Finding real value

Real estate is a relationship business, and its currency is reliable information. That’s why we started this newsletter, because when we were coming up, we knew the true value of good info. Sound information is valuable in how it builds relationships and profits.

In our third story today, we link to a report that was full of valuable info, that we couldn’t fit it all in our summary. We encourage you to read it, and to share it with any potential investors. It’s that type of info that can really help you stand out.

And if you want even more ways to stand out, we have a great announcement. We are now offering a FREE 14-day trial where new members of Estate Elite can try out the membership before paying. You’ll get access to four–yes, four!–live events with coaches where you can truly get some of the best advice in the business–proven strategies, actionable tools, and industry insights into the 2025 market. This is a great time to give it a try!

– James and David

Sharp declines in pending sales and new listings

Pending home sales dropped 8.4% year over year in the four weeks ending January 12, the sharpest decline since October 2023. Meanwhile, new listings saw their biggest annual decrease since September 2023, as prospective sellers remained on the sidelines. That’s according to Redfin’s latest market update. Here’s what else the company reports:

• Redfin's Homebuyer Demand Index—a seasonally adjusted metric tracking tours and requests for buying services from Redfin agents—has dropped 11% month over month, reaching its lowest point since August.

• Mortgage-purchase applications jumped 27% this week to their highest level in nearly a year

• The median housing payment nationwide is $2,586, its highest level in more than two months

• The median home sale price is $379,609, up 5.8% YOY

• Daily average mortgage rates hit 7.26% this week, hitting their highest level since May 

Our take

With the new year just beginning, it’s too soon to predict how the 2025 housing market will unfold. Just look at the above data. Yes, we could see that drop in pending sales coming, given how high housing costs have priced out many potential buyers. But then again, mortgage-purchase applications surged this week to their highest level in nearly a year, hinting at the possibility of improvement in pending sales in the weeks ahead. So we’re definitely taking a wait-and-see approach.

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What to expect from existing home sales in 2025

U.S. existing home sales are projected to average approximately 4.22 million in 2025, according to ResiClub's analysis of projections from 16 leading forecasters in the field. Below are the detailed forecasts, along with historical data for context.

Our take

Two of the central questions in residential real estate right now are 1) whether existing home sales have bottomed out and 2) whether we’re now on a path to a sustained recovery. ResiClub's latest report offers valuable insight here. If existing home sales total 4.22 million in 2025, that would be an improvement over last year, while still pointing to a constrained market with limited activity.

Foreclosures were down in 2024

In 2024, lenders issued 322,103 foreclosure filings nationwide – i.e., default notices, scheduled auctions, and bank repossessions. According to ATTOM’s latest update, this marks a 10% decrease in foreclosures from 2023, a 1% drop from 2022, and a 35% decline compared to 2019, before the pandemic disrupted the market. Foreclosure filings in 2024 were also 89% lower than their peak of nearly 2.9 million in 2010.

Here are the states and metropolitan areas (MSAs) with the greatest number of foreclosure starts in 2024:

Our take

This report is packed with excellent insights. For instance, we didn’t even touch on its section about REOs (bank repossessions). Investors will love it, and we definitely recommend sharing this report with them. As we said above, real estate is a relationship business, and its currency is reliable information. In a world filled with social media noise and untrustworthy sources, you want to be the agent who consistently provides dependable, actionable, and profitable insights. The more you do this, the more you’ll stand out from the competition. Trust us, it works.

The news that just missed the cut

• Where does L.A.’s luxury home market go from here

• More homes on the market are going ‘stale’ due to this big listing mistake

• How to close sales by engaging absentee owners

• A quick guide to real estate automated value models

• More resources L.A. residents can use to rebuild

Foundation Plans

Advice from James and David to win the day

As we noted in our first story, new listings have dropped as sellers are sitting on the sidelines at the moment. But we believe that as the year progresses, they will jump back in, and more existing home sales will happen this year than last. We want you to be ready, so today we want to point out common mistakes that happen in listing appointments and pitches. This way, you can avoid them!

Don’t be on time, be early – We’ve never forgotten the lesson we learned the hard way from our first managing director. Early is on time, on time is late, and if you’re late, you’ll lose. Although clients have different tolerance levels for showing up late, err on the side of caution and always be early. If you arrive too early, use the time to explore the neighborhood, and familiarize yourself with streets, amenities, parks, and other homes for sale.

Park on the street, not the driveway – As much as you can, don’t be an imposition or a cause of stress on your potential client. If you park in their driveway, you’re either blocking someone in or taking someone’s spot. If their teenager has to drive to baseball practice and you’re blocking them from leaving, then your appointment groove will be messed up with an awkward interruption. Park in the street.

Your appointment is about the client, not you – Obviously, as part of your listing pitch, you’ll want to talk about yourself and what you’re bringing to the table. But always make it all about the client–their needs, motivation, time frame and priorities. Don’t discuss your busy schedule, ongoing deal negotiations, the challenges you’re facing with your other clients, or upcoming travel plans. Your client is not interested in all of that. Instead, focus on showing how you can address their real estate needs.

Make sure you literally ask for the business – If you’ve structured your pitch correctly, your close should naturally flow from your presentation. But don’t forget to say it and ask for the business. Don’t just assume the clients understand, and don’t leave the issue dangling. Make sure you seal the deal.

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Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

As recent events have shown us, life is fragile. So don’t waste the time you have. Each day is a gift and a new opportunity to lead the life you want. It’s a fresh start to becoming the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. You can do it!

We truly hope you have a safe and wonderful weekend. We’ll see you back here on Tuesday!

– James and David