditional taxis and hotels) can affect what factors influence a decision on where to live.

Here’s a plausible scenario: Say there’s a very affordable house on the outskirts of a major city, just outside the range for someone to walk to work. For someone who’s espousing frugality in their efforts, this is a big concern. If Lyft is available for them, then that might tip the scales towards this home that normally they wouldn’t have considered.

Likewise, people may choose to buy a bigger home so that they can rent one of the rooms for a few days a month. The mere presence of these services mean that they’ll become considerations as they catch on.

While we’re not endorsing or detracting from the sharing economy, we’ll simply say this: there’s never been a better time to really get to deeply know your client base. While you might not be representing someone interested in Lyft (which is marketed more towards younger professionals looking to save money), AirBnb might be on their radar. Or Getaround, RelayRides, and more. These services are becoming very popular and might just change some markets—if you’re willing to make the connections and use them as selling points.

Florida Housing Market Improving Steadily

Great news for Florida’s housing market: listings, median prices, and speed of sale are all on the rise according to data from Florida Realtors.

housing market improves

The median prices are something to behold. According to the report from Florida Realtors, median prices for townhome, condo, and single-family homes all rose year-over-year—“for the 27th month in a row.” That’s simply astonishing and great news for anyone still concerned that we’re not in some form of recovery.

Additionally, the data notes a reduction in distressed sales and a corresponding interest by families looking to sell their home traditionally. Thanks to that reduction, the report notes that there is a 11.6 percent increase year-over-year in single-family home listings and a 4.2 percent increase in townhouse/condo listings. Supply and price are both going up—which is a good thing for anyone in the real estate industry and for the housing market in general.

However, it should be noted that while this is good news for our year-over-year gains in the housing market, we are still below the national median in sales price (our $165,000 versus the national $188,900). That’s not terrible, but it does show that the value hasn’t quite caught up—but with a 27 month streak of showing improvement, we’re catching up quite nicely. 

Florida Realtors states that, despite these other issues, sales are down for both single-family and townhouses/condos. Dr. John Tuccillo also notes that this is an image of a re-emerging normal market, noting that the weaker sales results in single-family homes and townhouses/condos are “solely the result of plummeting short sales,” meaning that more people are selling their homes for their value and helping stabilize the market.

And good for them, and for you. It’s nice to see us in recovery, gaining value in our real estate, and seeing some normalcy in what’s been a more chaotic world.

Thanks to DSNews and Florida Realtors for the info.