- The Blueprint
- Posts
- Check out these eye-popping home inventory numbers
Check out these eye-popping home inventory numbers
Plus, how to join today’s free live webinar
Rinku Mathew
June 20, 2023
Free Live Webinar TODAY
We’re doing our free live webinar today. It starts at 10 a.m. Pacific/1 p.m. Eastern. We’re going to discuss our current take on the real estate industry and share some of the tips and tricks we’ve learned through the years. Sign up here!
- James and David
Amount of homes for sale drops
Source: Unsplash
There are 39% fewer homes for sale now than there were five years ago in June 2018, according to Redfin’s latest market update. Here’s what else Redfin reports:
Active listings of homes for sale are down -6% YoY
New listings of homes down -23% YoY
Pending sales down -27% YoY
Median asking price up 0.3% YoY
36% of homes sold above final list price
Touring activity is up 20% from the start of the year
Our take
We all know that we’re facing an inventory problem right now, but even we were taken aback by how much we’re down. 39% – that’s a lot! Unfortunately, that’s not going to change anytime soon. Thankfully, buyer demand for homes is still high. Buyers will need to get creative and aggressive with financing. As their agent, make sure you’re connecting with lenders at least once a week to capitalize on the special financing programs they’re now offering.
    |
Builder confidence reached highest level since last year
Source: Unsplash
Home builder confidence increased for the sixth straight month, reaching the highest level since July 2022, according to the National Association of Home Builders’ latest report on development activity. Builders are becoming so confident that they’re reducing their concessions.
25% of builders reduced home prices to bolster sales in June, down from 36% in November 2022.
The average price reduction was 7% in June, down from 8% in December 2022.
56% of builders offered incentives to buyers in June, down from 62% in December 2022
Our take
Since last year we’ve been saying that the best deals homebuyers can get now are from homebuilders. They’re offering concessions of every kind – from rate buydowns to price reductions – but, as this report shows, they’re starting to offer fewer concessions now. We believe that they will continue to offer concessions throughout this year and even into the start of 2024 but at a lower rate. So push your clients to take advantage of them while they last.
| |
Top 10 U.S. counties most affected by the current market
Source: Data USA
Counties in the West and other more upscale locales are feeling the biggest impact of the market. That’s according to ATTOM’s latest analysis of Q1 housing data. Their list is based on the largest declines in home values, the largest increases in foreclosure activity, and the largest number of mortgages underwater.
Top 10 U.S. counties most negatively affected by the current housing market:
Spokane County, WA
Cowlitz County, WA
Dona Ana County, NM
Kaufman County, TX
Washington County, PA
Rutherford County, TX
Jackson County, OR
Humboldt County, CA
District of Columbia County, DC
Gaston County, NC
Our take
This report is such an important reminder that there is no single “housing market.” Different markets are going through their own unique dynamics right now. Markets in the South and the Sun Belt are doing exceptionally well, while markets in the West are struggling. Even we're feeling it in our own area. Deal volume is slower than normal. While we should all know what’s going on in the macro market, we need to make sure the advice we give our clients is pertinent to the local market.
| |
Schematics
The news that just missed the cut
Source: Unsplash
Check out the real estate CRM built for WINNERS. Visit Boomtown and use promo code BLUEPRINT to get a whopping $750 in FREE digital advertising!
This is the most expensive listing in Tennessee history
How buyer agents can communicate their value
What to do if NAR and the brokerages lose in court
How realtors and real estate agents get paid
Foundation Plans
Advice from James and David to win the day
In the latest episode of our podcast Rise Above the Ranks, we discuss some of the mistakes we’ve made through the years, and what we learned from them. We go into some fun details on the podcast, but here are our three big takeaways:
Don’t make things up if you don’t know - Our business is built on trust. There is no quicker way of losing that trust than by pretending to know something that you don’t. If a client asks you something you don’t know, just say you don’t know and that you will follow up afterward.
Write everything down - Conversations aren’t enough. For example, if your client decides not to do a final walk-through against your advice, don’t just acquiesce and leave it at that. Make sure you have it written down somewhere as an email, text, or what have you. These kinds of decisions can have consequences. Make sure you protect yourself.
Don’t let fear paralyze you - There are so many unexpected occurrences in our business that mistakes are bound to happen. Don’t worry about that! It is all part of the job. When a mistake happens, just own it, learn from it, and move on. The real mistake would be to beat yourself up over it!
We cover a lot more in the episode, so please give it a watch, give it a like, and spread the word about it.
Q+A
You ask, James and David answer!
Q: How do sellers find the right agent for selling their property? What are some major red flags that should cause potential clients to run?
A: A big red flag is an agent who overpromises. If they’re telling you they’ll sell your place for waaay over market value, they’re just trying to get your listing. To find a good agent, do these four things.
1. Research local agents online
2. When you’ve found a potential agent, check out their website and social media to see how active they are
3. Look up their track record to see how many sales they’ve completed recently and at what price points
4. Get referrals from your friends and family
We’ll be back next week with another answer to a real reader question. Submit yours here!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
“The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and starting on the first one.” - Mark Twain
Thanks for reading, and we’ll see you Friday!
