Good December numbers

The December numbers are in for both new home and existing home sales. There is a lot to unpack below, and we’ll give you our take on what it might mean for the market moving forward.

We also discuss a subject that has definitely been in the news lately: the issue of insurance non-renewal rates. This is a subject we will be keeping a close eye on, not just because of what’s been happening in Los Angeles, but because this is a major issue having a profound impact on several areas of the country.

Finally, we are gearing up for our masterclass on the podcast space, and why we think it can be so valuable to agents. If you want a sneak peek at what we’ll be discussing, scroll down to today’s Foundation Plans. 

Again, you can take part by joining our incredible new program Estate Elite. If you want to get a sneak peek at being a member too, we are offering a FREE 14-day trial where you can experience all the many benefits that membership has to offer.

And now, on with today’s Blueprint!

– James and David

New home sales beat expectations

Sales of new single-family homes increased more than expected in December, rising 3.6% month-over-month, according to the Commerce Department. November home sales also beat expectations (674,000 units sold vs 664,000 estimated). Here are the other key takeaways:

• An estimated 683,000 new homes sold in 2024, up 2.5% from 2023. 

• Single-family housing starts and building permits hit a 10-month high in December

• Sales of previously-owned houses rose to the highest level since February.

• New homes now make up 30% of homes on the market for sale

• The inventory of new homes in December was 494,000 units, the highest level since December 2007. Of those units, 118,000 units have been completed while 268,000 units are still under construction.

Our take

As you can see, new home sales ended the year strong, due to limited existing inventory and strong demand. However, the growing share of new-home inventory could make builders hesitant to start new projects. Even so, current new-home sales data highlights the benefits of exploring the new-construction market, which offers more choices, mortgage rate relief through buy-downs, and brand-new, move-in-ready homes with lower monthly payments compared to existing homes.

Existing-home sales rose in December

Existing-home sales rose 2.2% in December to a seasonally adjusted annual rate of 4.24 million, the strongest rate since February 2024 (4.38 million). That’s according to NAR’s latest market update. Here’s what else they report:

• The median existing-home price rose 6.0% YOY in December 2024 to $404,400, marking 18 straight months of growth and the largest increase (+6.5%) since October 2022.

• Despite a strong fourth-quarter rebound, annual existing-home sales fell to a nearly 30-year low of 4.06 million, while the median price hit a record $407,500 in 2024

• Unsold home inventory fell 13.5% in December to 1.15 million, equal to a 3.3-month supply at the current sales pace.

Our take

Despite the December bounce, 2024 was a disappointing year for home sales, with an annual total of 4.06 million, down from 4.09 million in 2023. This was the weakest performance we’ve seen since 1996. While December's uptick is promising, its strength will be tested in the coming months with the current elevated mortgage rates. However, mortgage rates were already climbing higher in October and November, right before these homes went under contract. This means it’s possible that we’ve seen the bottom in existing home sales and we’ll see improvement from here.

Markets with the highest insurance non-renewal rates

Not only are insurance and reinsurance rates going up, but insurance non-renewal rates are going up too. Increasing non-renewal rates will threaten mortgage markets and real estate property values, according to the recently released U.S. Senate Budget Committee report on, what it calls, the “insurance crisis.” 

Analyzing this report, ResiClub has determined the following counties had the highest insurance non-renewal rates in the country.

1. Glades County, FL (16.2%)

2. Dare County, NC (12.9%)

3. Washington County, NC (12.2%)

4. Dukes County, MA (11.6%)

5. Greene County, NC (11.4%)

6. Dixie County, FL (9.6%)

7. Franklin County, FL (9.5%)

8. Hyde County, NC (9.5%)

9. Chowan County, NC (9.3%)

10. Highlands County, FL (9.1%)

Our take

The Senate Budget Committee highlights a clear link between rising insurance premiums and increased non-renewal rates, as insurers respond to higher risks by raising costs or pulling coverage. Coastal markets are hit hardest, with Florida accounting for 9 of the 15 U.S. counties with the highest premium increases from 2020 to 2023, while wildfires in Los Angeles present similar challenges on the West Coast. In the coming months, we’ll be exploring the state of the home insurance market in greater depth, but for now, we want you to be aware of this angle of the problem.

The news that just missed the cut

• The 10 most expensive celebrity deals in 2024

• MLS or private listing networks: What do sellers want? 

• Where prices are headed in the top luxury markets around the world

• The revolt against property taxes

• Gwyneth Paltrow just sold her Brentwood estate for $22M

Foundation Plans

Advice from James and David to win the day

As you know, we’ve started a comprehensive training, coaching, and mentorship program called Estate Elite with our friends Glennda Baker, Josh Flagg, and Tracy Tutor. As part of this program, nearly every week, one of us is hosting and teaching a LIVE masterclass where you get direct coaching from us. In today’s edition, we wanted to tell you about the masterclasses happening this week. 

Tuesday, January 28th @ 3pm-4pm ET: Building Multiple Streams of Communication and Revenue with Tracy Tutor 

Tracy will cover these important topics:

• Social Media as a Powerful Business Tool

• Building Multiple Communication Channels

• Why Multiple Channels Matter

• Turning Social Media into Revenue Streams

• Generating Revenue Through Content

• Leveraging Social Media for Lead Generation

• Maintaining Authenticity While Monetizing

Thursday, January 30th @ 3pm-4pm ET: Mastering the Podcast Space with James Harris and David Parnes

We will cover everything you need to know about the podcast space:

• Why Podcasts are a Game-Changer for Luxury Realtors

• Defining Your Podcast Strategy

• Content Creation for Real Estate Podcasts

• Podcast Equipment and Setup for Realtors

• Marketing Your Real Estate Podcast

• Monetizing Your Podcast

• The Long-Term Impact of Podcasting on Personal Branding 

When we started in the business, we truly wished we had these opportunities to get one-on-one advice from successful industry leaders. As we said, sessions like this are happening nearly every week. We honestly don’t think there is a comparable program out there.

If you want to give it a test run, we encourage you to take advantage of the FREE 14-day trial to experience everything our exclusive membership has to offer. Join now and take action to make 2025 your breakthrough year in luxury real estate.

Learn from the Best in Luxury Real Estate!

Elevate your real estate career with Estate Elite! Along with top agents Josh Flagg, Tracy Tutor, and Glennda Baker, get direct coaching from us, James Harris and David Parnes. Gain VIP access to exclusive training courses, live interactive workshops, and a powerful network. Transform your skills in personal branding, marketing, negotiations and much more.

We are offering a FREE 14-day trial where new members of Estate Elite can try out the membership before paying.

Here’s what you’ll gain during your trial:

• Exclusive Access: Join twice-weekly live workshops and Q&A sessions, led by industry-leading top producers.

• Proven Strategies: Build a powerful personal brand that attracts high-net-worth clients.

• Actionable Tools: Learn how to streamline operations, justify your value, and confidently negotiate at the highest levels.

• Industry Insights: Stay ahead of 2025 market trends and evolving conditions.

Gain insider knowledge, industry tools, and direct access to leaders in the field—all in one destination. Don’t just sell luxury—live it, breathe it, and master it with Estate Elite. Try it out. You won’t be disappointed. We really believe that it will elevate your real estate game to the next level.

FREE 14-day trial!

Just in Case

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

Choose how you spend your time wisely, friends. It, not fate or any other factor, is how you determine what your life becomes.

Join us in any of our masterclasses this week, and we’ll see you back here on Friday!

– James and David