Top 10 cities where buying beats renting
Plus, three essential tips for real estate success
Good news on inflation
Let’s go! The latest inflation numbers showed that, compared to last year, inflation rose by 4.9%, less than the 5% everyone was expecting.
For the first time in two years (but what seems like forever), inflation is below 5%. We still have a ways to go, but we’re definitely headed in the right direction.
This kind of market is one of the most unique we’ve ever faced. We’ll continue to do our best to help you make sense of it. With that, let’s get into today’s edition of The Blueprint!
- James and David
Down payments break 3-year streak
The amount home buyers are offering as down payments fell for the first time in three years. That’s according to a new report from Realtor.com.
The report revealed two striking facts:
Homebuyers are putting less money down now than during the pandemic peak of Q2 2022
Even though homebuyers are putting less money down now, it’s still higher than what they were putting down prior to the pandemic
The markets with the largest down payment declines were:
Idaho (-2.7 ppt)
Arizona (-1.5 ppt)
Nevada (-1.3 ppt)
Utah (-1.0 ppt)
Nebraska (-0.9 ppt)
In many desirable markets, such as Las Vegas, your buyers can now offer competitive bids without putting a lot in as a down payment. That’s huge! That wasn’t true even just three short quarters ago. Things are changing so fast right now, and what is true in one market isn’t true in another one. The market is alive and moving. We all have to stay on top of it.
Home-builder sales spike
Home-builders have been offering massive mortgage rate buydowns to get priced-out buyers off the sidelines. By paying the lenders themselves, builders have reduced the initial mortgage rate buyers pay from, say, 6.5% to 5.5%. The latest research from John Burns Consulting shows this has been an enormous success.
As of the end of March:
Sales of newly constructed single-family homes are up 9.6% nationwide
Builder cancellations have dropped from 25% in November to 9%
This shows how important it is to build relationships with the builders in your market. They are offering massive incentives right now. But the incentives won’t last. In the better-performing housing markets, builders are already testing the waters to see how much they can increase their asking price. So capitalize while you can. Your buyers will thank you!
Top 10 metros where buying beats renting
With the lowest home price-to-rent ratios, it is better to buy rather than rent a home in 18 of the 50 most populous metros. That’s according to an analysis of new research from Home Bay.
They also found that the South is the most affordable region, with half of the 18 best cities for buying vs. renting.
The top 10 metros for buying rather than renting are:
Pittsburgh, PA (12 - price-to-rent ratio)
New Orleans, LA (12)
Chicago, IL (12)
Cleveland, OH (12)
Memphis, TN (13)
Miami, FL (13)
Detroit, MI (14)
Oklahoma City, OK (14)
St. Louis, MO (14)
Tampa, FL (14)
The resilience of the housing market takes our breath away sometimes. Even with the total amount of homes in the US down 40% from 2019, there are 18 metros where it is better to buy rather than rent. That is an amazing statistic to keep with you and share. This is the kind of surprising and relevant data you should share with buyers and sellers in your local market.
The news that just missed the cut
Drake wants $88 million for a mansion he bought just last year
The priciest zip code in New York City
25-year-old Youtuber Mr. Beast buys entire neighborhood
This First Lady’s childhood home just listed for $55 Million
NAR membership dues will increase in 2024
Advice from James and David to win the day
We know there is A TON of real estate advice out there, and it can get overwhelming. Today, we want to give you three tips that we think are absolutely essential for success in this business.
It’s not who you know, it’s who you GET TO know: When we moved to America, we literally didn't know anyone. We had to start from scratch. Our book of business was empty. But we are currently living through an extraordinary time. The tools available to you to reach potential clients are amazing and powerful. Learn and use them!
Authenticity is attractive: While some social media tools are artificial, you’ve still got to be natural. Don’t be fake. People can sense that. Putting yourself out in the world can be scary, though, so don’t hesitate to hire a coach to help you get comfortable and hone your self-presentation. If you’re comfortable with you, so will everyone else!
Consistency leads to Contracts: Rome wasn’t built in a day and neither will your business. Make your calls, update your database, send your follow-up emails, and stay up to date on the market. We can’t control what happens in the market, but we can control how much work we put in. The more consistent your effort, the more consistently you’ll see success.
This is just the tip of the iceberg. For more, listen to our colleague Jimmy. You’ll be raring to go, just as we are.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That’s a wrap on this edition of The Blueprint!
Remember that real estate is all about building long-term relationships and connections. So go out there and show the world who you are. Make that one extra call and knock on that extra door. That’s how you build a successful career in real estate!
Thanks for reading, and we’ll see you back here on Tuesday!- James and David