How We Are Empowering Our Brokers – During COVID-19 – To Serve You Better…
To our Valued Clients, Customers, and our Brokers
In light of recent developments surrounding the spread of COVID-19, it has become clear that the world is facing an unprecedented event. We understand our clients will continue to have housing needs, but the health and wellbeing of our agents, clients, friends, tenants, families, and community will remain our top priority.
We are implementing the following precautions to address the spread of COVID-19 Coronavirus:
• Adhering to the Center for Disease Control (CDC) protocols and guidelines, at a minimum.
• We are balancing the needs of our clients who have housing needs while limiting open houses, avoiding large gatherings, and encouraging creative, efficient ways of exposing or showing homes during this crisis.
• We are maintaining a high level of cleanliness practices in all of our offices. While we assess the safety of doing so, we will continue to keep open.
For those attending open houses:
We are encouraging our agents to show homes virtually or by appointment only, but we are allowing individual agents and sellers to make that decision for now. We recommend the use of booties, soap, wipes, and hand sanitizers in common areas.
For our clients:
We are prepared to move our business online, from virtual meetings, video tours, FaceTime/Skype showings, hands-free open house registration, electronic payments, digital signatures, and online transaction management system. We are working hard to protect our clients, agents, staff, tenants and landlords to prevent the spread of disease, while doing our best to continue helping you buy or sell homes.
At this time, our offices are open but may close as needed. We encourage the use of phone, text, and email when communicating with our agents. We will move all scheduled events, trainings and seminars online. We will support our agents and help them effectively service your needs while ensuring their comfort and yours with how best to deal with this challenging situation. You are encouraged to call-in to speak with an agent and to set up appointments in advance.
Please visit our website for office and broker contact information.
We hope that you stay healthy as we all navigate this together.
The Federal Reserve swept into action on Sunday in an effort to save the U.S. economy from the fallout of the coronavirus, slashing its benchmark interest rate by a full percentage point to near zero and promising to boost its bond holdings by at least $700 billion.
Underlining the sense of urgency amid mounting recession fears, Fed Chairman Jerome Powell told a hastily assembled press briefing by telephone that the virus’s disruption to lives and businesses meant second quarter growth would probably be weak and it was hard to know how long the pain would last. That left him advocating a clear role for fiscal policy to help cushion the blow.
“The thing that fiscal policy, and really only fiscal policy can do, is reach out directly to affected industries, affected workers,” Powell said. “We do know that the virus will run its course and that the U.S. economy will resume a normal level of activity. In the meantime, the Fed will continue to use our tools to support the flow of credit.”
The Fed pulled out some of the biggest weapons in its arsenal. It’s key rate is now zero to 0.25%, matching the record low level it hit during the 2008 financial crisis and where it was held until December 2015.
The central bank also announced several other actions, including letting banks borrow from the discount window for as long as 90 days and reducing reserve requirement ratios to zero percent.
In addition, it united with five other central banks to ensure dollars are available around the world via swap lines. Powell said that he did not think negative rates, which have been used in Europe and Japan, would be appropriate policy in the U.S.
President Donald Trump, who as recently as Saturday attacked the Fed for not lowering rates faster and further, quickly expressed support for the move
“It makes me very happy and I want to congratulate the Federal Reserve,” he said. “That’s a big step and I’m very happy they did it.”
Treasuries surged and U.S. equity futures tumbled at the start of another volatile week as investors responded to the rapidly escalating economic impact from the coronavirus and bet it will overwhelm the policy response. The Bank of Japan said it was bringing forward to Monday a meeting scheduled for later this week.
The Fed’s emergency action came as more and more evidence emerged that the U.S. economy is being hit hard by the virus. On Sunday alone, Ohio ordered all bars and restaurants closed indefinitely, Nike shuttered all its stores at least through March 27 and airlines announced drastic cuts to their international flight schedules.
Businesses are instructing staff to work from home, and travel and entertainment are being particularly affected as people take steps to observe social distancing to avoid infection.
As the fallout spreads across the economy, the risk of a recession is mounting. Goldman Sachs slashed its GDP forecasts on Sunday. It’s now predicting zero growth in the first quarter and a 5% contraction in the second.
Powell, who said he planned to do some telecommuting himself to set a good work-from-home example, told reporters on the call that the rate decision Sunday is in lieu of the Fed’s regularly scheduled meeting this week, planned for Tuesday and Wednesday.
He also said that the quarterly forecasts that would have been released at that meeting had been scrapped in light of the current uncertainty caused by the virus and would probably next be updated in June.
With Sunday’s announcement, the Fed is firing some of the biggest guns in its arsenal, but economists say without a similar, forceful response from the government, the country’s record 11 year expansion could end in recession. Stocks have already tumbled into a bear market.
“The Fed had to make this move, and waiting would have been a grave mistake,” said Michael Darda, market strategist at MKM Partners. “The problem is there is a tsunami coming and the Fed is likely to be overwhelmed by it, and the markets know that.”
The Fed said it will keep interest rates near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”
The central bank acted as leaders from the Group of Seven nations, including Trump, are set to discuss their virus response on a teleconference on Monday. Central bankers and investors have pressed governments to do more to support their economies given monetary ammunition is running low and because fiscal policy can be targeted at corners of an economy that need it most.
“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals,” it said.
To support smooth functioning in the Treasury and mortgage backed securities market, the Fed said it would lift its holdings of Treasury securities by at least $500 billion and of MBS by at least $200 billion.
Cleveland Fed President Loretta Mester cast a lone dissent, preferring rates were instead cut to a 0.5%-0.75% range.
The Fed’s actions followed the Trump administration and Congress’s first comprehensive steps Friday to assure the public that it has a coordinated public health and fiscal policy response.
See the original article on Bloomberg.com
Cascade Sotheby’s International Realty participated Bend’s First Friday event on March 6th at our Downtown Real Estate Gallery where hundreds of people toured the downtown shops and restaurants. Hosted by brokers Corinne Clarke and Chris DeJon, live music was provided by guitarist Justin Lavik and artwork from local artist Julie Winter was on display. A representative from Northwestern Home Loans was available to discuss today’s record low interest rates.
Julie Winter of Bend, Oregon is a printmaker, educator and graduate student in Visual Studies at Pacific Northwest College of Art (MFA August 2018). Julie has served in many roles at Atelier 6000/Bend Art Center including volunteer, core instructor, Studio & Gallery Director, Interim Executive Director and artist member. Her recent work is exploring non-toxic electro-etching techniques and combining them with woodcuts and monotypes as she continues to incorporate the Central Oregon landscape into the symbolism of place and self.
I explore perceptions of place and how these are represented in landscapes, specifically how cultures walk upon and are a physical presence on the surface of the earth and the traces we leave and pick up. I investigate the intersections of the internal and external landscapes and how these become transitional spaces for connection, relationship, translation, and transformation. I set up systems of observation and collection as ways to inventory the traces and then translate the information into orchestrated landscapes. I use the process of printmaking as a translation device for this information. My goal is to invite the viewer into a conversation about their relationship to place and with others.
Sotheby’s International Realty is pleased to announce that its affiliated brokers and sales professionals achieved more than $114billion USD in global sales volume, the highest annual U.S. sales volume performance in the history of the brand. $102 billion USD of the global sales volume was achieved in the U.S., marking another record accomplishment for the brand.
“In 2019, the Sotheby’s International Realty® brand continued to achieve solid growth,” said Philip White, president and chief executive officer for Sotheby’s International Realty. “The brand expanded into new countries and territories and entered new markets in the U.S. We continued to make strategic business decisions that benefitted both our independent sales associates and affiliate companies. I am immensely proud of the hard work and dedication from our vast global network, and I look forward to continuing this momentum in 2020.”
Propelled by a strategic business move in March 2019, when Sotheby’s International Realty integrated its affiliate network and company-owned brokerage into one global organization, 50 new Sotheby’s International Realty offices were opened, bringing the brand’s presence to 1,000 offices in 70 countries and territories and more than 23,000 affiliated sales associates worldwide.
Sotheby’s International Realty continued to lead the category with the roll-out of exclusive marketing affiliations and first-ever technology launches, announcing it will soon unveil a new, fully integrated website. The brand’s existing website, sothebysrealty.com, saw another record year with more than 34 million visits, a 14 percent increase year-over-year. In addition, Sotheby’s International Realty was the first real estate brand to launch and implement mixed reality to its Curate by Sotheby’s International Realty sm augmented reality app, which merges the real world with virtual home staging. The platform can be utilized in various homebuying and selling scenarios, and particularly benefits agents and developers to help prospective buyers envision their new home. To support the daily business needs of the network’s more than 23,000 independent sales associates, the brand unveiled Current by Sotheby’s International Realty® a robust marketing suite of technology tools consisting of best-in-class and exclusive apps, which provide sales associates with a distinctive and competitive edge in the market. For partnerships, the brand entered into an affiliation with Bloomberg.com as the exclusive launch sponsor for a new luxury properties marketplace.
The Sotheby’s International Realty brand and its independent sales associates continued its support for New Story, the brand’s charitable partner and a certified 501(c)(3) non-profit organization. As a result, 83 families, who were among those who lost their homes in the 2017 earthquakes, were able to move into their new homes in Morelos, Mexico. A total of 153 homes in Haiti and Mexico were funded through the initiative.
This year observed significant growth for the brand’s existing affiliate companies in the United States through recruitment efforts and strategic mergers and acquisitions. Most notably, the brand increased its market presence in Brooklyn, New York; the Greater Boston area, Massachusetts; and Indiana. The brand also entered several new key markets last year, expanding the Sotheby’s International Realty network’s presence to 43 states across the country.
Outside the U.S. the Sotheby’s International Realty brand achieved more than $12 billion USD in sales volume and continued to expand into key markets around the world. In Europe, the brand grew its presence in Monaco; France; and Berlin and Binz, Germany. New offices were also opened in Doha, Qatar; and Paphos, Cyprus, expanding the brand’s global presence in marketing luxury listings. In the Caribbean and South America, the brand saw growth in Zapallar, Chile, an upscale residential community located two hours outside of Santiago; and agreements were signed to expand into the Anguilla territory. In the Asia-Pacific region, new offices were opened in Tauranga, New Zealand; and Port Douglas, Hobart, and Perth, Australia.
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It’s hard to wake up on the wrong side of the bed when your lavish private suite has a vista of city lights, mountains, vineyards, sunsets or the sea.
Glass Oceanfront Modern
An organic fusion of glass, slab stone and steel create a stunning, yet simplistic, seamless design connecting nature and architecture offering amazing ocean views and access. This home spans 3,348 square feet on 1+ acre with unparalleled quality and construction!
Masterpiece in the Sky
A modern masterpiece in the sky. Quality, design and expansive views come together that make this one of the most private and exclusive gated properties in Oregon. An entertainers dream home with Lake, River, Mountain and City views. Waking up and gazing out at this view will surely be the pinnacle of one’s day.
Private Oceanfront Estate
Inspiration, thought and craftsmanship went into the details of this private oceanfront estate home on the Oregon Coast. This estate home provides a level of tranquility and comfort that is rare on the Oregon Coast. The gated entrance leads to a circular driveway framed by a peaceful coastal pond that spreads alongside the main house to a guest house/garage with a swim spa. The main house is oriented 15 degrees to the south to take advantage of sweeping ocean views and built on 44 steel pilings. Main level living with oceanview master bedroom, living room and gourmet kitchen. The spacious deck just steps away from miles of sandy beach.
Cascade View Home
Here is a home quite like no other, built following appropriate mathematical elements in its design, harkening the builders of old, creating what is known as the Divine Proportion. The Divine Proportion exists everywhere in nature, but here the principle is applied to modern architecture. Famed cathedrals and the like adhered to this concept in an attempt to inspire all those who entered, and this home does not disappoint. Upon entry, the pavered drive is reminiscent of an Italian villa courtyard with authentically proportional solid limestone columns quarried in Indiana, shaped in Michigan and sent by train to Oregon. From a grand foyer, you can see the home is perfectly symmetrical, each wing a mirror image of the other, perfectly proportionate.
World Class Ocean Views
Unparalleled oceanfront at Chapman Point. Constructed by renowned builder Rich Elstrom. Distinguished by world-class views of Haystack Rock, Ecola State Park, and the ocean surf from the living and family rooms and master suite; the chef’s kitchen, wine cellar, and four gas fireplaces. The west side deck gives you ample room to lounge and enjoy your view and a hot tub for soothing comfort.
How the luxury world is changing, and how real estate agents can adapt.
It’s been a while since luxury was synonymous with excess. Today, what matters most to high-end consumers is that their purchases have a larger positive impact on the world, and provide them with a meaningful personal experience. Brands are looking beyond mere material opulence, and thinking about how to create a genuine sense of novelty, authenticity, and global stewardship — socially and environmentally — through the goods and services they provide.
These social responsibility and experiential purchases trends are alive and well in the world of luxury real estate: homebuyers want properties that complement their individual lifestyles while minimizing their ecological impact, and they’re connecting with agents and listings through inspirational content and storytelling on social media.
Yet the real estate market is only one piece of the luxury puzzle. Time and time again, the most successful agents are able to build relationships and close deals because they understand the world their clients live in.
Here are three macro trends that are shaping today’s luxury market — and tomorrow’s.
1. Conscious consumption
Luxury consumers tend to be well-informed, and the majority are concerned about climate change: 56% of those 55 and older, 62% of those between 35 and 54 years old, and 70% of 18 to 34-year-olds. Moreover, that last group — millennials and Generation Z — will constitute as much as 40% of the luxury market by 2025.
This emerging demographic cares more than its predecessors about ethical and transparent production processes, philanthropic brand purposes, and personalized experiences. And 89% are willing to spend more on companies they consider ethical and sustainable.
It’s no surprise, then, to see leading fashion brands embracing environmental awareness. Stella McCartney’s “World of Sustainability” platform is just one high-profile example of how brands are leading the conversation on conservation. Others are sourcing premium materials for products, and creating distinctive, eco-friendly packaging that lends itself to a unique — and highly Instragrammable — unboxing experience for social media-savvy consumers without creating unnecessary waste.
For agents, this means that every aspect of your engagement with a client should be considered through the lens of transparency and sustainability. Has your business made strides to become more efficient and less wasteful? Do you have a clearly defined set of ethics? Give these initiatives pride of place on your website and social media channels so that clients can identify you by your values. And consider your interactive offerings: make every open house an experience, whether that’s laying out apéritifs at a remarkable property at sunset or sharing a virtual reality showing with a remote client. Your clients may not be unboxing a home, but the experience should impart joy nonetheless.
2. Purposeful collaboration
Individuality and creativity are of central importance to the emerging affluent consumer, so it comes as no surprise that exclusive collaborations are still a mainstay in the luxury market. However, their magic could be starting to wear off: after all, these collaborations — and the buzz they generate — often signify social status over social engagement. Without a fresh, forward-thinking take, such partnerships could fall out of favor.
In the 2020s, expect to see leading luxury brands keeping the collaboration ethos alive by embarking on innovative, cooperative projects that resonate with the values of affluent consumers while taking a longer view of social and environmental issues — subverting and exceeding their expectations as a result.
Think about the collaborations that would feel authentic to your business. Is there a leading renewable energy company in your market you could partner with on a project? A notable designer? Without going overboard, seek out partnerships that make sense from a brand perspective: collaboration should feel in step with the work you’re already doing while exposing your initiatives to a fresh audience.
3. In-person touchpoints supported by digital tools
A major factor in the growth of the global luxury market has been a year-over-year increase in online sales. And that’s only going to get stronger as millennials and Generation Z drive even greater engagement on digital channels. Today, around 10% of luxury sales take place through ecommerce; by 2025, that’s projected to be 25% — from one in 10 purchases to one in four.
In response, brands are more focused than ever on creating “phygital” touchpoints that merge the physical and digital worlds into a frictionless, omnichannel experience. Data analytics, facial recognition, and Internet of Things (IoT) sensors are just a few of the technologies that will help companies build more complete customer profiles, providing adaptive, hyper-personalized service while also enabling consumers to connect more deeply with their favorite brands.
Agents will be familiar with balancing digital and in-person customer interactions. Whether through virtual reality tours that enable potential buyers to visually inhabit a listing, or the rise of social media as a way for agents to connect personally and professionally with clients while positioning themselves as industry experts and lifestyle influencers, digital is on the rise in the luxury real estate space. But it doesn’t replace the personal touch. Customer relationship management (CRM) systems leverage data analytics to keep agents informed of their clients’ needs, preferences, and milestones, reminding them when to reach out to clients and why. Personalized service has long been a central pillar of luxury real estate, and digital tools are making it even easier for agents to reach out in person.
The merging of online and real-world experiences, along with the aforementioned trends in luxury, provide the background context in which today’s luxury buyers live and work — and it sets the tone for how they purchase homes as well. Whether it’s marketing materials that grab attention or listings more appealingly designed for social, agents should be thinking about how to engage with clients who are already attuned to the cutting edge of luxury.
See the original article on Inman.com
Here are 5 reasons why investors should add income-earning real estate properties to their portfolio
For 2020, investors should seriously consider adding real estate assets that generate positive cash flow to their portfolio versus putting more money away in a 401k or IRA. By generating multiple streams of income through revenue-generating real estate, you’ll be better prepared if you face a major “outlier event” such as an illness, major home repair, major stock market correction or loss of a job.
While stocks soared almost 30 percent higher last year, as measured by the S&P 500, many analysts are predicting a 10 percent correction this year. And while a recession is never certain, many believe a more reliable statistic is that U.S. stocks fall at least 10 percent from all-time highs once every 18-24 months.
So here are the top 5 reasons that investors should add income-earning real estate properties to their portfolio this year:
Prepare for Economic Change – Yes, we’re living in the longest bull market in history with the stock market skyrocketing to new highs every week. But what happens if a breaking news event, global recession or the 2020 election suddenly cause your 401k portfolio to drop by 50 percent? While this fall in value may sound drastic, many investors saw this decrease on their financial statements during the Great Recession in 2008 and 2009. So don’t wait any longer to invest in real estate cash flow assets. When the next downfall happens (and it will), you will not feel as big of an impact.
Beat Inflation with Real Estate Returns – Banks are now paying pitiful interest rates that don’t even come close to keeping up with inflation. Many investors do not understand that they are losing buying power every year by keeping money in a savings account. For example, if inflation is 3 percent and your money market is making 1.5 percent, you lose 1.5 percent of every dollar. So, a dollar, after a year, is really worth only 85 cents. In comparison, real estate investments tend to go up consistently if you research and buy the right property at the right time.
Generate Rental Property Income – You want to start investing in property that can result in positive cash flow every month. For example, if you buy a condo, and your mortgage is $2000, but you can rent it for $4,000, you’re making $2000/month income. Yes, you are still in debt for owning the property, but your renter is paying the mortgage! And if you already own a home or vacation property that is empty part of the year, why not consider renting it through Airbnb to generate additional cash flow?
Increase Your Tax Savings – There are many tax benefits for real estate investors. With the right tax strategy, investors can put money back in their pocket by simply investing in the property. Home renovations, maintenance, new equipment, expansions, property management fees, insurance and more may all be tax deductions. Investors can also gain tax breaks if the property is rented out via Airbnb, VSCO or others.
Produce Revenue from Land Assets – To increase your income based on the land, consider investing in a property that grows produce. The fruits and vegetables can feed you and your family, along with providing additional income. The land may have apple trees, a vegetable garden or honey bees, which can all generate positive cash flow.
Yes, you will need to take out a mortgage unless you have a lot of cash to invest. However, it’s important to understand that there is a difference between good debt and bad debt. Good debt results from investing in an asset that generates income. Bad debt is racking up credit card debt. It’s impossible to get ahead with interest rates on credit cards soaring, so take time to invest in assets that will generate monthly cash flow back to you instead.
Your overall goal should be to generate enough cash flow from real estate assets to become financially free. So if you buy 5 rental properties that generate $2000/month, it quickly becomes $10,000/month in positive cash flow income. If this $10,000 monthly cash flow income covers your total expenses, then you are officially out of the 9-5 rat race and can relax more.
Instead of buying that boat that you don’t need, put the money into a real estate income-earning property this year. So start researching real estate assets across the U.S., work with people who understand the space, and start adding positive cash flow properties to your portfolio in 2020!
See the original article on FoxBusiness.com
Enjoy our Cascade Living events and newsletter! We cover notable events and news happening in Central Oregon, Portland, Southwest Washington, The Columbia River Gorge, and The Oregon Coast.
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