Help during this shifting market

We want to help you navigate this shifting market. This is an opportunity for agents to separate themselves and really serve their clients. We have the tools to help you win business.

If you haven’t already downloaded our free guide— The Essential Real Estate Toolkit—you can do so by referring just one friend or colleague to The Blueprint! Hit the share button below, send your custom referral link to someone who could use the tips and info we deliver, and once they subscribe, you’ll receive your own copy of this 30+ page guide packed full of game-changing strategies and scripts.

We promise this is information you can use. On that note, on with today’s Blueprint!

– James and David

Reality check about falling home prices

Source: Unsplash

Home price growth isn’t just slowing down, it’s slowing down at a rapid rate. This is due to mortgage rate increases and income growth not keeping pace with home price growth. Here are some key takeaways from the recent CoreLogic S&P Case-Shiller Index report from August:

  • Home price growth decelerated for the fifth month in a row

  • Price growth dropped to 13% YoY growth, down from a 15.6% YoY in July

  • The three cities with the strongest YoY price growth are Tampa (31.8%), Miami (28.6%), and Charlotte (21.3%)

  • The biggest drops happened in Phoenix (-16.2%) and San Francisco (-15.7%)

Our take

Everyone is afraid the housing market is going to crash like it did in 2008, and some people appear to be searching for proof that it’s happening again. This data shows that home price growth is slowing, but home prices are still going up (in some markets), just at a much lower rate, especially compared to the unsustainable growth we saw over the past two years. Buyers are hesitating due to high interest rates and low inventory, and sellers are less motivated to move since they have a great rate. But us agents know that people are still making deals. We just have to work a little harder with our sellers to set realistic expectations, and work harder to find our buyers the right homes.

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Rental relief

Source: Unsplash

In September, rental prices dropped nationwide month to month for the first time this year, falling 2.48%. It's the first time year-over-year changes dipped into the single digits since September 2021, and the lowest year-over-year increase since October 2021.

Here are top 5 metros where rent decreased the most last month:

  1. Cincinnati, OH (-6.8%)

  2. Columbus, OH (-5.7%)

  3. Los Angeles, CA (-3.6%)

  4. San Antonio, TX (-3.3%)

  5. San Francisco-Oakland, CA (-2.8%)

Our take

We expect this trend to continue as the market normalizes. It's not a bad thing at all. Not only is this a slow time for the market in general, there’s a huge wave of multi-family properties just about to come on the market. What does this mean for agents? Potentially prepare for a wave of new buyers. This group of renters is finally catching the break they need to start really saving towards their down payments.

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The NAR’s mortgage rate prediction

Source: Unsplash

Lawrence Yun, the Chief Economist of the NAR, suggested that mortgage rates could go as high as 8.5%. Across the board, over the past month, lenders are staying competitive to attract clients and it's emerging to be an opportunity for agents.

For example, during the week of October 18th, Citi was offering 30-year fixed mortgage rates at 7%, while Bank of America and Chase were offering a rate of 5.625%.

Our take

We see this as a massive opportunity to help buyers navigate the mortgage market. We encourage you to be a wealth of information in this area. Tell your buyers to apply with multiple lenders— both big banks and small, local lenders— to make sure they’re getting the best deal. Once they’ve found the lowest rate, help them understand their options to bring down that rate even further. The easier and more affordable you make the homebuying process, the more clients you can help and the better you can set yourself apart! Even if that transaction doesn't go through, you are building a potential referral client down the road.

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The news that just missed the cut

Source: Realtor

Foundation Plans

Advice from James and David to win the day

One of the first big decisions you have to make as a new agent is whether you’ll join a real estate team or work solo. Byrone Lazine of Broke Agent Media shares how to figure out which is the best option for you and your local market:

  1. Find out who’s running your market. Use tools like RealTrends Rankings and Zillow’s Agent Finder to look up the top performers in your area. Note which agents are solo, and which are on teams.

  2. Research every team and agent on your list. Look for client reviews, watch their videos, and check out their website and social presence. Watch for trends, like better reviews for the solo agents, or more reach and resources from the teams.

  3. Start interviewing your favorites. Based on performance and your research, narrow your list down to the 3-4 best singles and teams in your area. Make a point to interview each solo agent and team so you can get a feel for which option is a better fit for you.

For a deep dive on researching local brokerages and finding the right infrastructure for your business, check out this article.

Just in Case

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

Source: Rocket Mortgage

Today we’ll leave you with this timely reminder:

The good habits you create today will become the success you enjoy tomorrow.

Where do you want to be in 3 months, 6 months, or a year from now? Start building the habits that will get you there today!

Have a great weekend!

– James and David

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