Our agents are following this "developing" trend
Plus, smart tips to gain listings
This industry is a numbers game
There’s nothing more important than your funnel in this business. The more listing meetings you have, the more business you will get. It’s that simple.
Two listing meetings a week is a little over a hundred a year. If you make fifty calls a day, we’re telling you that you'll make that goal of two listing meetings a week happen.
We set a target for this year, and we're going to hit $1.5 billion in sales. But trust us—there was a time when we could only dream of reaching such a number.
That’s why we’ve learned to take it day by day. We know that if we put in the work every single day, we will eventually drum up the business we want.
This business takes a lot of skill, energy, and dedication, but sometimes, it just takes time.
Now if you have a few extra minutes to spare, check out today’s edition of The Blueprint!
- James and David
Builders are offering deals on new homes
New construction may offer the best opportunities for would-be homebuyers. According to the NAHB, 31% of builders reduced home prices in February, while 57% offered a buyer incentive. These incentives range from mortgage-rate buydowns to closing costs to upgrades.
Here are the key takeaways:
Sales of newly built single-family homes in December 2022 were down 16.4% compared to December 2021.
New home sales increased by 2.3% in December 2022 compared with the previous month, due largely to builder incentives and lower mortgage rates.
Bring this info to your buyers!! Go out and find the new builds in your market, talk to the developers, and see what they are offering. Use this data to make amazing social media videos, and target people searching for homes in your area. This is such an unbelievable opportunity in this market, and we think everybody should consider doing this!
National trends don't tell the whole story
Agents in certain cities have their own unique perspectives on the market. In Cleveland, Austin, and San Francisco, agents are optimistic as their local markets stabilize or even take off.
Here are some snapshots from around the country:
Cleveland – Affordability is driving interest in Cleveland, and much like the rest of the country, inventory is at a minimum. Buyers are attracted to its lower price points and many amenities.
Austin – Prices are normalizing, though inventory and affordability are low. Consistent with national trends, more builders are offering buyer incentives such as closing cost credits or mortgage rate buydowns.
San Francisco – The Bay Area is experiencing an inventory shortage that is slowing sales. Despite this shortage, prices have dropped roughly 15-20% since June.
We love perspectives like this! Yes, macro trends do matter in our industry, but being a real estate agent is a hyper-local job. It’s a great reminder not to let fear take over when you read headlines about inflation and rising interest rates. It’s best to go outside, talk to your neighbors, attend events, and see what is actually happening in your community.
Number of million-dollar homes drops
The share of U.S. homes worth a million dollars or more fell to 7.6% in January, down from a high of 8.6% in June 2022. High mortgage rates have dampened homebuying demand, causing home prices to post their first annual decline in more than ten years.
Here are the cities with the greatest decline in homes worth >$1M:
San Francisco, CA (-6%)
Oakland, CA (-5.2%)
Seattle, WA (-3.4%)
New York, NY (-3%)
San Jose, CA (-2.5%)
Austin, TX (-1.2%)
Boise City, ID (-0.9%)
Los Angeles, CA (-0.8%)
Denver, CO (-0.7%)
Honolulu, HI (-0.6%)
This makes sense, but we don’t think it’s a huge deal. The data over a span of a year doesn’t really matter. If these homes were worth over $1M at one point, then there’s a good chance they will get back there. The housing market is cyclical, and the last few years weren’t normal. We know that home prices grow over time.
The news that just missed the cut
Advice from James and David to win the day
We all know that today's market is completely different than what we were seeing in 2020. So, our approach to generating leads and closing deals has to change as the market changes. Our friends at BAM and The Knowledge Brokers Podcast shared an amazing list of how agents can pivot to gain listings and help buyers, even when mortgage rates are 7%+.
Here are three strategies to gain listings in this market:
Take advantage of opportunities. Buyers can be skittish when mortgage rates are high, so this is the time to show them the advantage of buying! In some markets, high mortgage rates mean properties stay on the market longer and the asking price might be negotiable. This is why we always say to come prepared with numbers!
Work with the right lenders. This is crucial for making home purchases as affordable as possible in this market. Invest time in finding lenders who can provide real opportunities for your buyers and save them a good amount of money.
Use your time wisely. Use the time between appointments and showings to reach out to a client about a property you just saw. Keep the conversations going all day by using the minutes between appointments to make some phone calls.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That’s it for this Friday’s Blueprint!
Take some time this weekend to start a list of potential clients to call next week. Remember, this industry is a numbers game. If you make the calls and get the listing meetings, we know you’ll reach your goals for 2022.
Have a great weekend, and we’ll see you on Tuesday!
- James and David