Living proof

Redfin just reported that the top home sale in the U.S. last month was our $110 million listing in Beverly Hills. (Scroll down to Story 3 for the details.)

We’re not sharing this to brag — but to show you that even in a tough market, big deals still happen. We’re living proof. But success like this doesn’t happen by luck. It takes the right mindset, strategy, and tools.

That’s why, with our partners at Estate Media, we’ve launched our Agent Growth Program — a full-service content and strategy program designed to help you grow your online presence and business.

We made early access available exclusively to our readers. 

When we started this newsletter, we never imagined launching something like this. But here we are. Unexpected success happens when you take action.

– James and David

Pending home sales tick up

Pending sales increased 1.8% compared with last month and 1.1% on a year-over-year basis, according to the latest data from the National Association of Realtors. Here’s what else NAR reports.

• On a month-over-month basis, all four regions saw pending sales increases: 

  • West: +6% 

  • Northeast:+2.1% 

  • South:+1.0% 

  • Midwest:+0.3%

• On an annual basis, pending home sales were mixed:

  • Midwest: +2.6%

  • South: +2%

  • Northeast: -0.5%

  • West: -1.2%

• 19.1% of listings in May saw cuts to their asking prices

• New-home sales in the South crashed in May, pulling overall sales down by 13.6% on a monthly basis.

• Existing-home sales fell by 0.7% year over year in May

Our take

We’re not saying to pop open the champagne, but this report was a much-needed shot in the arm. After a string of lackluster reports, the market is showing a glimmer of forward momentum. Pending home sales – which mark the point when a buyer and seller have agreed on the price and terms – offer a leading indicator of activity, typically preceding existing-home sales by one to two months. Although existing home sales were down last month on an annual basis, the growing inventory and rising number of listings with price cuts point to improving conditions. Patient buyers are poised to gain options and purchasing power in the coming months.

Investors are still looking to buy in 2025

79% of single-family investors say they are 'somewhat likely' or 'very likely' to buy at least one property in the next 12 months. According to ResiClubs’ recent survey of investors and landlords, that’s up from 76% in Q4 2024 and 61% in Q2 2024. Here are the other takeaways from the report.

• 32% of investors plan to sell at least one property in the next year, slightly down from 33% in Q4 and 37% in Q2

• 57% believe mortgage rates will stay above 6.5% over the next 12 months

• 59% of landlords say rising insurance premiums have reduced cash flow—42% moderately, 17% significantly

• 30% of investors say property taxes were their largest expense increase in the past year, followed by 29% who cited insurance

• In the West, 19% of landlords report that insurance premiums have risen more than 50% over the past five years

• 83% of landlords plan to raise rents in the next 12 months, though only 10% expect increases greater than 7%

Our take

Investor appetite for single-family homes remains steady, even as higher insurance premiums and property taxes chip away at returns. A growing share still plans to buy in the year ahead, signaling long-term confidence in the asset class despite short-term cost pressures. Most landlords plan moderate rent increases, likely a move to offset rising expenses without pricing out tenants. As an agent, this is your cue: tailor your marketing to individual investors. We're not just talking about institutional buyers, but small-scale owners – those with a single rental – who are still looking to buy in today’s market and have the means to make a move.

The most expensive home sales in May

The highest-priced home sale in the U.S. last month was our Beverly Hills listing that sold for $110 million, according to Redfin. Of the ten most expensive sales in May, four closed at $55 million or more, and all exceeded $30 million. Every transaction took place in either Southern California, Manhattan, or Florida. Even though insurance costs in areas like Palm Beach and Boca Raton are high due to climate risk, four of the top ten sales occurred in coastal Florida, underscoring again how demand in these markets hasn’t waned one bit among ultra-luxe buyers.

These are the top 10 most expensive U.S. home sales of May:

1. 630 Nimes Rd., Los Angeles, CA 90077: Sold for $110 million

2. 391 N. Carolwood Dr., Los Angeles, CA 90077: Sold for $57.3 million

3. 1140 S. Ocean Blvd., Manalapan, FL 33462: Sold for $55 million

4. 12032 E. End, North Palm Beach, FL 33408: Sold for $55 million

5. 1519 N. Ocean Way, Palm Beach, FL 33480: Sold for $48.5 million

6. 973 5th Ave., New York, NY 10075: Sold for $46 million

7. 1 Pelican Crest Dr., Newport Coast, CA 92657: Sold for $42 million

8. 25 Bond St., Penthouse West, New York, NY 10012: Sold for $34.5 million

9. 63 Monarch Bay Dr., Dana Point, CA 92629: Sold for $34 million

10. 1788 Royal Palm Way, Boca Raton, FL 33432: Sold for $31.5 million

Our take

As we noted in our last edition, strength in the existing home sales market is concentrated in the upper end. Luxury demand, in particular, is holding steady, even in high-risk, high-cost markets. Despite rising climate-related insurance premiums, four of May’s ten most expensive home sales were in coastal Florida. For ultra-high-net-worth buyers, location and lifestyle continue to outweigh cost and risk.

The news that just missed the cut

• James explains why your mental game matters so much as an agent

• Freddie & Fannie were ordered to consider crypto assets in loan risk evals 

• How to stay relevant as an agent without using social media

• Nepo-buyers are America’s new class of homeowners

• Drake is selling his Beverly Hills manse for $79 million now

Foundation Plans

Advice from James and David to win the day

In today’s edition, we conclude our series on stale listings. In parts one through four, we shared proactive strategies to help your listing stand out from day one and avoid going stale altogether. We also offered tips for breathing new life into a home that’s been sitting idle, without lowering the price. Now, in our final installment, we tackle the issue many agents dread: having the price-reduction conversation. When it’s time to adjust the list price, we recommend a clear three-step process:

Gather your supporting documentation – Facelifting alone may not be enough to get your listing noticed again. Revisit your competitive market analysis (CMA) and any market comps, and determine whether a price adjustment is justified. You might also consider hiring a professional appraiser to provide third-party data that supports your recommendation.

Readjust seller expectations – If you determine a price adjustment is the only option, prepare to have an honest but thoughtful conversation with your client. You'll need to leverage your active listening skills, empathy, and confidence to alleviate their concerns and assure them that a price adjustment is the right move. Support your recommendation with ample data, the latest CMA, and showcase the efforts you’ve taken to promote the home before and throughout its days on market.

Change the price – Once your seller is on board, make the pricing adjustment and relist strategically. Also, consider adding a lease option to expand visibility. Listing the home as “for sale or lease” on rental platforms could attract a broader audience — and you never know, a renter might just become a buyer.

There is no one-size-fits-all strategy to revive a stale listing. You have to stay open and experimental. Be willing to try new things. The key is to get your listing in the best shape possible, price it competitively, and get it in front of as many potential buyers as possible. 

We’ll revisit this topic throughout the year as market conditions evolve. In the meantime, we’d love your feedback: Have our tips been helpful? Anything we’ve missed? Let us know — we’re always listening.

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. We’ll see you next Tuesday, friends!

– James and David