How Gen Z is changing homeownership
Plus, top 8 reasons homes don’t sell
Setting concrete goals
We are now heading into the home stretch before the end of the year. It’s time to set some goals that you want to hit before the calendar turns to 2024.
But… before you do that, we urge you to think carefully about those goals. Some people set goals that are so incredibly big and require so much time that they actually don’t motivate them to go get listings, but to head back to bed and take a nap!
That’s why we’ve learned the importance of creating concrete, achievable goals.
You want more listing appointments? How many do you want? 10? 20? If you can set an exact number for the month, then you’ll be able to know exactly how far you have to go to reach that goal.
Let’s say you chose 10. How many doors do you need to knock to get there? 100? 200? 500? Set an exact number and you’ll know exactly how much work you’ll need to put in every day.
You get how this works. The clearer you make the goals, the clearer your plan for the rest of the year. Remember, your success in 2024 doesn’t begin on January 1. It begins now!
- James and David
U.S. homeowners see rise in home equity
Homeowners are in a better position today than they were earlier this year, according to CoreLogic's latest Homeowner Equity Insights report. Here are the key takeaways:
Nationally, home equity grew by $806 billion in Q2
Homeowners with mortgages saw their equity rise by an average of $13,900 between Q1 and Q2
The average homeowner has lost $8,300 compared to Q2 of 2022
Homeowners in the Northeast and Midwest saw the biggest equity gains, while those in Western states like Washington and Idaho saw the largest losses
More and more evidence keeps rolling in that homeowners are sitting on a hot commodity right now. Sure, the prices aren’t at the all-time highs of last year, but the expected housing price crash never came. We know it’s an uphill battle, and we know it’s going to be a process, but use this intel as part of your pitch to get homeowners off the fence and into the market.
39% of homeowners are willing to rent out their homes
To offset rising expenses, 39% of homeowners would consider renting part of their primary home. That’s according to Realtor.com’s latest survey of homeowner trends and preferences. Here’s what else they discovered:
Younger generations have the most experience and interest in renting
74% of Gen Z and 66% of Millennials have rented out part of their home or are considering doing it
50% of Northeastern homeowners and 42% of Western homeowners are open to renting, clearly due to the high costs of living in those areas
59.8% of respondents said they would consider renting out their home at some point in the future
These numbers definitely caught our attention. We have never seen such a high percentage of homeowners willing to take this step. It’s now something to consider when guiding clients to either buy or sell. We can now estimate the potential earning power a homeowner has by renting out one room or their whole house. That’s going to be a key selling/buying point you’ll want to communicate.
Top 10 U.S. metros where purchase-mortgage originations are on the rise
The total number of mortgages secured by residential property in the U.S. rose to 1.56 million in Q2 2023, a 21% quarterly increase and the biggest jump in two years. However, the total is still down 38% annually. That’s according to ATTOM’s Q2 2023 U.S. Residential Property Mortgage Origination Report. The turnaround resulted from increases in purchase, refinance, and home-equity lending.
Top 10 Metros with the Greatest Quarterly Increases:
Ann Arbor, MI
San Jose, CA
Sioux Falls, SD
Yes, a 38% drop from last year is a big number, but we’re still encouraged by this report, and the quarterly rise in mortgage originations. It’s going to take time for people to get used to the new normal in mortgage rates, but it’s important to realize that even in these tough times, people are doing deals. But prepare yourself: We agents will have to put in a little more work and have a little more patience than normal.
The news that just missed the cut
Fort Lauderdale: https://tinyurl.com/bdewx2at
Advice from James and David to win the day
If you’re fortunate to have a listing right now during crunch time, it’s frustrating to be stuck with one that just won’t sell. If your property isn’t gaining traction, one of these 8 missteps might be the cause:
The listing description is boring or unclear
The pictures are low-quality
There are too many showing restrictions or too few available slots.
The property lacks a “wow” factor
The property is poorly staged (too many personal pictures, distracting artwork, clutter, etc.).
Your price is too high or just outside a key pricing bracket
There’s an error in your MLS listing, the property may not be categorized correctly or could be missing key information.
You need to put in more follow-ups to light a fire under a potential buyer
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: Mortgage News Daily
As we enter the home stretch for this year, don’t let the enormity of everything you have to do as an agent overwhelm and paralyze you. Break down what you need to do into small manageable tasks, and then execute! Neither your plans nor your journey is going to be perfect. Just start and optimize as you go.
Thanks for reading, and we’ll see you Friday!