What a win!
What a year it has been so far… $760M sold and in escrow to end Q3! We share that number not to brag (…okay, maybe a little) but to prove what we’ve been saying for months— just because there’s volatility in the market, it doesn’t mean the opportunity isn’t there.
No matter what happens, people will always be moving. Investors will always be looking for their next deal. Developers will never stop hunting for opportunities. When you position yourself well, nail your branding, know how to network, and continue to put in the effort, you’ll always have a chance at a deal.
– James and David
Fannie Mae’s recession predictions
Source: Unsplash
Fannie Mae sees a “modest recession” coming in early 2023. Their prediction is due to high inflation, rising mortgage rates, the Fed’s anti-inflation policies, and a lagging housing market. Here’s what Fannie Mae sees coming in Q4 and beyond:
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The Fed will raise rates another 0.75% in November, which will have a direct impact on mortgage interest rates
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Single-family home sales will decline 18.1% in 2022 and 20.8% in 2023
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Home prices will drop a full 1.5% nationwide in 2023, and year-over-year home price growth will turn negative by Q2
Our take
In this business, knowledge is power. We know some serious market shifts are coming, so how you spend the next 3-6 months is essential to your success. Right now, we’re wrapping up as many deals as we can before the end of the year. At the same time, we’re doubling our follow-ups and our lead-generating efforts. We’re telling our team to get back to door-knocking. Our goal is to have as many interested leads as possible going into Q1, so that activity can carry us through the spring.
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Good news for renters
Source: Unsplash
Rental price growth is finally showing signs of a slowdown nationwide. This reversal is happening for two clear reasons: 1) thousands of newly constructed apartments finally hitting the market and 2) an increase in homeowners choosing to rent out their homes, instead of selling them, when they move.
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In September, the median rental rate dropped to $2,002, up just 9% YoY
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That small jump is the first single-digit increase in a full year, and marks the slowest rent price growth since August 2021
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Rent growth is expected to slow further over the next several months as supply continues to increase
Our take
It’s good to see the rental market normalizing along with the housing market. Prices can’t grow forever! A market that self-corrects is a healthy market. It can be uncomfortable in the short term, but overall, it’s good that rent is becoming more affordable. It also helps renters save towards their down payments faster!
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Americans say “adiós” to the US
Source: The Week
Mexico has become a hot destination for American buyers due to the rise of remote work and the diminishing affordability of homes here in the U.S. While the economy in Mexico is still recovering from the pandemic, the country offers expats a lower cost of living, exceptionally affordable housing (at just $44K for a median-priced home), and strong purchasing power.
Here are top 5 countries where Americans moved to in 2021, and how many citizens relocated:
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Mexico: 16,022
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United Kingdom: 14,626
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Canada: 11,955
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Australia: 7,948
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Spain: 7,173
Our take
To all the 14,626 of you that moved to the UK… if anybody needs tips on where to eat, you know who to ask! But in all seriousness, the pandemic created a seismic shift in lifestyle. It used to be that people considered moving out of town, but now they’re taking it one step, and one flight, further. If you have a client looking to move abroad, reach out to your agent network and be a resource for them. This business isn’t just about making money, it’s also about being dependable for your clientele in creative ways.
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Schematics
The news that just missed the cut
Source: National Association of Realtors
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These popular home trends are on their way out
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18 cities fighting back against short term rentals
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The top 3 most profitable remodeling projects, according to the NAR
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Florida foreclosures are through the roof
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CEO of Douglas Elliman put his money where his mouth is
🎧 Rise Above the Ranks
In this week’s Rise Above the Ranks podcast, James & David share everything you need to know about making your social media presence work in your favor, from great lighting and killer content to choosing your platform and posting strategically.
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Engage with others. Every time you go on social media, make a point to connect with other people in your industry. Like their posts, comment on their stuff, send them a DM to share what you learned. That’s how you start establishing a tight-knit, engaged community online.
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Pick 5-10 content ideas. It can be daunting when you are starting out on social media. Don't get intimidated. Come up with ideas that fit you. Spend 3-6 months making this content weekly and see what happens. Re-evaluate then try something new if it’s not working.
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Give it time. Social media doesn’t work overnight. It can take 3, 6, or even 9+ months of consistent posting to start seeing results. But once you’ve built a following and established your presence, the results will come.
Q&A
You ask, James and David answer!
Q: What is the most important tool to provide my team with?
A: This is a great question because I think a lot of team leaders believe that such a magic tool exists! In reality, we believe the most important tool you can give is knowledge. New agents are hungry to learn. When you give them access to great information and on-the-job experience by letting them watch you work, that’s how you set them up for success.
We’ll be back next week with another answer to a real reader question. Submit yours here!
Just in Case
Source: Rocket Mortgage
If this is your first time reading this newsletter because you found us online or you downloaded our eBook about door-knocking, thanks for joining our community. What do you think of the newsletter? We always like feedback, so hit the reply and let us know!
See you on Friday
– James and David
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