- The Blueprint
- Housing trend we haven't seen in 50 years!
Housing trend we haven't seen in 50 years!
Plus, home values hit new high
The millennial report in today’s newsletter is fascinating. It got us thinking about how our job as agents, before anything, is to be a wealth of information, especially for buyers who are buying a home for the first time. The easiest way to provide value is to be knowledgeable about the foundations of our business. When we can help our clients understand the basics of our industry, it makes our working relationship even that more harmonious and productive.
Right now, we have such an incredible opportunity to deliver value to an emerging class of home buyers. That's why it's vital that we all stay up on the latest news, so we can always remain a wealth of information. There are many ways to do that, but we know one surefire way... read this newsletter ;)
- James and David
Home values continue to climb
At the end of 2022, data from the Federal Reserve showed that home equity and value hit a new high despite slowed home price growth. The total value of owner-occupied homes reached a massive $41.9 trillion, and over the past year, home values have grown by $5.1 trillion.
Here are the report's main takeaways:
The value of residential real estate is well over double its value from 10 years ago.
Equity as a share of real estate value held steady at 70.5%, tying its highest share since 1984.
Even if home prices dip 10%, homeowners are still positioned to avoid a 2008-like housing crisis because of the higher equity in their homes.
Buying a home is the best investment a person can make, and this data proves it. Reach out to all of your potential buyers and share this information with them. This data once again supports our trust in the market, and we’re beyond excited for what this year will bring. Put your head down, turn off the noise, go door-knock, and get some leads.
Inside the 2023 millennial report
Real Estate Witch released its Millennial Home Buyer Report for 2023 and it showed that millennial buyers say the main obstacle to owning a home is high interest rates. 92% of millennials say high rates have affected their home-buying plans.
Here are some key takeaways:
62% of millennials plan to put down less than 20% on a home, a drop from 34% last year
63% plan to refinance their mortgage when rates go down.
30% admit they’re unsure about the mortgage process, while 6% say they’re not knowledgeable about home buying.
82% plan to find a knowledgeable real estate agent when they’re ready to buy a home.
We think is good news, because if interest rates are keeping millennials out of the market, that should change as inflation cools off. Focus on that 82% number. When they do enter the market, they will need a knowledgeable agent to guide them. We suggest doubling-down on social media and creating creative, educational videos that show your expertise. When the time comes, they just might come looking for you.
December saw record number of housing starts
In December, multi-family housing starts hit levels we haven't seen since 1973! There are currently 943,000 multi-family homes under construction, with construction delays being a major factor in this number.
Here are the main takeaways:
The number of single-family housing units under construction is shrinking, which means a lot of housing units will be delivered in 2023.
Starts have been down YoY for eight months in a row, and that streak will continue in early 2023.
The good news: an all-time record 1.712 million units are currently under construction.
Wow! If these homes get delivered, then it should absolutely help with affordability in the market. We’re constantly checking in with developers in our market, walking up to sites, and offering our advice. Check out the floor plans, and see where you can add value to help them get their houses sold. Then follow up and see if you can land the listing!
The news that just missed the cut
Source: @houseliftdesign via Instagram
Advice from James and David to win the day
We are always telling new agents to do their homework and show up to meetings and listing appointments prepared with numbers and knowledge of the local market. Our friends at Broke Agent Media put together an amazing list of metrics that we believe every agent should be keeping a close eye on.
Here are those three metrics:
Market trends. Get in the habit of checking the market data every single day. Setting aside just 15 minutes to review MLS hot sheets will give you insight into what's going on in your market and give you an in-depth understanding of property sales and listings.
Lead generation and conversion rates. This one is huge. As an agent, tracking where you're getting your leads and which leads are converting to sales is critical so you understand how to find the most clients. Whether you're a solo agent or part of a team, take time at least once a month to analyze your leads and conversions.
Client satisfaction and referrals. After working with a client, don’t be shy about asking them for feedback! You can also gauge client satisfaction by tracking the number of clients who return to you for future real estate needs or refer friends and family to you. Sometimes this can happen years down the road, which is why it’s critical to stay in touch with past clients.
Want to learn more about the key metrics you should track? Click to read the article.
You ask, James and David answer!
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
If you're in New York at Inman connect, come say hi to me (James) on Wednesday at 2:20 and 4:00pm, I'd love to meet you. Reply to this email and let's make it happen.
That's all for this edition of The Blueprint, see you Friday.
- James & David
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