The most important terms about real estate industry
Joel Real Estate team consists of scientists from and somehow connected to the real estate business, and employees striving to connect people getting into this business, people already in it, and the different kind of information that might be needed for them to conduct it. We do our business responsibly, and that is why we are going to start from the very beginning, introducing people to the real estate basics. For those of you who are coming to this business, and those of you who are considering to enter the most dynamic job in the USA, the real estate, this will be very helpful. And for those already in it, it might be interesting to have a look at where they started, and throw us a feedback if they consider that there is something else that we should advise people at the very beginning. First things come first. So, here we will say something about the definition of real estate, and also about different kinds of it. Real estate is the type of property that consists of the land and the building or buildings on that land. Together with the flora and fauna, water, minerals etc. It is mostly regarded as a market of houses, or, in other words, of residential living. Nevermind if that is the most common type of ownership regarding real estate, that is just one type of real estate. There are three types of real estate:
- Residential-The market of residential real estate in the USA includes land, houses, condos and townhomes(individual houses in the city, connected to each other side by side)
- Commercial– In USA, the commercial real estate are office buildings, buildings of
warehouses, and also retail store buildings.
- Industrial– the USA commercial real estate are factories, farms, mines, and other sorts of land and buildings for conducting a business in an industry.#
After separating the types of real estate, and saying what types there are, we must also separate types of property. Being that there might be the confusion when using these terms, and it is very important to know the difference if you seriously want to get into real estate business, there are two types of property:
- Personal property, which includes such intangible property as stocks, or bonds, or different kind of investment. Furthermore, it includes movables, or chattels, such as computers for example, or beds and clothes. Also, it includes fixtures, for example, washing machine.
- Real estate property or just real estate are land and buildings, but with the rights to use them.
To explain further the difference between the personal property and real estate property, we will say that you can have personal property on things bought and installed in the land or build the lessor permitted you to use, but the real estate ownership on land and the building is in hands of the lessor. The real estate doesn’t exist without the owner. Real estate is, put into simple words, the land and all the improvements on it. While renters have permission to inhabit the land and the buildings, and by that regard that kind of, we can say, limited ownership of personal property, the term real estate is used when we discuss the real owner of that property.
The USA real estate market checkup
The insight into the data about the strongest real estate market in the world
- 5.200.000- The number of residential real estate sold all over the USA during the year of 2015.
- 510.000- That many, out of 5.200.000 totally sold homes in 2015, were newly constructed homes.
- 134.700.000- Housing units occupied in the real estate market of the USA. The average, owned by the owner, the home was built in 1976. The average age of the homeowner is 55, and he/she has lived in it for 14 years on average.
- 62.5%- Percentage of residential real estate owners (living in them) in the USA.
- 290.000$- The average price of new homes in the USA for the year of 2016. It is 1% higher comparing to the average price of this kind of real estate in the USA in 2015.
- 4%-5%- Projected rise in the national home price index for this year.
- 5%- Rise in the home price index for this year. 3.3% If we talk about the real rise. Which is even higher that it was in 2015(4.3%)
Realtors(*real estate agents or agencies)
The information about real estate agents and real estate agencies in the USA
- 86.000- The number of real estate brokerage companies that conduct their business in the USA
- 2.000.000- Yes, you read well, two Million active real estate licenses are there in the real estate market of the USA at the moment
- 73%- the percentage of realtors specialized in residential real estate
- 62%- This much of all realtors are female.
- 53- The average age of a real estate agent in the USA
- 10- Years of experience of average real estate agent in the USA
- 40- Hours a week worked by the average realtor
- 39.200$- Average income of a real estate agent in 2015. That was a decrease comparing to 45.800$ in a year before.
- 73%- share of real estate agents of graduate degree and above, of which 61% are bachelor’s and college degree holders