Before the holiday

We want to go ahead and wish you a Happy Fourth of July, as we’ll be off Friday for the holiday.

We’re going out with an absolutely jam-packed edition full of interesting info to help us all better understand what’s happening in all areas of the market. Specifically, the growing gaps between groups of buyers.

In the luxury market, we are seeing a major gap between the behaviors of the ultra-rich and the rest of the buyers in this sector. At the other end, we look at the more troubling gap between the typical costs of homeownership and what buyers can afford. 

As we head into this Fourth of July weekend, this paints a general picture of the state of the market in this country, with growing gaps between groups of buyers depending on location, income, and a variety of other factors. 

As Brits who came to this country years ago, we are truly grateful for all the opportunities this country has given us. Owning a home still remains a crucial part of the American Dream, and we hope that we can continue to provide that opportunity for as many people as possible.

With that, we wish you a Happy Fourth and we’ll see you back here Tuesday.

– James and David

How the luxury real estate market is splitting up

Economic uncertainty and high interest rates are creating a clear divide between ultra-rich buyers (i.e., those with a net worth $30M+) and “merely wealthy” buyers in the luxury real estate market, according to a new report from Coldwell Banker via CNBC. Here are the key differences between the two groups:

• Ultra-Rich buyers:

  • Largely unfazed by market volatility

  • Continue making big purchases, often with all-cash offers

  • Use cash for leverage, speed, and to avoid high borrowing costs

  • Still see real estate as a hedge against inflation and a solid way to preserve or grow wealth

• “Merely Wealthy” buyers:

  • Much more sensitive to interest rates

  • Acting cautiously or delaying purchases due to economic and market uncertainty

  • More likely to reduce list prices or hold off entirely

Here are other key market trends from the report:

• More than half of luxury real estate agents say that cash purchases have increased in 2025.

• Despite overall gains earlier in the year, luxury home sales fell in May, especially attached properties, down 21.1% YoY.

• All buyers, especially first-timers, are more discerning, demanding high-end features and turnkey readiness due to financial pressures and elevated rates.

Our take

If we had to boil down what’s causing this split in the market, there’s one clear answer: cash is king right now, and those who have it are moving quickly. Ultra-wealthy buyers are forging ahead with all-cash offers to avoid high borrowing costs, while the merely affluent are slowing down, reducing list prices, delaying purchases, or pausing altogether. As agents, it’s important to recognize these differences – even among the wealthy – and tailor your marketing and approach accordingly.

Where buyers and sellers have the power right now

In May, the housing market posted a 55 on Zillow’s Market Heat Index. This index measures market competitiveness using indicators like price trends, inventory, and days on market. Scores above 70 signal a strong seller’s market, while scores below 28 point to strong buyer conditions. A score of 55 suggests a market in near balance.

Of the 250 largest markets Zillow tracks, here are the 10 markets where sellers and buyers currently have the most power.

Our take

Zillow’s data paints a clear picture: sellers still have leverage in the Northeast and parts of the Midwest, while the Gulf Coast and Southwest Florida are tipping toward buyers. Inventory build-ups are also softening markets in Texas, Colorado, and Arizona. The Market Heat Index covers 250 cities — not just the top 10 we’ve noted — so dig into your local markets and translate the trends into useful insights for your clients. That’s what will cement your role as your market’s expert.

The counties with the biggest drop in affordability

Homeownership is becoming harder to afford nearly everywhere. According to ATTOM’s latest home affordability report, 99% of the U.S. counties they analyzed saw a decline in affordability for single-family homes and condos in Q2 2025. 

The report measures affordability for average wage earners by calculating the income needed to cover key monthly costs (mortgage payments, property taxes, and insurance) on a median-priced home, assuming a 20% down payment and using the standard 28% front-end debt-to-income ratio. They compared the required income for these costs to wage data from the U.S. Bureau of Labor Statistics.

The findings are stark. The major expenses tied to a median-priced home required 33.7% of the average wage, well above the standard 28% benchmark. In 77.9% of counties (451 out of 579), homeownership costs exceeded that benchmark.

Here are the counties that became more unaffordable, as measured by their percent increase in unaffordability using ATTOM’s index:

1. Saint Lawrence County, NY: +50%

2. Fairfield County, OH: +34%

3. Mobile County, AL: +28%

4. Erie County, NY: +24%

5. Northampton County, PA: +23%

6. Jefferson County, NY: +20%

7. Lake County, OH: +19%

8. Richmond County, GA: +18%

9. Sarasota County, FL: +18%

10. Fayette County, PA: +17%

Our take

There is so much to take away from this data, but what stands out most to us is that the sharpest declines weren’t in the usual suspects. The pressure is spreading beyond major metros and into counties like Saint Lawrence, NY, Fairfield, OH, and Mobile, AL. This shows us agents that this isn’t just about home prices. It’s about a growing gap between what people earn and what it takes to buy. Make sure your advice and messaging reflect that reality.

The news that just missed the cut

• Zillow’s now enforcing its listing ban: here’s what to know

• Updated list of all the administration’s actions that impact housing 

• Use this tool to blur your home on Google Maps

• The starter home has a new look – and it’s tiny!

• Meet Taley Hunt – She’s closed over 400 homes in her 5 years as a new agent

Foundation Plans

Advice from James and David to win the day

Hard to believe, but we’re already halfway through 2025. Now’s the time to evaluate where you are, refocus on your year-end goals, and start laying the groundwork for 2026. That might sound early, but it’s not. To stay competitive, you need to think at least one quarter ahead, ideally two.

In today’s edition, we’re sharing tips and strategies to help you master your time and productivity. These tips have helped us personally, and we’re confident they’ll help you too.

Preparation is key – You don’t want to wake up and say, “What am I doing today?” You want to eliminate any anxiety and uncertainty about the week. Make sure you know what you’re going to do each day, and have a plan of attack ready BEFORE the day, or even the week, begins. We recommend spending an hour every Sunday night reviewing your past week and previewing the next one. Ask yourself questions about the previous week. Who did I talk to? How was my sales activity? Who did I meet? Who needs to be in my CRM? Then ask questions about this week. Who are my hottest targets? Who am I trying to meet? What family/personal stuff is on my agenda? Basically, use the past to plan ahead for the future.

Block your time and batch your activities – Once you’ve decided what you’re going to do each day, we recommend blocking your time and batching your activities. For example, give yourself a two-or-three hour block on Wednesday to farm an area or make all your follow-up calls. But also batch your activities. Instead of writing an offer letter one minute and then making a follow-up phone call the next, group your similar activities together so that you get into a rhythm and flow. Trust us. You’ll be more effective that way. 

Hold yourself accountable – Each Monday, every member of our team, including us, meets to discuss what we did in the past week. How many sales did we close? How many new contacts did we make? How many pending sales are in the pipeline? How closer are we to hitting our revenue goals? If you don’t have a team, get yourself a mentor or a person you trust and meet with them in person or via video. Make it a non-negotiable. The meeting doesn’t have to be long. Just enough to make sure you are staying on track.

This is just the beginning. In the next few editions, we’ll dive deeper with concrete strategies to help you finish the year strong and enter 2026 with momentum. Message us with any questions or concerns you might have. We want to hear from you and help in whatever way we can! 

Just in Case

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

“Your time is limited, so don’t waste it living someone else’s life.”— Steve Jobs

Each day is a gift – a chance to live the life that you want. Ruthlessly focus on your goals. Don’t let your past or the fear of being judged distract or paralyze you. Choose to live your life with an integrity that you can be proud of.

Have a wonderful holiday, friends. We’ll see you back here next Tuesday!

– James and David