Million Dollar Listing

Last night was the first time in 8 years we weren't on the season premiere of Million Dollar Listing Los Angeles. Congrats to our good friends Josh, Josh, & Tracy on an amazing first episode.

We are so grateful for everything that show gave us, and we can't wait for what's in store next. We don't have any updates for you all right now, but when we do, we promise you'll be the first to know. In the meantime, enjoy today's Blueprint! Only a few more left until we wrap up for the holidays!

November sees record delisting rates

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Home delistings hit a record high in mid-November, according to a new Redfin report. A record 2% of U.S. homes for sale were delisted each week on average during the 12 weeks ending November 20th. The highest delisting rates came in pricey West Coast metros and pandemic boomtowns in the Sun Belt.

Two main reasons behind this trend:

  • Sellers are pulling their homes off the market because they aren't receiving offers or are receiving offers below their minimum asking price

  • Homebuyer demand falling sharply since January 2022 due to rising interest rates and high home prices

Our take

We’ve noticed this, too. We think it’s more a result of the holidays and time of year. However, we know some sellers refuse to accept that the market has shifted. This is why we always set realistic expectations early with our sellers, so they’re prepared when we get into periods like this one. This is a good opportunity to set a plan to re-list homes in the new year, with a new marketing plan to excite your clients.

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Underwater mortgages climbing

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Black Knight’s latest Mortgage Monitor Report shows 8% of homes mortgaged in 2022 are underwater. This comes after four consecutive months of declining prices, and housing affordability nearing a 35-year low due to high inflation and mortgage rates.

Despite these numbers, Black Knight doesn't forecast a surge of foreclosures like we saw in 2008. Here's why:

  • Today's lending standards are much stricter and go further to ensure buyers are well-qualified for their loan amounts

  • Pandemic mortgage payment forbearance programs helped homeowners concerned with making their mortgage payments, so YoY foreclosure numbers remain steady

  • Due to rising home values, 91% of homeowners who are behind on their mortgages have enough equity in their homes to sell instead of going into foreclosure

Our take

This is what we have been saying all along – this isn’t 2008. It looks like foreclosures aren’t going to be a problem in 2023, and that’s a good thing! Thankfully, it seems like everyone learned their lesson from 2008. Of course, it’s not good that some homes are underwater, but 8% in totality isn’t all that much. There are going to be a lot of opportunities next year for agents to make a name for themselves. It won’t be easy, but going back to the basics in a healthy market is exactly what we want to happen.

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Top 10 metros for first-time buyers

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Zillow released its winter/spring 2023 list of the best markets for first-time home buyers. The list used four metrics to rank markets across the country: mortgage affordability, rent affordability, the inventory-to-buyer ratio, and the share of listings with a price cut.

Here are the top 10 metros for first-time buyers:

  1. Wichita, KS

  2. Toledo, OH

  3. Syracuse, NY

  4. Akron, OH

  5. Cleveland, OH

  6. Tulsa, OK

  7. Detroit, MI

  8. Pittsburgh, PA

  9. St Louis, MO

  10. Little Rock, AR

Our take

Affordability is going to be something that is talked about a lot until inflation is under control and mortgage rates stop rising. Next year is going to be all about buyers and sellers in equilibrium, so there are going to be a lot of opportunities for agents to stand out and make a name for themselves. We look forward to seeing which markets (maybe some from above, maybe not) end up becoming the go-to for first-time home buyers.

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The news that just missed the cut

Source: Unsplash

  • This is your high-profile clients’ top priority

  • How payday might change for agents and brokers

  • Check out the most popular design trends by decade

  • City leaders push back against Airbnb and VRBO investors

  • HousingWire acquires Altos Research

Foundation Plans

Advice from James and David to win the day

2023 is just around the corner, and it's important for agents to start setting their goals for the new year now. We always develop a quarterly business plan and a long-term plan for the whole year. Clearly spelling out exactly what you want to accomplish in the coming year and the actionable steps you can take to get there is the best way to make sure you have your most successful year yet!

If you want to create a business plan that you can easily follow, take these steps:

  1. Create a vision. It's hard to work toward a goal for your real estate career if you don't have a vision for it. Think big picture here, and get specific! All of us want to make more money, but try to dig deeper than that. Think about what contributions you want to make to your community and what kind of legacy you want to leave. Asking these deeper questions will help shape your bigger career trajectory.

  2. Create SMART goals. Once you've developed a broader vision for your business, it's time to create SMART goals, which are goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. Here are two examples: a non-SMART goal is to make a business plan for 2023. A strong SMART goal would be to set three specific short-term and long-term goals for 2023 by December 31st.

  3. Create accountability. Once you have set your SMART goals, tell your friends and colleagues about them! They don’t have to be in real estate, but make sure you choose accountability partners who have also set goals for themselves and will hold you accountable. It's much easier to stick to a goal when someone checks in on our progress.

Want more tips for creating your career game plan for 2023? Check out this article.

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!

Have a great weekend, and we'll see you on Tuesday!

– James and David

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