End-of-year special coming Monday!
We know we haven't released a podcast in a couple weeks, but we've got a good reason why! It's because we have been gearing up for an end-of-year special with Jason Oppenheim from Selling Sunset, and we are so excited for you to hear it and see it (on YouTube).
We will be recording tomorrow at a special location, so be on the lookout for that on Monday!
– James and David
Zillow makes its 2023 predictions
Source: Unsplash
Zillow released its list of bold market predictions for 2023. Here they are:
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The Midwest region will attract a surge of first-time buyers since mortgage costs and rent prices are still low in those areas
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More people will buy homes with friends and family to further offset affordability concerns
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New construction will focus more on rental units, which indicates a strong vote of builder confidence
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Expect a surge in first-time landlords as rental prices outpace home prices, especially in regions where housing demand is higher
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The affordability crisis will stabilize and might improve slightly, but there won't be a complete reset in home prices and interest rates to pre-pandemic levels
Our take
As long as people are buying homes, we are happy, and you should be too! It’s always a good thing when more first-time homeowners come into the market, no matter what region. 2023 is going to be an interesting year, and we are definitely ready for it. We are preparing for the year and keeping predictions like this in mind, but it’s not shifting how we go about our day-to-day.
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Buyer relief on the horizon?
Source: Unsplash
Redfin Deputy Chief Economist Taylor Marr said, "We’re likely past peak inflation, past peak mortgage rates and past the bottom for mortgage purchase applications." He also said that homebuying demand is growing as mortgage rates start to decline.
Here are stats that reflect that trend:
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On Thursday, interest rates dipped to 6.29%, down from 7.29% the month before.
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Mortgage applications are up 4% from the same time last month
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Home price drops fell sharply to just 6% of active listings
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Available homes for sale posted its biggest YoY increase on record even as new listings fell by double digits, indicating homes lingered on the market over Thanksgiving week.
Our take
It’s great to see mortgage applications jump with the dip in interest rates. Buyers and sellers will move as long as there is some stabilization in the market, and we’ve had a little of that, which is reassuring. This time of the year can be slow, but it doesn’t mean that you can’t do any last-minute follow-ups or prepare for Q1 of next year.
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Top 5 markets for buyers and sellers
Source: Unsplash
The housing market is cooling, creating a more balanced market for buyers and sellers, according to a new Knock report. The housing market became more neutral in October, the first time since July 2020 that neither buyers nor sellers had an upper hand. In major metros, sellers still have an edge, while pandemic boomtowns in the Sun Belt remain favorable to buyers.
Here are the top 5 metros for buyers:
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Phoenix-Mesa-Chandler, AZ
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San Francisco-Oakland-Berkeley, CA
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Salt Lake City, UT
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Austin-Round Rock-Georgetown, TX
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Boise, ID
And here are the top 5 metros for sellers:
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Fayetteville, NC
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Winston-Salem, NC
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Columbia, SC
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Hartford-East Hartford-Middletown, CT
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Rochester, NY
Our take
We think we’re definitely in a buyer’s market, unless it’s a perfect house in a perfect location. As agents, this is the time for us to set realistic expectations with our sellers so their house doesn’t sit on the market for too long. If you are working with a buyer, especially in one of these markets, look at what the comps are selling for in the area, and help your client get the most affordable price possible.
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Schematics
The news that just missed the cut
Source: CNBC.com
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Do you live in one of the world’s most expensive cities?
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Opendoor had a major leadership shake-up this week
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If Eminem wrote his clients holidays card this season
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Turnover at the top for Keller Mortgage
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See inside Mark Wahlberg’s $79.5M Beverly Hills megamansion
Foundation Plans
Advice from James and David to win the day
We always tell agents to educate themselves and do their homework to have the most successful real estate career possible. But with all of the information out there, where should you start?
Here are three great places to learn more about real estate both locally and nationally:
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Your local MLS. Always start with your local MLS! It provides a daily update of homes that have come on the market, gone under contract, sold, expired, or otherwise come off the market. The historical sales details can help you identify year-over-year trends in sales prices, average days on market, and list-to-sale ratios. If you want to show your clients that you're the real estate expert in your region, learning everything you can about your local market is a must!
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National Association of Homebuilders. Many new agents aren't as familiar with new construction data as they are with resale properties, so the NAHB is a gold mine of information. NAHB.org provides monthly updates on permits pulled and housing starts numbers compared to previous months and year-over-year comparisons. They also provide details on inflation, monthly housing start trends, mortgage rate trends and how all of these affect buyer and seller sentiment.
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Showing Time. As agents, we might think of Showing Time as just a way to organize the home showing process, but it offers so much more than that! It also compiles marketing data that offers useful insight into demand and trends in buyer and seller interest. Their charts showing daily showing request numbers can help agents strategize future listing appointments and open houses.
Want more amazing real estate information sources? Check out this video.
Q&A
You ask, James and David answer!
Q: Any tips on how to overcome anxiety in your first couple years of being a real estate agent?
A: This job can be stressful, so just remind yourself that you aren’t alone. When you’re first starting out, be sure to make a plan, get a mentor, and be patient. The best way we get rid of anxiety is through action. We know that when we think too much, we start to believe those thoughts, but we remind ourselves, they are just that: thoughts. We make weekly, monthly, and quarterly goals, and we write these down. Writing our goals down helps us hold ourselves accountable and give us hard evidence of everything we are accomplishing!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That's all for Tuesday's edition of The Blueprint! Remember to stay tuned for more info about our end-of-year YouTube special with Selling Sunset's Jason Oppenheim, and in the meantime, you can catch up on any Rise Above the Ranks episodes you might have missed here → Apple | Spotify | YouTube
Have an amazing week, and we'll see you on Friday!
– James and David
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