Down the stretch we come!
We are stuffed, but we're ready to tackle the last few weeks of the year. We even got some good news that mortgage applications increased the week ending November 23rd, which shows that buyers are out there even as we head into the holidays.
This tells us that we can still make the most of the end of the year, so let's challenge ourselves to finish out 2022 strong!
– James and David
Investor purchases sank in Q3
Source: Unsplash
Redfin reports that investor purchases dipped 30.2% YoY in Q3. Outside of 2020 Q2, this is the largest investor buying drop since the Great Recession. Investors also lost market share for the second quarter in a row, as they cut purchases. Despite these concerns, major investors like JPMorgan continue to show strong interest in the single-family market.
Here are the pandemic boomtowns where investors pumped the brakes on purchases, along with the percentage drop-off YoY:
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Phoenix, AZ (-49.4%)
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Portland, OR (-47.4%)
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Las Vegas, NV (-44.8%)
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Sacramento, CA (-43.2%)
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Atlanta, GA (-42.2%)
Our take
Like investing anywhere else, investing in the housing market is cyclical. Over the last couple years, we saw investors pour money into single-family homes at an unbelievable rate, so as interest rates went up, it makes sense that some had been hesitant to keep investing. However, as the example of JP Morgan indicates, some investors feel otherwise. We continue to think there’s no better investment than buying a home, and that’s what we remind our clients every day.
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Housing starts decline
Source: Unsplash
Single-family homebuilding fell sharply in October in all four regions, dropping to its lowest rate since May 2020. Single-family housing starts, which account for the biggest share of homebuilding, tumbled 6.1% to a rate of 855,000 units. Multi-family housing construction has fared better as high mortgage rates entice many potential home buyers to remain renters.
Our take
This should be expected, considering rising interest rates. Builders are hesitant about the market as the end of Q4 nears, but we’re not deterred by this news. We’re going out, doing our follow-ups, and checking in with our buyers and sellers. There’s a lot of activity in the market, and with only a month left in the year, we want to get creative in finding ways to close a deal. This is where the great agents can separate themselves from the good ones!
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New meaning to “market” value?
Source: Unsplash
ATTOM released its grocery store report, looking at appreciation and home value over a five-year period, focusing on homes near Trader Joe’s, Whole Foods, or Aldi. They found that home flippers enjoyed the highest five-year ROI for homes near Aldi stores (54% vs. 28% for Whole Foods and 25% for Trader Joe’s). Homes near Trader Joe’s and Whole Foods had the highest average values, and homes near Aldi experienced the biggest jump in appreciation.
Our take
When it comes to investing, it’s good to have all of the possible information in front of you. This shows us an angle to home valuations that many people probably wouldn’t consider or even know about! There are a lot of factors that affect a home’s value, and having a good grocery store nearby can definitely be one of those factors. We’ve never been to an Aldi before, but now we’re curious to know what they’re doing right!
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Schematics
The news that just missed the cut
Source: mansionglobal.com
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Check out Jay Leno's "ridiculous" Newport mansion
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How to keep your clients happy when things get messy
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These are America’s 10 kindest states
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Rent growth is slowing down, a lot
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5 stunning kitchen trends
Foundation Plans
Advice from James and David to win the day
We can't say it enough: one of the most important skills for new agents to master is the art of throwing an amazing open house. Even though virtual tours and online photo galleries are popular, nothing beats a well-executed open house to generate interest in your listing!
Here are three ways to ensure your next open house is successful:
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Arrive early. Always get there at least an hour early to freshen up the home. Pull back curtains, turn on lights, and remove any distracting clutter so the listing looks as fresh as possible.
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Go big on publicity. Marketing and signage are critical for having an effective open house. Place signs around town, update your socials, and knock on neighbors' doors to personally invite them to the open house. Even if they just stop by to look, you never know where that connection might lead in the future!
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Gather information and follow up. Politely insist that all visitors leave their contact information as they arrive. After the open house, follow up with each person with an email or text. Don't be salesy! Just thank them for attending and lay the foundation for an ongoing relationship.
Want more tips for having a successful open house? Check out this article.
Q&A
You ask, James and David answer!
Q: I’m currently on a small team that hardly has any market share and is growing at a very slow pace. I’ve been in real estate for 2 years and am considering moving to another team within the same brokerage that is very well-represented and established in my market. My thinking is that I’ll gain invaluable experience and also leverage their brand to get more listings. What are some things to consider or watch out for when considering transitioning to another team?
A: When looking for a new team, always think about what that team has to offer you. Will they provide leads or bring clients to you? Where do they see you thriving? What support system will you have within the team? Does their message and brand speak to you? Remember: joining a team isn’t just about the business you’ll receive – it’s about the overall relationship. You have to go into it with the right mentality because this is a marriage!
We’ll be back next week with another answer to a real reader question. Submit yours here!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That’s all for this edition of The Blueprint! Remember that your Q4 goals are still reachable, so spend some time this week mapping out your next steps to meet those numbers in December. Hit the streets, knock on doors, and follow-up with past clients, and we’re confident that you can finish the year out strong!
We’ll see you on Friday!
– James and David
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