Is the New Workweek 3 Days In, 2 Days Out?

The “What will happen after the pandemic?” question continues to be debated, but many companies seem to be focusing on a hybrid work-from-home system.

NEW YORK – Many people want to work from home even after the pandemic is over. A new survey from JLL of 2,000 employees globally found that 72% want to be able to work from home more during the workweek, up considerably from 34% before the pandemic. Most (66%) favor a hybrid model that mixes in office, home and a co-working facility.

The idea of a 3-2-2 model is gaining popularity with workers. LinkedIn’s year-end roundup of 2020 workplace trends called it one to watch in the new year. The model would allow employees to work three days in the office, two days remotely and have two days off.

While many workers don’t want to return to the office full-time, they want to return some since they miss the workplace. Slightly more than half (62%) say they don’t feel as productive at home, and 58% miss working at an office, according to a separate JLL survey. The 3-2-2 model could work for these people, allowing them to balance remote and in-office work.

“The emergence of this new framework for the workweek confirms that people don’t just want to go back to the office – for many, they need to,” writes Kenny Kane, chief operating officer at Firmspace, for Forbes.com. “And commercial real estate agents will see this reflected in their quarterly reports as soon as the pandemic turns around.”

Still, a CBRE analysis cautions that the growth in remote work could cut the overall need for office space by 15% after the pandemic ends. As workplaces consider new leases, they’re demanding more flexible space options, shared meeting spaces, better indoor air quality, connected building apps, and touchless technology, CBRE notes. Also, about 50% of the workers surveyed by JLL consider socialization spaces crucial to their experiences in the office in the future. These spaces could include coffee and tea areas, lounges, terraces that offer more connection with nature and more.

Peter Miscovich, managing director of strategy and innovation at JLL, told the Commercial Observer that some clients want to decrease their office portfolios, open up satellite spaces in the suburbs, or retool their existing spaces to fit a new hybrid workplace model.

Co-working spaces are increasingly viewed as an alluring option. The JLL survey finds that 40% of workers would like to be able to work at a co-working space in the future.

For companies, the office will remain a key role for companies as a collaboration space, Miscovich says. Only 10% of survey respondents said they would want to work from home exclusively; 74% would be willing to return to the office at least part time; 24% would be willing to return on a full-time basis.

Source: “72% of Workers Don’t Want to Return to Office Full Time, Report Finds,” Commercial Observer (March 5, 2021); “Shaping Human Experience,” JLL (Feb. 22, 2021); and “What the New 3-2-2 Work Week Will Mean for Commercial Real Estate,” Forbes.com (March 2, 2021)

© Copyright 2021 INFORMATION INC., Bethesda, MD (301) 215-4688

Daily MLS (Economics 101)

MLS for Indian River County FL shows 613 Residential Listings, 1,286 Under Contract/Pending, 1,421 Sold for 2021 leaving us an absorption rate of 15.62 per day. With 15.62 residential properties being absorbed into the market each day we have 39.25 days of Inventory.

Click link to see chart:

Daily MLS Numbers (Economics 101)

as I write this we are at 631 Residential Listings, 1,313 properties under contract/pending, and 1,371 properties closed/sold this year leaving us with an absorption rate of 15.233. 15.233 houses are being absorbed into the market daily. with these numbers we have 41 days of inventory.

Click link to see chart for the last few days.

Florida Realtors Releases Latest Fla. Buyers & Sellers Report

By Erica Plemmons

Florida Realtors economist: Buyers and sellers need Realtors for their buying and selling journey. Opportunities exist via connections to past clients and new-home buyers.

ORLANDO, Fla. – Relationships are essential for agents and brokers, according to the 2020 Profile of Home Buyers and Sellers in Florida. Some insights from the survey about Florida’s latest buyers, sellers and their experience in the housing market are shared next, and you can also view a synopsis of the results on Florida Realtors®’ website or download the full report.

On your marks, get set, buy!

Florida buyers lean heavily on the internet when they begin the home buying journey, with 44% “looking online for properties for sale” as their first step. This holds true for one-third (32%) of first-time home buyers, but 16% approached family and friends to discuss the process, compared to only 2% of repeat buyers. These generally younger buyers are looking for guidance from their nearest and dearest. Maintaining contact with past clients could put your name on the tips of their tongue when these conversations arise.

Although buyers may reach for the internet initially, they value real estate agents. Nearly nine in 10 buyers (89%) used real estate agents as a source of information in their home search. But you’ll need to be patient. Typically, buyers search for three weeks before contacting an agent.

Who’s buying

Unsurprisingly, Florida’s reputation as a retirement destination rings true with its buyers. The national buyer and seller report found that about one-fifth of all buyers were aged 65 or older. In contrast, nearly one-third of Sunshine State buyers belonged to this age category. Nine percent of Florida buyers cited “retirement” as their primary reason for purchasing a home (5% nationwide).

The median age of Florida homebuyers was higher than the national average and regional statistics at 56. With their age skewing older, Florida’s buyers are more likely to be repeat buyers. Less than a quarter (23%) were first-time buyers compared to 31% across the country.

Many headlines shout “millennials” (born between 1980 and 1996) being in their prime homebuying years. They’re the largest homebuying generation nationwide, though this is not the case for Florida. Still, millennials are the dominant force for Florida’s first-time buyers.

Younger adults, age 18 to 24, made up 3% of all Florida homebuyers in 2020. It may seem like such a small figure to highlight, but it represents a new generation, Gen Z, joining the ranks of homeownership.

Single female buyers are a force to be reckoned with in Florida. In 2020, 21% of buyers were single females, the highest percentage in Florida reports going back to 2012. The majority of buyers are married couples (61%), and unmarried couples and single males represent 9% and 8%, respectively.

What they’re buying

The typical (median) Florida home purchased in 2020 was 1,960 sq. ft. and built in 1999. Three-fourths of Floridians purchased an existing home, while nearly one-fourth (24%) purchased a new home. Florida’s 1-unit building permits in 2020 outnumbered every state except Texas. With limited existing home inventory and some relief on the new-construction side, Floridians took advantage of this option, while nationwide, only 15% of buyers purchased a new home.

With this ratio of existing to new purchases in mind, 85% of Florida buyers used an agent, 12% purchased directly through the builder, and 3% purchased from the previous owner.

New construction buyers may have the misconception that hiring a real estate agent or broker would increase their purchase price. That’s simply not true! Realtors® can be an important advocate for buyers of new construction. Considering marketing how you can help – knowledge of the design center process, negotiating add-ons, experience with walk-throughs, and more – to earn a role with new-home buyers.

Well over half (57%) of Florida homes purchased were in the suburbs. But along with retirees, Florida is known for its fun in the sun. Nine percent bought in resort or recreation areas.

Help! Buyers need an agent

Four out of five buyers (79%) believe a real estate agent is very useful. 85% used one for their transaction, and 89% used an agent or broker as a source of information. But what specifically do they find helpful?

Half of Florida buyers (52%) say “finding the right property” was the hardest step, and it ties directly to what buyers want from their agent – “help to find the right home to purchase” (52%). Two of 10 desire help with negotiations, 11% want help negotiating the terms of sale, and 10% need assistance with price negotiations. Another 8% indicate the biggest role they need agents to play is “help with paperwork.”

With your guidance, buyers can feel confident in their purchase decision. One-third (32%) of Florida buyers felt they made no compromises in purchasing their home. Further, 43% believe they will stay in their homes 16 years or more.

The survey was completed in June 2020, so as competition spurred through the end of 2020, we may see different levels of satisfaction revealed in next year’s survey.

Sellers

Sellers are motivated by relationships. Fifteen percent (both Florida and U.S.) moved to be closer to family and friends; 14% of Florida sellers moved due to retirement. Additional reasons prompting sellers to list their homes include a change in family situation, home size (both too small and too large), and jobs.

Agents and brokers need to weave their own relationships with sellers. Your foot in the door is connections to their friends, neighbors or relatives. Thirty-eight percent of Florida sellers were introduced to their agent through these sources.

Sellers expect Realtors to provide the full package of services but focus on connection to buyers, price and speed of sale when asked about what they want. The areas where they seek help are marketing to potential buyers (24%), pricing the home competitively (20%), finding a buyer for the home (19%) and selling within a specific timeframe (16%).

Once relationships are formed and needs are met, good results enter the picture for all involved. Those who listed saw success in the price their property received and equity gains. The report found the median sales price compared to listing by price was 98% for Florida sellers, mirroring statistics produced by Florida Realtors using Multiple Listings Service (MLS) data feeds. Additionally, Florida sellers gained $69,500 in equity in 2020, and the equity equated to 35% of the sold price.

It’s easy to be happy with those profit numbers and 91% were “very satisfied” or “somewhat satisfied” with the selling process; 74% would “definitely” and 14% would “probably” use a real estate agent again or recommend one to other sellers. After closing, ask for reviews and referrals, which can lead to opportunities with future sellers.

Connections, connections, connections

Florida checks the box for location, location, location, with options for homes in the suburbs, urban cores, rural outskirts, and resort or recreational destinations. Opportunities abound but consumers need you to connect the dots. Buyers and sellers know the importance of agents and brokers. They seek your expertise and are satisfied with the results. Use your connections with past buyers and sellers to find new clients, then make their home process unforgettable and continue the chain reaction.

Erica Plemmons is an economist and Director of Housing Statistics

© 2020 Florida Realtors®

At the time of writing this the MLS of Indian River shows 628 Residential listings, 1,326 under contract/pending and 1,347 closed/sold for the year. Absorption rate is 15.13. That gives us an inventory of 41.51 days

Click link to see chart.

Lawmakers Pass and DeSantis Signs COVID-19 Legal Protections

By Christine Sexton, Colleen Burton

Gov. DeSantis quickly signed SB 72 after the Florida Legislature passed it, giving Fla. businesses new protection against lawsuits filed over COVID-19 claims. Florida Realtors supported the change to help brokers and clients avoid unknown legal risks.

TALLAHASSEE, Fla. – State lawmakers on Friday gave final approval to a bill that will shield businesses – ranging from nursing homes to grocery stores to restaurants – from coronavirus-related lawsuits, and Gov. Ron DeSantis signed it into law on Monday. The new law’s effective day is “immediately,” and the protections apply retroactively.

The measure, which the House passed in an 83-31 vote, was a top priority for business groups that had been pushing for the legal protections since the pandemic began in spring 2020. The Senate passed the bill (SB 72) last week.

Supporters of the legislation (SB 72) contended that shielding businesses from lawsuits related to COVID-19 was needed as the state continues to recover during the pandemic. The issue was one of Florida Realtors’ top priorities this year.

“The future of Florida depends on the ability of our businesses and health care providers to stay in business,” says Rep. Colleen Burton, a Lakeland Republican and a primary sponsor of the bill.

The bill establishes new rules in personal injury lawsuits related to COVID-19. For example, people who file personal injury lawsuits that don’t allege medical malpractice or violations of nursing-home resident rights must first get state-licensed physicians to sign affidavits that the defendants caused the injuries or damages.

Additionally, business owners are immune from liability if courts determine they made good-faith efforts to substantially comply with government-issued health standards or guidance.

Associated Industries of Florida President and CEO Tom Feeney said in a statement that the legislation was “the most pressing issue” for businesses that worked on a task force about reopening the state’s economy during the pandemic.

“Now, with this legislation, Florida businesses can predict their COVID-19-related litigation risks, remain viable and continue to contribute to the state’s economic recovery and well-being,” says Feeney, a former House speaker.

In pursuing COVID-19 medical malpractice claims or nursing home-related claims, people filing lawsuits need to not only obtain physician affidavits, they’re also required to prove that the health care providers’ actions were grossly negligent – a higher legal threshold than before. Health care providers that substantially complied with authoritative or applicable government-issued health standards or guidance related to COVID-19 would also have immunity.

“I think this provides doctors the appropriate level of protection for having done the right thing,” says Chris Nuland, a Jacksonville attorney who lobbies for physician organizations.

Physicians were the first to push for the lawsuit protections, asking DeSantis in March 2020 for an executive order to limit liability. The Florida Health Care Association, which represents nursing homes, and the Florida Hospital Association followed with similar requests asking for protections from civil and criminal lawsuits.

DeSantis did not reply immediately, but in recent months has publicly supported protections, especially for nursing homes, which were closed to outside visitors for nearly six months to try to prevent the spread of the virus.

DeSantis maintains that a fear of lawsuits has made nursing home operators afraid to reopen their doors to visitors.

In a statement, Florida Health Care Association CEO Emmett Reed said the bill will ensure nursing homes can “continue to direct their limited resources where they’re needed most – caring for residents and supporting staff.”

Source: News Service of Florida

Daily Economics

At the time of writing this we have 638 residential listings, 1,312 under contract/pending, 1,326 sold in the last 88 days leaving us with an absorption rate of 15. Click link to see chart.

Daily Economics 101

At the time of writing this we have 653 residential (condos and single family) listings in Indian River County. 1,297 Residential properties under contract and 1,276 Residential properties that have sold over the 85 days.

The absorption rate is 15.01.

15 Residential properties are absorbed into the market each day.

We have 43.6 days of inventory.

Pay attention to these numbers.

Daily Economics 101

At the time of writing this we have 683 residential listings with 1,291 under contract/Pending.  We have had 1,222 closings for the first 83 days of the year (it’s morning so the 83rd day isn’t done)  This is an absorption rate of 14.7.  14.7 houses are being absorbed into the market each day. 

With an absorption rate that high we only have 46 days of inventory for Indian River County Florida.

The daily number of properties going under contract continues to surpass the number of new listings. What does this mean? If demand continues and supply is low prices will continue to increase. Demand is what we need to pay attention to very closely.

Very Interesting for Economic nerds like me.

Simple Economics 101. Supply and Demand

As of this morning we have only 673 residential listing in the MLS for Realtors Association of Indian River County. That includes single family and condos. Under contract and Pending are 2x’s at 1,306. Sold for the First 82 days of the year is 1,197. That’s a daily absorption rate of 14.59. 14.59 residential properties are sold each day. So, with today’s listings of 673 we only have only 46 days of supply. With 1,306 set to close this month and next the absorption rate is going to grow exponentially

Now you can see with supply low and demand high why prices are increasing so fast.