Sorry about the double send this morning, we forgot to drink our coffee! Enjoy the full edition.

Staying teachable

One of the best parts of this newsletter isn’t just sharing our insights with you. It’s also the opportunity to learn something new along the way.

That’s especially true today, as you’ll see in our second story. More than ever, Americans are placing greater value on homeownership. Some of the reasons behind this shift are expected, but others might surprise you. We won’t spoil it — scroll down and see for yourself — but one thing is clear: the real estate landscape is always evolving.

That’s why staying adaptable and open to new insights is key. The market changes, consumer priorities shift, and the best way to stay ahead is to keep learning.

Let’s dive in.

– James and David

Home prices are still rising

Nationwide, home prices rose 3% year over year, while pending sales fell the most since 2023. And, according to Redfin, the typical U.S. home that sold last month was on the market for 54 days — the longest for any February since 2020. Here are the other major takeaways from Redfin’s latest update.

• Nationwide, active listings rose 10.7% year over year and 1.3% month over month on a seasonally adjusted basis, hitting the highest level since June 2020

• 3 of the 5 metro areas where home prices are rising fastest, year-over-year, were all in the Midwest

  • Milwaukee – +20%

  • Detroit – +12.5%

  • Nassau County, NY – +11.7%

  • San Jose, CA – +11.1%

  • Cleveland – +10%

• Pending sales saw the largest increases in Los Angeles (+6%), Anaheim, CA (+5.2%), and Columbus, OH (+0.6%). 

• Active listings saw the largest increases in Oakland (+37.5%), Denver (+29.8%), and Anaheim (+26.9%), while the biggest declines occurred in Detroit (-6.7%), Newark (-6.4%), and Milwaukee (-3.7%).

Our take

Home prices continue to rise despite declining homebuying demand due to tight housing inventory in many parts of the country, which fuels competition and drives up prices. While supply is increasing in some regions, many Midwest markets are still experiencing inventory declines — three of the five metros with the fastest-falling housing supply are in the Midwest. Nevertheless, despite rising prices, the Midwest remains the most affordable homebuying region in the country. Detroit, for example, has the lowest median sale price among major metros, at $180,000.

Americans value homes more than ever

44% of American consumers say their home has become more important to them in recent years, while only 10% say it has become less important. That’s according to Fannie Mae’s latest National Housing Survey analysis of homeowners, mortgage borrowers, and renters. Here are their key findings.

• Top reasons why consumers value their homes more:

  • 63% of consumers say their home’s location has made it more valuable to them

  • 59% cite the sense of security their home provides as a key reason for its growing importance.

  • 49% say their ability to spend leisure time at home along with their ability to customize their home

• Home features that are growing in demand:

  • Outdoor living space (69%)

  • An extra room for hobbies (61%)

  • A yard for gardening (60%)

  • Renters, in particular, are willing to pay more for these upgrades

• 46% of renters and 42% of homeowners say they would pay more for a home with enough space to accommodate extended family, as multigenerational living becomes a reality for more Americans.

Our take

Consumers are valuing their homes more than ever, and understanding their motivations will help position you as the go-to agent in your market. This shift in sentiment is reshaping and influencing buying decisions. To stay ahead, align your marketing with these changing priorities. For example, buyers are prioritizing security, location, and flexible space — make sure your listings highlight these features. Also, more buyers are seeking homes that accommodate extended families, making flexible layouts a key selling point. Take a deep dive into this report and apply its insights to strengthen your strategy as an agent.

Metros with the highest net domestic migration

In 2024, Dallas, TX led major U.S. metros in net domestic in-migration, according to ResiClub’s analysis of recent Census Bureau data. This metric tracks the difference between people moving in and out of a market but excludes births, deaths, and international migration. As a result, net domestic migration is not the same as total population change. Some markets with negative net domestic migration may still see slight population growth when accounting for births and international migration.

Here are the metros that saw the highest levels of net domestic in-migration in 2024.

1. Dallas-Fort Worth-Arlington, TX –  24,550

2. Charlotte-Concord-Gastonia, NC-SC – 24,377

3. Houston-Pasadena-The Woodlands, TX – 21,408

4. Phoenix-Mesa-Chandler, AZ – 21,364

5. Jacksonville, FL – 19,954

6. Lakeland-Winter Haven, FL – 19,745

7. San Antonio-New Braunfels, TX – 18,981

8. Raleigh-Cary, NC – 17,505

9. Ocala, FL – 16,105

10. North Port-Bradenton-Sarasota, FL – 15,049

Our take

Paying attention to net domestic migration is important because it influences regional housing markets. Rapid increases can drive housing demand surges (e.g., Austin during the pandemic housing boom), while sharp declines can trigger demand slowdowns. Here’s the key overarching takeaway: Although Sun Belt states like Texas and Florida still see positive migration, levels have dropped from their pandemic peak. They’re now closer to pre-2019 trends.

The news that just missed the cut

• One of Idaho’s most influential families pivots to luxury real estate

• How to follow up with unresponsive clients without being pushy

• AI boom could spark a Texas land rush — and raise demand for homes

• Expect lower mortgage rates to energize home buyers and sellers, says Zillow

• Lead generation ideas to use this year

Foundation Plans

Advice from James and David to win the day

As we noted last week, 81% of would-be buyers say that down payment and closing costs are “significant” obstacles to owning a home. One of the ways agents can help buyers is to persuade sellers to pay all or some portion of the closing costs. It’s a negotiation skill every agent needs to have. Today, in Part Two of our series on how agents can help buyers navigate current market conditions, we’d like to offer you some tips to help give your buyers an edge and some relief.

Craft a strong offer –  Coming in at or near the asking price shows good faith and strengthens your request for closing cost assistance. Clearly state the amount of closing cost contribution you're seeking from the seller in the offer. Be clear, concise, and confident.

Package your offer in an appealing way – Explain why you think the seller should contribute to the closing cost, and why your offer makes sense. For example, present your offer as an alternative to a lower sales price. The seller might see it as a wash financially, but it keeps the appraised value higher. Also, show them how your offer will lead to a fast closing. While closing costs are your goal, be open to other concessions. Maybe it's a lower earnest money deposit or a faster closing date that will do the trick.

Work with a lender who offers lower closing costs – This strengthens your case for the seller covering the remaining amount. Sellers are often more open to granting seller concessions if the buyer’s demands aren’t exorbitant.

To learn more about closing costs and how to negotiate, start here, here, and here.

Just in Case

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

“Intensity is the price of excellence.” – Warren Buffett

Excellence and success aren’t accidental, friends. They require intense focus, unwavering commitment, and sustained effort over time. But if you put in the work, success compounds, and the results can be extraordinary.

– James and David