Home Rental industry Real estate market overview: Burton Wilkins and Neil Anders on the state of the market

Real estate market overview: Burton Wilkins and Neil Anders on the state of the market


As the inflation rate fell from its four-decade high of 9.1% in June to 8.5% in July, American citizens are looking for ways to save money, boost their incomes and to invest smartly. In times of volatility, many people see real estate as a solid option for both increasing cash flow and investing for the long term. As real estate appreciates over time, uninformed real estate entrepreneurs and investors can fall prey to the market. With nuanced Federal Reserve policy decisions and their effect on mortgage rates intersecting with regional market nuances in different ways, real estate investors, contractors, homeowners and clients are trying to navigate this complex mix of factors.

As with many industries, real estate has come a long way since COVID-19. In addition to new norms in real estate sales, such as virtual tours, the real estate industry as a whole is reacting to new trends in American business and personal life. Since the start of the pandemic and to this day, many residents and businesses located in major coastal cities have moved to areas with more space and lower taxes such as cities in Florida, Texas and Atlanta. On the other hand, however, a handful of these coastal towns in states that would have lost residents may never have seen the dramatic decline reported, such as towns in California. Additionally, many suburbs and towns surrounding Manhattan, such as other New York cities as well as cities in New Jersey and Connecticut, were actually beneficiaries of the exodus from New York.

With many variables in play, we sat down with industry leaders Burton Wilkins and Neil Anders to get their take on current market conditions.

Interview with Burton Wilkins

Burton Wilkins is a luxury real estate agent working at ONE Sotheby’s International Realty and Goldcoast Sotheby’s International Realty. Known for his client-centric approach, Wilkins has risen to the top of the luxury real estate markets in South Florida as well as New Jersey. Specifically, Wilkins focuses on Miami, Florida and Ocean City, New Jersey. Leveraging his experience in the hotel industry, his knowledge of the market and his network of international clients, this bi-regional luxury agent has concluded major agreements in both cities.

Do you think house prices will continue to rise? Why?

I believe house prices will stabilize over the next 6-12 months as rates continue to rise. Inventories continue to remain incredibly tight, keeping prices steady.

Do you think the residential rental market will continue to grow? Why?

No, I think the long term residential rental market will stabilize and slowly decline over the next 6-12 months. The reason for this is that it is currently cheaper for consumers to buy than to rent.

How will working from home (and hybrid models) affect the office space market next year? How will this intersect with residential markets?

The new normal of a remote work lifestyle has given the business owner the opportunity to get rid of their office space. Now that that monthly cost is gone, business owners are applying that budget to their homes. I’ve had a handful of clients who upgraded their homes due to this situation.

The corporate employee spends more time at home without having to go to the office. This gives them the opportunity to live further from the city and/or in a place where they could not live before. This consumer also values ​​their home more than ever since they spend most of their time at home. This means they need more space to live and work from home, especially if their partner does the same.

What do you think is the most overvalued real estate trend right now?

Buy real estate with BTC or Cryptocurrencies. A large majority of sellers and title companies will not accept it. It is more a phenomenon than a reality.

What do you think is the most undervalued real estate trend right now?

Virtual tours, Metaverse and comparable technologies.

Interview with Neil Anders

Neil Ander

Neil Anders is a Certified Mortgage Advisor and Vice President of Sales at Trusted Rate. With two decades of industry experience, Anders’ name is synonymous with both world-class sales and service. In his previous position as branch manager of American Financial Network in Newport Beach, Calif., Anders played a central role in helping the branch achieve an average turnover of $50 million per month. Now as Vice President of Sales at Trusted Rate, Anders and his team help potential home buyers buy new homes, refinance their current mortgage, and determine pre-approval terms for loans. Anders has personally invested in over 7,000 transactions throughout his professional career.

Do you think mortgage rates will continue to rise? Why?

Yes, I think mortgage rates will continue to rise. Although government intervention to lower interest rates has helped stabilize them, I believe we have reached a stage where the economy needs additional stimulus, and the Federal Reserve will be forced to raise rates of interest once again. But this increase can also lead to an increase in mortgage rates.

The good news is that some experts believe these increases may not be large enough to have a substantial impact on homeownership. Even if they were, there would still be other options like refinancing a loan or asking friends or family for help who might be able to help with the payments until the things calm down again.

How will working from home (and hybrid models) affect the office space market next year? How will this intersect with residential markets?

The office market is changing. Employees are using work-from-home and hybrid models more frequently, which means they’re spending less time in the workplace than before. The need for office space is likely to decrease.

Small places are now in increasing demand because of this. Employees who don’t use their workstations all day don’t need as much space. Landlords have started renting smaller rooms and apartments to meet this trend.

Flexible leases are becoming increasingly popular. Landlords are extending shorter rental terms to meet the needs of employees who want to work from home but may only need an office a few days a week or a few days a month.

Due to the virtual nature of work, it is now possible for companies to rent space without actually occupying it themselves. Instead, they can use conference rooms and other amenities whenever needed without incurring additional costs for rent or utilities. By only renting when needed rather than paying for something that may sit empty for weeks, they can save money (even months).

What is the most important factor real estate investors currently consider when choosing a new market?

Local rules and regulations are the most important consideration for real estate investors looking to expand into a new market. The laws and ordinances that govern the region can have a significant bearing on the amount of profit that can be extracted from an investment. If there are an excessive number of rules that prevent you from earning money, it is possible that investing in this place is not a wise decision for you.

What do you think is the most undervalued real estate trend right now?

I think the shift from traditional brick-and-mortar businesses to digital businesses is the aspect of the real estate market that is currently the most undervalued.

We have seen many businesses shift away from physical operations to focus on their online presence. However, I think we’re going to start to see more and more of these dynamics change, especially as technology becomes more advanced and accessible.