Winners of our giveaway!

First off, we want to give a HUGE thank you to everyone who entered our giveaway! We’ve been absolutely blown away by your enthusiasm, and it’s been incredible seeing so many of you join in. Thank you for tagging your friends, sharing stories, or simply taking part. This spirit is one of the things we truly love and value most about our Blueprint community!

Now, the moment we’ve all been waiting for… 

Drumroll, please…

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Our lucky winners are Melinda Nelson and Mari Hutchison! 

Keep an eye on your email inbox—we’ll be reaching out to you directly to claim your prize.

If you didn’t win on this go around, do not worry! We’ll have more exciting giveaways and surprises coming your way soon.

Thanks again for being part of this, and congratulations to our winners!

– James and David

Record-high home sale cancellations for this time of year

In January, 41,000 U.S. home-purchase agreements were canceled, accounting for 14.3% of all homes under contract during the month. According to Redfin, this marks a 13.4% increase from last year and the highest cancellation rate for this time of year since at least 2017. Here’s what else the listing service reports from January:

• Housing inventory is at its highest since 2020, while pending home sales hit a record low (excluding the pandemic’s start). With more choices and less competition, buyers are backing out during inspections, often holding out for a better option.

• Factors like tariffs, layoffs, and federal policy shifts are prompting many buyers to delay or cancel their moves.

• Mortgage rates remain high, averaging 6.96% during the month, with home prices up 4.1%. Though rates have slightly dipped, the combined impact of high costs and economic uncertainty is pushing some buyers to reconsider.

• Here are the markets with the highest share of canceled deals:

  • Atlanta, GA: 19.8%

  • Orlando, FL: 18.2%

  • Las Vegas, NV: 17.9%

  • Houston, TX: 17.8%

  • Jacksonville, FL: 17.8%

Our take

This Redfin report is both a treasure trove of info and a warning sign for the market. Some of the most interesting tidbits: the Bay Area has the lowest home-purchase cancellation rates with San Francisco at 4.1% and San Jose at 5.9%. Meanwhile, 37 of the 50 largest U.S. metros saw cancellation rates rise. The report also hints at a slowing market. As the late economist Ed Leamer once wrote, “Housing IS the business cycle.” While it’s too soon to make a definitive call, this is a trend worth watching very closely.

Congratulations, again, to followers Melinda Nelson and Mari Hutchison! Watch your email inbox. We’ll be reaching out to you directly to claim your prize.

If you didn’t win this time, don’t worry! We’ll be having more exciting giveaways and surprises coming soon. ✨ Thanks again to all those who participated and made this event such a success! We couldn’t have done it without you!

Rent-to-Own catching on with wealthy buyers

While Rent-to-Own is traditionally used by those struggling to save for a home, Realtor.com reports that affluent buyers are now using this option, applying part of their monthly rent toward a future down payment. Here’s what you need to know about this trend:

• Why luxe buyers are using this option: Although wealthy buyers can afford high-priced homes, they don’t want to pay the high mortgage rates. Rent-to-own lets them lock in a home's price, move in now, and delay closing until financing conditions improve.

• Rent-to-own agreements come in two types: 

  • Lease purchases include a lease and a contract requiring the buyer to purchase the home at a set price after the lease. 

  • Lease options work similarly but allow, rather than require, the buyer to buy.

• Why developers are for it: Developers love using Rent-to-Own because they move housing inventory in markets where new-home sales are slower than desired.

• Why sellers are for it: They love the guaranteed monthly income and the guaranteed sale if they use a lease-purchase agreement. Even if they use a lease-option agreement, the sale is highly likely if not guaranteed.

Our take

Rent-to-own deals offer significant advantages for affluent buyers. Beyond serving as a strong negotiating tool, these deals allow buyers of new homes to uncover construction defects that a standard home inspection might miss. New builds don’t always deliver on what they promise. Sometimes windows may be drafty, or air conditioning may fall short. The chance to live in the home before committing fully makes rent-to-own especially appealing, particularly for high-end buyers. We’re all for it!

Markets where home prices have dropped the most

While national home prices have risen by 2.6% year-over-year from January 2024 to January 2025, not every housing market is seeing the same trend. That’s according to the Zillow Home Value Index. 31 of the 300 largest metro area housing markets are seeing falling home prices on a year-over-year basis. 

Here are the markets where home prices are falling the most, according to ResiClub:

1. Punta Gorda, FL: -8.2%

2. Cape Coral-Fort Myers, FL: -6.7%

3. North Port-Sarasota-Bradenton, FL: -6.2%

4. Naples-Marco Island, FL: -5.2%

5. Panama City, FL: -3.6%

6. Austin-Round Rock-Georgetown, TX: -3.4%

7. Tampa-St. Petersburg-Clearwater, FL: -2.8%

8. Sebastian-Vero Beach, FL: -2.6%

9. Crestview-Fort Walton Beach-Destin, FL: -2.6%

10. Deltona-Daytona Beach-Ormond Beach, FL: -2.5%

Our take

The price declines in these markets aren’t surprising. To assess home price trends, we track active listings and months of supply. A sharp rise in listings, with homes staying on the market longer, typically signals weakening prices. Conversely, a steep drop in listings suggests a heating market. Over the past 30 months, areas where inventory has returned to pre-pandemic levels have generally seen slower price growth or outright declines, as is the case in these markets.

The news that just missed the cut

• Housing market in a “deep freeze,” says Moody’s Mark Zandi

• Here’s how rent can make or break your credit

• Large cities where rent is getting cheaper

• What agents need to know about rules vs laws

• Do this to overcome objections from sellers and buyers

Foundation Plans

Advice from James and David to win the day

Agents sometimes ask us a variation of this question, “What is the one thing that I need to do to be successful as an agent?” We always say there is no one thing. Instead, what you need to do is build a repertoire of skills. In today’s edition and the next, we will be covering a range of skills that agents need to develop to be successful. We think it’s particularly important that agents hone these skills in the current environment because we may soon hit a rough patch in the economy. 

Communication – This is the number one skill every agent needs to develop. Good communication separates not just good agents from bad ones, it separates good agents from great ones! No two clients are exactly alike. You have to adapt and personalize. Make sure you listen just as well as you speak. Ask questions and paraphrase their response to ensure they know you’re listening. 

Networking –  This is the main way to build your career. Attend conferences, networking events, and even social events that might not seem directly related to lead generation. Make it a priority to establish and maintain good relationships with stagers, home inspectors, handymen, real estate lawyers, mortgage lenders, etc. You never know where these conversations will lead.

Time management – It's too easy to get bogged down in admin tasks that prevent you from doing client outreach and networking! Focus on income-producing tasks and delegate other work to an office manager or virtual assistant. Also, create schedules for each day, week, and month. You should not wake up and wonder what you will be doing that day. The more you take control of your life, the more you’ll take control of your career.

As you can tell, we have a lot more to say on this subject. Rest assured, we’ll be sharing more. But, to get your bearings, start here and here.

Just in Case

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

“You’ve gotta keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life.” — Warren Buffett

Have a wonderful week, friends. We hope you crush it! We’ll see you back here on Friday!

– James and David