Down the stretch we come!

We hope you had a great holiday! As we enter December, we are here to help give you a little extra push as we head down the home stretch of the year.

Today, we want to share a truly excellent conversation we had on our podcast “Rise Above the Ranks.” We were joined by Ricky Carruth, a top-notch agent, entrepreneur, and the mind behind Zero to Diamond, a coaching program helping agents reach new heights in their business. 

To give you a small taste of our wide-ranging discussion, we highlighted a few of the many great takeaways from our discussion down below in today’s Foundation Plans. You can check out the episode here. We found it inspiring, and we think you will too!

All that and more in today’s edition of The Blueprint!

– James and David

Huge jump in pending home sales

U.S. pending home sales rose 12.1% year-over-year during the four weeks ending November 24th. According to Redfin, that’s the biggest increase since May 2021. Here are the other key data points:

• Mortgage purchase applications are up 12% week over week

• Home tours dropped to their lowest level in more than two months, but remain up 7% YOY

• New listings have risen 10.6% YOY, marking the largest increase since April

Our take

Pending home sales (or contract signings) are an important indicator given that they are the first formal step in a home sale, when two sides reach an agreement on price and terms. These sales typically predict existing-home sales by one to two months. Even though the Fed has cut interest rates in its past two meetings, the fall market has been hit by rising mortgage rates and economic uncertainty tied to the presidential election. But now that the election is over, that uncertainty could be waning. Redfin notes that while we did see a big YOY boost in home sales in the two weeks after the election, that was in comparison to last year, when Thanksgiving fell inside that period, which is typically slow.

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Spike in homebuyer demand for mortgages

A drop in mortgage rates last week spurred homebuyers into action, boosting total mortgage demand by 6.3% week-over-week, according to the Mortgage Bankers Association's seasonally adjusted index via CNBC.  Here’s what else the network reports:

• Mortgage applications for home purchases rose 12% week-over-week and were up 52% YOY

• The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped slightly from 6.90% to 6.86%

• Refinance applications fell 3% week-over-week but were up 119% YOY

Our take

Mortgage rates may be poised for a slight decline in the coming weeks, but the reduction is unlikely to make a significant impact on December’s home sales. Historically, the period between Thanksgiving and Christmas is a quieter time for homebuyers, so we shouldn't anticipate much activity. That said, the year’s end often brings opportunities for buyers. The market typically sees increased inventory, slower sales, and more price reductions as sellers aim to finalize deals before the new year. For those hoping to make a new home their holiday gift, the expanding inventory might hold some pleasant surprises.

“Zoomtowns” with the highest fully remote workers

The share of fully remote workers fell to 13.8% in 2023, down from 15.2% in 2022 and 17.9% in 2021, according to ResiClub’s analysis of U.S. census data. Although the current rate is still much higher than the 5.7% we saw in 2019, this decline reflects a gradual return from the pandemic peak. 

Among the 40 largest housing markets analyzed by ResiClub, these metros have the highest and lowest level of fully remote workers:

Our take

Remote work is unlikely to return to 2019 levels, even as employers gain more leverage and the push for in-person work grows. While some employees may be called back to the office, a full reversal doesn’t seem to be in the cards. Many companies now recognize the need to offer work-from-home or hybrid options to remain competitive. This trend has boosted housing markets in deep exurban areas near major metros, especially where new construction is limited. However, if a sharper-than-expected pullback in remote work occurs, some housing markets would be vulnerable to price declines, as seen in "Zoomtowns" like Austin.

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The news that just missed the cut

• Zillow’s housing market predictions for 2025

• America’s biggest apartment owner is jumping into modular homes 

• Gen X now represents 24% of recent homebuyers

• Buyers are gravitating toward smaller homes

• How to brand yourself as a luxury agent

Foundation Plans

Advice from James and David to win the day

As we told you up top, we just recorded a fantastic conversation with Ricky Carruth on our podcast “Rise Above the Ranks”. Ricky is a top real estate agent, entrepreneur, and founder of Zero to Diamond, a powerhouse coaching program that helps agents succeed with authenticity, hard work, and consistency. His story and his success in our industry are truly inspiring. We honestly didn’t even need notes for the interview. The conversation just flowed!

While our wide-ranging conversation had many highlights, we wanted to share three takeaways here, just to give you a taste of what we discuss in the full interview:

1. Define the vision for your career – Ricky was recently in Las Vegas for a real estate conference as a keynote speaker. As part of his talk, he asked the audience how many wanted to be real estate agents for the long haul. Hardly anyone raised their hands. Ricky says this proves that many agents don’t have a clear vision of what they want to do in our industry. Consequently, they can’t identify the core values of their business, and what separates them from the pack. This can leave them wandering and floundering. Don’t let that be you. Create a clear vision and let that be your guide.

2. Play the long game when prospecting – Ricky makes an excellent point that the goal of prospecting isn’t to engage in any high-pressure sales tactic, but to get your prospect to open up to you. What do they want? What are their real estate goals? When you know that, you can help them achieve those goals, whether it’s a few months or a few years down the line. Don’t have a one-and-done attitude. Play the long game. Stay in touch with your prospect over the long haul, and you’ll have repeat business in the process. 

3. Create conversations – We loved what Ricky had to say here. Real estate is based on talking to people directly. With all the lead-gen tools out there, most agents are trying to avoid that essential step. But that’s a mistake. As Ricky correctly says, the only thing between agents and their goals is thousands of one-on-one real estate conversations with people in their market. So when evaluating any lead-gen tool or activity, ask yourself this one key question: how many conversations is it creating? 

Again, this is just a small taste of our wide-ranging chat. Ricky shares both his rise, dramatic fall, and stellar resurgence in the industry. We also discuss our differing views on the “Clear Cooperation Rule.” As we say, it’s a fantastic conversation. Watch it here and let us know what you think!

To learn more about Estate Media, visit their website.

Just in Case

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

Success in life comes from first taking ownership of your life and choices. Take action to become who you want to be. Nobody else can do it for you.

Have a great week friends and we’ll see you here on Friday!

– James and David