Our take on the Fed’s huge announcement

May 05, 2023

The ultimate social media advice

We recently had our very knowledgeable colleague Matt Lionetti on our podcast “Rise Above the Ranks” and we asked him to tell us the ultimate tip he’d give for agents in how they handle their social media. His answer was so simple, and so perfect.

He said you just have to be yourself.

We know for some new agents starting out, and even some longtime agents, that can be a tough nut to crack. Yes, we know who we are as people, but who do we want to be as agents?

Matt reminded us that the answer should always be one and the same. Be who you are! If you’re funny, be funny. If you’re bubbly, be bubbly. If you’re analytical, be analytical. There is no one way to make a connection with people. You’re not going to be everyone’s cup of tea, but you can find your niche.

In this world of artificial intelligence and online conversation, we are looking for an authentic connection. There is nothing more authentic than being your wonderful, unique self!

On that note, we hope you enjoy this latest edition of The Blueprint..

– James and David

Are home prices bottoming out?

Source: Unsplash

Home prices appear to be reaching their floor. That’s according to the latest data published Wednesday by Black Knight, Inc., the leading mortgage lending data provider.

Here are the key numbers to know:

93 of the nation’s 100 largest housing markets saw a month-over-month home price increase
New listings are 30% lower than pre-pandemic norms for this time of year
Nearly half of homes on the market are selling within two weeks.

Our take

This is great news. The fact that just seven major housing markets saw a home price decline in March shows how fast the housing market is stabilizing. It also shows how much prices are being propped up by the low amount of listings. Think about just five short months ago, when prices were falling in 92 of the nation’s 100 largest housing markets. While there is no universal consensus, Zillow and CoreLogic believe this marks the bottom for home prices.

Fed makes two important announcements

Source: CNBC

At the conclusion of its May meeting, the Fed did two important things:

It raised the federal funds rate by 25 basis points, as expected.
It indicated that it WILL NOT increase rates in future meetings throughout 2023 unless necessary

Our take

It is very encouraging to hear the Fed signal that it will not increase rates unless need be. Right now, inflation is declining and credit markets (e.g. the market for mortgages) are slowing down because of the already-elevated interest rates and recent bank failures. The Fed doesn’t want to weaken the credit markets any further. This is very good evidence that mortgage rates are going to fall throughout 2023 and might even reach somewhere around 5.6% by the end of the year.

Top 10 metros where people are moving

The number of people moving to other states fell in Q1, but high housing costs are still pushing buyers to move to affordable metros, primarily in the Sun Belt. That’s according to Redfin’s latest report on relocation patterns.

Here are the top 10 cities where movers are heading:

Miami, FL
Phoenix, AZ
Las Vegas, NV
Tampa, FL
Orlando, FL
Sacramento, CA
Cape Coral, FL
North Port-Sarasota, FL
Dallas, TX
Houston, TX

Our take

We always want to get ahead of where people are moving next. That’s why it’s smart to familiarize yourself with the best options for your clients. Study where people are going, and where they’re coming from. Research why they’re leaving, and what they’re hoping to find in a new city. For example, if you have listings in Miami, start marketing them to potential buyers in New York now. Guide them in the relocation process. Agents are already capitalizing on this. You should too.

Schematics

This is the most expensive home in the country
How Zillow and Redfin are jumping on the AI craze
Why 2023 won't see a 2008-like foreclosure wave
Billionaire plans to turn Jeffrey Epstein’s islands into a luxury resort
Guess who rented the most expensive listing in Brooklyn?

Foundation Plans

Advice from James and David to win the day

This is a story we like to tell all new agents. Michael Jordan joined the NBA in 1984 but didn’t win his first championship until 1991. Through those seven years, he won a lot of individual accolades, but he never even got to the Finals. He only won when he surrounded himself with a reliable crew that complemented his skills and supported him.

Like basketball, real estate isn’t a one-person show. It’s a team effort. Even if you’re individually great, you’ll never take your business to the next level until you surround yourself with the best people possible.

This isn’t a full list, but here are some key players that every agent needs:

Lenders: Finance is a huge part of our business. No deal is going to get done unless your clients can finance their home. Having a go-to set of lenders allows you to know your client is in good hands. It also allows you to provide the level of service you want to your clients.

Title Company/Closing Attorney: Transactions are the most volatile during closing. By having a trusted attorney or title company, you can prevent issues and ensure the closing process goes smoothly. You may not deal with a lot of attorneys in your market, especially if you’re in the Central US or West Coast, but on the East Coast most closings are taken care of by attorneys.

Dependable “Handymen” or Service Workers: This is often overlooked, but you need to know a reliable set of handymen or service workers of all stripes (A/C, cleaning, gardens, etc.). When a buyer gets a new home, they may need repair work done. You can be their guide and go-to resource, and set yourself apart in the process.

As we said, our list merely highlights crew members we often see missing from an agent’s repertoire. To learn who else you should add, read this article and listen to this episode.