Do’s and Don’ts

On our podcast, “Rise Above the Ranks”, we often talk about things that every real estate agent should do. Well, this time around, we discussed all the big don’ts! 

Having been in this business for quite a while, we’ve seen a lot of mistakes agents make. Heck, we might’ve even made a couple of them ourselves! But we want to do our part to make sure none of you out there, whether you’re a new agent or a seasoned agent, fall into those same traps. 

In today’s Foundation Plans below, we highlight a few of the biggest mistakes we’ve seen. And in our next edition, we’ll cover some more. But if you want to hear them all right now, click here!

We truly think you’ll enjoy it, so we hope you give it a watch/listen!

– James and David

Luxury market boomed in 2024

Luxury home sales saw a 5.2% increase in transactions of homes priced at $1 million or more during the first half of 2024. There was also a notable 14.2% surge in median luxury home prices. By contrast, the broader housing market experienced a 12.9% decline in overall sales, with median home prices rising by just 5%, according to a recent update from Housingwire. Here’s what else the housing news service reports:

• While elevated mortgage rates have frustrated the general housing market, the luxury segment has been insulated as wealthy buyers are less likely to need a mortgage.

• 50% of all luxury purchases in the first quarter of 2024 were made in cash

• Generational wealth transfers are expected to rise over the next 10 years

  • $31 trillion will be transferred by 1.2 million people over the next 10 years

  • Most of that wealth will go to older Millennials and younger members of Gen X

Our take

Keep this caveat in mind: HousingWire’s analysis is based on a report recently released by The Agency, so make of that what you will. Nonetheless, the key insights align with our own observations. Comparing the luxury housing market to the broader market reveals stark contrasts. It’s like a tale of two cities. While both segments are interconnected, their dynamics differ significantly. Affordability challenges that plague the general housing market are largely absent in the luxury segment, where all cash deals account for at least half of all sales. Looking ahead, wealth transfers will be a critical factor to monitor over the next decade, particularly the extent to which Millennials and Gen X inherit significant assets. We’ll be keeping a watchful eye on that

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Surge in mortgage refinance demand

Applications to refinance home loans jumped 27% week over week and were 42% higher than the same time last year, driven by homeowners seeking to capitalize on lower rates. Despite the increase, refinancing volumes remain low compared to the peak period when rates were below 4%. Here are the other key takeaways from CNBC’s report:

• The average rate for 30-year fixed-rate mortgages fell to 6.67%, marking the third consecutive week of decline.

• Mortgage applications for home purchases fell 4% week over week but remained 4% higher than the same period last year.

• Mortgage rates rose by 10 basis points early this week, potentially erasing last week’s gains. The release of the Consumer Price Index (CPI) this Wednesday could lead to further fluctuations as the market anticipates the Federal Reserve's next decision on interest rate cuts.

• Headline inflation in November rose 2.7% year-over-year and 0.3% compared to October.

• Core inflation, which excludes food and energy costs, rose by 0.3% month-over-month and 3.3% year-over-year

Our take

Wednesday’s CPI report, which aligned with market expectations, increased the odds of a third Fed rate cut. While shelter costs remain elevated with a 0.3% month-over-month rise, this marks a slowdown from the previous month’s 0.4% increase. Housing accounted for 45% of overall inflation. Overall, the report offers a glimmer of hope for the real estate industry, which is eager for relief through lower mortgage rates. Keep an eye on December 17th and 18th. That’s when the Fed meets again.

Metros where home sales are set to soar

Realtor.com predicts a modest 1.5% increase in home sales nationwide in 2025, but its Top Housing Markets are expected to see impressive year-over-year growth ranging from 13.5% to 27.1%. These high-performing markets share several key traits: they are predominantly located in the South and West, have experienced significant recent sales growth, offer ample inventory often fueled by new construction, and attract a younger population. Additionally, these markets tend to be more affordable and continue to benefit from the rise of flexible work arrangements.

Here are the top 10 markets forecast to see the biggest YOY increases in existing home sales in 2025:

1. Colorado Springs, CO: +27.1%

2. Miami, FL: +24%

3. Virginia Beach, VA: +23.4%

4. Richmond, VA: +21.6%

5. McAllen, TX: +19.8%

6. El Paso, TX: +19.3%

7. Little Rock, AR: +18.6%

8. Greensboro, NC: +17.3%

9. Washington, DC: +17%

10. Harrisburg, PA: +16.8%

Our take

There are several factors fueling this trend. Homebuyers now have more choices, with both new and existing homes available on the market. Housing inventory is rebounding nationwide, with November marking the highest level of homes for sale since December 2019. New construction plays a significant role in this recovery, as eight of the top 10 metros have seen year-over-year growth in single-family home permits issued. Nationally, new-construction listings account for 17.3% of all Realtor.com listings, with all but two of the top 10 markets (Miami and Phoenix) meeting or exceeding this benchmark.

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The news that just missed the cut

• What not to do at your brokerage holiday party

• How to track housing data to know what’s coming next

• Shopping malls are being converted into apartments

• Homebuying optimism at the highest level in 3 years

• After 13 years on the market, Michael Jordan sells his Chicago mansion

Foundation Plans

Advice from James and David to win the day

We’ve just released our latest “Rise Above the Ranks” episode and we love it. We think it will really help so many of you in your prep for next year. We dive into the most common reasons why agents don’t succeed in the real estate industry. In fact, we cover eight reasons that often lead to failure. In today’s edition, we talk about the first four. We will then conclude the series by covering the final four reasons in our next edition. Let’s jump in. 

1. Lack of commitment – There is a saying we often use to communicate this idea. You can’t be half-pregnant. You either are or aren’t. The same is true with real estate. Being an agent is extremely competitive. You have to dedicate yourself to this craft. Live and breathe real estate. You’ve gotta be all in. It’s too easy to quit when the going gets tough. 

2. Lack of strategic thinking –  Be a wealth of information, but be strategic in how you communicate it. Listen to your clients and answer the questions they are asking. Be responsive to them. Not everything you know needs to be shared with them. Your goal is not to be Google. Your goal is to customize information for your clients. Know everything you can about real estate – all the key terms, trends, price fluctuations, comps, etc. – but tailor it to their specific needs and wants. Don’t bullshit, be real. People can tell the difference. 

3. Fear of failure – For us, success is failure turned inside out. We’re not telling you to intentionally make mistakes; instead, don’t let the fear of making mistakes debilitate you from taking action. For example, we often have agents ask us many questions about door-knocking. After a few weeks have passed, they’ll ask us more questions about door-knocking. In the meantime, they’ve not door-knocked even one door! Their fear of rejection and making mistakes completely prevents them from taking action. In this business, not everyone will like you or want your services. Many will reject you. But many will also appreciate your efforts, and you’ll become a success because of it. Don’t let the fear and pain of rejection prevent you from achieving your dreams. The rejections and the mistakes are part of the process.  

4. Having no good role models –  Surround yourself with successful and inspiring people. Success breeds success. You don’t have to be like everybody. Some people’s style won’t be true to who you are. Find mentors that you align with and that speak to you. Learn from them and adapt their strategies to your business. Without being self-doubtful and unconfident, remain humble and teachable. We encourage you to be like Kobe Bryant in this regard. He was constantly learning and improving his game. Be aware of your limitations, but don’t be limited by them. Learn what you have to do to overcome those limitations to achieve the goals you want. Study, learn, and apply the lessons of those who have come before you and have succeeded in this game.   

As you can tell, we have a lot to say. We’ll cover the final four reasons in the next edition. In the meantime, we encourage you to listen and watch the episode. We truly hope it helps and inspires you, friends!

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Just in Case

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

"Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution."  – Attributed to Aristotle

Thanks for reading, friends! We’ll see you back here on Tuesday!

– James and David