We’re talking consistency

The market is shifting and there’s no denying that. We’ve been telling our team to go back to the basics and be consistent. That means be consistent with your follow-ups, door-knocking, cold calling, etc. Just because the market slows down, it doesn’t mean your day-to-day business has to slow down too!

We know the deals are out there, they're just harder to find. People are still going to buy homes, regardless of what the market looks like. We want to encourage you to keep going and don’t let up. We believe that, ultimately, hard work always pays off!

– James and David

Builders continue losing confidence in single-family homes

In October, homebuilder confidence in single-family homes dropped to its second-lowest level since 2012. According to Realtor.com, with interest rates passing 7%, homebuilders are becoming increasingly concerned about their ability to sell new construction single-family homes.

• Homebuilder sentiment in the single-family home market fell to 38 in October (any number below 50 is considered negative)

• October marks the 10th consecutive month of weakening confidence

• Multi-family home construction is up 28.6% YoY in response to changing demand

Our take

What the market needs most right now is more inventory. Whether builders are adding more single-family properties or multi-family units, as long as supply is increasing, that’s good for the market and for future buyers. We hope to see this multi-family push continue into 2023. It creates great opportunities for all of us agents.

The market stumbled in September

September was a rocky month for both buyers and sellers due to rising mortgage rates and persistently high housing costs. Here are notable stats from Redfin:

• 22.4% of listings took a price reduction

• Total sale volume dropped 25% YoY, the biggest drop since spring 2020

• New listings decreased 22% YoY, also the biggest drop since spring 2020

• About 60,000 contracts were canceled (roughly one in five purchase agreements), the highest cancelation rate since March 2020

Our take

High mortgage rates and the stock market volatility scared off a lot of buyers last month. We keep reminding our clients that mortgage rates are only going to go up from here, and if they want to buy within the next year, they shouldn’t wait. Right now, buyers have little competition, a lot of negotiating power, and the best rates they’ll get for months. So get out there and help them find a great deal!

Milestone for urban vs. suburban markets

Last month, for the first time since Redfin started recording the metric in 2018, it became more expensive to buy a square foot in the suburbs than in an urban neighborhood. As permanent remote work and more affordable housing continue to draw people away from major metro areas, home prices in urban areas have continued to drop. Here are the stats from September:

• The average price-per-square-foot in suburban areas was $206 compared to $205 in urban areas

• In suburban areas, prices are up 9.5% YoY, compared to just 3.5% in urban areas

• The average suburban home sold for $385,000, while the average urban home (which is typically smaller) went for just $310,000

Our take

This trend is a great reminder to make sure the areas you’re farming are the right areas for today’s buyers. If you’re focused on door-knocking in the city, it might be time to move towards the suburbs. That’s where the demand is growing, and that’s where prices are holding steady. Be willing to change your strategy to follow the market!

Schematics

The news that just missed the cut

• Why everyone’s buzzing about this $14.8M Hawaiian mansion

• Forget millennials, Baby Boomers are the better buyers

• How to invest in real estate during the recession

• This tiny Texas hotel made $500,000 this year

• Watch out for these 3 deal-enders

• 9 renovation projects every seller should consider

• David’s luxury market interview with Sacramento agent Jason Walter

Foundation Plans

Advice from James and David to win the day

The slower the market gets, the more important it becomes to stand out as an agent. Here are three ways you can prove to your market that you deserve their business:

1. Manage your time. Time-blocking is one of the best ways to make sure you’re hitting your basic best practices. Block time daily and weekly for follow-ups, lead generation, market research, networking, and client care.

2. Offer above and beyond service. Make sure you’re doing everything you can to out-serve every agent in your area. Communicate well and often, show up when you say you will, show gratitude, offer great value, and always act ethically. That’s how you impress your clients!

3. Hustle! That means knowing your market better than any other agent around, sitting every open house you can, making your calls, door-knocking consistently, and always looking for opportunities. If you don’t do it, someone else will!

For more great tips on standing out in today’s market, check out this video.

The Blueprint Spotlight

Want to connect with Alissa and Katy, hosts of the Hustle Humbly podcast? Follow them on Instagram @hustlehumblypodcast

Just in Case

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

Looking for a little inspiration, motivation, or encouragement? Check out Tuesday’s Rise Above the Ranks podcast! We broke down everything you need to know to build a business-boosting social media plan that generates leads— even what you sleep.

Give it a listen here (Apple | Spotify | YouTube) and reply back if you have questions!

Have a great weekend!

-James and David

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