Reaching younger buyers

“The medium is the message.” That was the famous saying from scholar Marshall McLuhan 60 years ago. It meant communication wasn’t just the words you spoke, but the method you chose to deliver those words.

Well, fast forward 60 years, we now have MANY, MANY methods of communication! Gone are the simpler days of e-mails and phone calls. There’s now texting, social media posts, podcasts, IG carousels, TikTok trends, and yes, even bi-weekly newsletters!

We bring this up because, in our second story below, we discuss the buying habits of Gen Z and Millenials. You’ll see that if you want to target this group, it’s not just the message you deliver, but how and where you deliver it. And they might not be looking where you think!

On that note, let’s get into this medium… our Tuesday edition of The Blueprint!

– James and David

Mortgage rate forecasts for 2025

ResiClub recently compiled 2025 mortgage rate forecasts from 14 different firms. On average, mortgage rates are projected to reach 6.34% by the tail end of 2025. Here is a breakdown of each firm’s prediction:

• Redfin: 6.80%

• Capital Economics: 6.75%

• Hunter Housing Economics: 6.60%

• CoreLogic: 6.50%

• Wells Fargo: 6.41%

• Mortgage Bankers Association: 6.40%

• Fannie Mae: 6.30%

• Moody’s: 6.30%

• Morgan Stanley: 6.25%

• BrightMLS: 6.25%

• Realtor.com: 6.20%

• NAHB: 6.12%

• Goldman Sachs: 6.10%

• NAR: 5.80%

Our take

As we’ve noted before, forecasting mortgage rates is notoriously difficult. Even so, forecast projections are a useful way to set baseline expectations and capture the change in sentiment among market participants. These recent projections mark a significant change from those published just before the Fed’s rate cut in September. The majority were expecting rates to slowly decline throughout next year and fall below the 6% threshold by the end of Q4. Now, most forecasters are anticipating mortgage rates to close 2025 at an average of 6.34%. Communicate this update with your clients, so they can be prepared for next year.

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Real estate habits of younger homebuyers

41% of Gen Z and millennials are using social media to learn about real estate, according to the 2024 RE/MAX Future of Real Estate Report. In particular, Facebook (25%) is the top social media platform they use to browse the property market, followed by Instagram (22%) and TikTok (20%). Here are the other eye-opening key takeaways about these younger buyers:

• 33% say finding an agent with expertise has become more important to them over the last year

• They say clear communication is a top priority when seeking an agent

• Family members are the No. 1 source of guidance they look to for help

• 57% say they want to be homeowners before they start a family

• Move-in ready homes are preferred over fixer-uppers

• Local amenities are their top priority feature

Our take

This is a genuinely interesting report from RE/MAX. We were surprised to learn that Facebook is the top social media platform Gen Z and millennials visit to browse the property market. We would have thought it was TikTok or Instagram. We weren’t surprised, though, that 57% say they want to be homeowners before they start a family. In fact, a lot of couples now want to buy a home BEFORE they get married. As agents, we need to be mindful of these trends. They can help us forge a stronger connection with this next generation of homeowners.

Markets where inventory is above pre-pandemic levels

Nationwide, the amount of active inventory in November (953,452) is still 16.6% below where it was in November 2019 (1,143,332). However, active listings are up 26.2% YOY, according to ResiClub. In fact, certain Sun Belt and Mountain West markets are seeing active listings above pre-pandemic levels, indicating that homebuyers have secured leverage in many parts of the country over the past year.

Here are the 10 states where inventory levels are now above pre-pandemic norms:

1. Arizona

2. Colorado

3. Florida

4. Idaho

5. Oklahoma

6. Oregon

7. Tennessee

8. Texas 

9. Utah

10. Washington

Our take

Agents should closely track inventory levels for a good reason. Typically, housing markets where active inventory has returned to pre-pandemic levels have seen slower home price growth, or even price declines, over the past two years. On the other hand, markets with active inventory still well below pre-pandemic levels have generally experienced stronger price growth during the same period. That’s precisely the pattern we’re seeing across various housing regions in the country.

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The news that just missed the cut

• Redfin’s predictions for 2025

• Americans are moving to the exurbs in droves

• Multi-generational home buying is on the rise

• The real estate brokerages winning at recruiting

• Sylvester Stallone just bought this Hamptons estate for $25M

Foundation Plans

Advice from James and David to win the day

As we continue in our prep for 2025 series, today we’d like to offer some tips on how to get creative with listing presentations. One of the methods we like using in our pitches is the case study method. It uses your past listings to demonstrate your process and to showcase your expertise, thoughtfulness, and ability as an agent. Here's how to use it:

Outline and detail your listing process – You probably already have a process for getting a home ready to list. Outline this process. Be detailed and thorough but don’t overwhelm your clients. The point is to explain to the clients what they’re getting when they hire you by demonstrating the thoughtfulness, care, and intentionality you bring to everything you do as an agent. 

Collect data and document the process – This is how you'll show prospective clients why they should choose you as their agent. Collect before-and-after photos of previous listings, client testimonials, and the list and sale prices of homes you've sold. Show them your results and the difference you made. 

Put it all together – After you've clearly outlined your listing process and compiled data, it's time to take all of this information and package it beautifully. This can be a simple flyer or brochure, or you can create a video to send to potential clients. The most important thing is to show potential clients evidence of your success as an agent and how you can do the same for them.

For more tips and strategies on listing presentations, use these resources.

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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