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- Huge turn in online real estate battle
Huge turn in online real estate battle
Plus, where home shoppers are really struggling
Rinku Mathew
October 20, 2023
‘Tis (almost) the season
The holiday season is around the corner. Very soon, we’ll be doing all our shopping, our traveling, and listening to that same Mariah Carey song over and over again.
Many people see the holidays as a time for disconnecting, and while that’s partially a good idea, we think the holidays are also a great time for reconnecting.
It’s easy for us to lose touch with our existing clients. The holidays give us the perfect opportunity to reconnect with them, and not in a “salesy” way. While we are in the real estate business, we are also in the people business.
Start making plans for how you want to reconnect with your clients. Use the tools and information we give you. That information might be the best holiday gift we can give our clients.
- James and David
Zillow forecasts growth in home values
Source: Zillow
Zillow forecasts that home values nationwide will grow 3.3% overall this year, down from last month’s expectation of 4.3%. The company also predicts that home values nationwide will grow by 2.1% over the next 12 months, down from last month’s prediction of 4.9%. Here’s what else Zillow projects:
Existing home sales for 2023 will decline 18% from 2022, down to 4.1 million
For-sale inventory is expected to remain near today’s historically low level, limiting potential sales and keeping upward pressure on home values
Our take
Zillow’s forecasts are a little lower than we expected, but there is a silver lining. While many home shoppers are priced out of the market, there are enough active buyers to keep up the competition on the few homes available for sale.
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Realtor.com and Homes.com running neck-and-neck
Myrtle Beach: https://tinyurl.com/yckyte7j
In terms of unique visitors, Zillow is still the #1 listing site, but the battle for second is tightening. Realtor.com was in second place last month with 51 million, but Homes.com came in a very close third with 47.7 million. That’s according to data from web traffic aggregator Comscore. This is surprising news since Homes.com – which is owned by commercial real estate giant, Costar – is a relatively new player to the listings game.
Now there is some debate here. Homes.com is already claiming that it has overtaken Realtor.com. Their upcoming quarterly earnings reports, which include internal traffic data, will give a more definitive answer on their relative positions.
Our take
This news has got to be raising concerns for all of Costar’s competitors, even Zillow. We are truly hoping that Zillow and the other platforms will be able to compete. We fear that if they don’t, residential agents, like their commercial counterparts, will be paying exorbitant prices to Costar sooner than they think.
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Top 10 metros where the income gap is jumping
Source: Redfin
The typical homebuyer now needs to earn 15% more than they did a year ago in order to afford a home. According to Redfin, the typical monthly mortgage payment is $2,866, an all-time high, and the typical American household earns about $40,000 less than what it takes to afford a median-priced home.
Here are the top 10 metros where the income needed to buy a home jumped the most year-to-year:
Newark, NJ – 33.4%
Miami, FL – 33.4%
Bridgeport, CT – 32.1%
Dayton, OH – 31.2%
Rochester, NY – 30.7%
Hartford, CT – 30.2%
McAllen, TX – 29.8%
Providence, RI – 28.9%
Lake County, IL – 28.9%
Milwaukee, WI – 28.8%
Our take
Without a doubt, affordability has become a problem, especially for first-time buyers. When buyers can sell a home and buy another one, that obviously puts them in a much better position than first-time buyers who don’t have that equity. But those year-over-year jumps can be a little misleading. In some markets, the amount needed to buy homes isn’t high. For example, Dayton may have jumped 31%, but the amount needed to buy a median-priced home is $60K.
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Schematics
The news that just missed the cut
Sacramento: https://bit.ly/3EM9M2y
Billionaires are driving South Florida home prices to new records
These are the 5 home features that turn buyers away
Fannie Mae and Freddie Mac will now consider projected income from ADU rentals when lending
7 best website builders for real estate agents, brokers and brokerages
Real estate agents’ 12-month prospecting plan
Foundation Plans
Advice from James and David to win the day
As we said up top, the holiday season will soon be upon us. Every party is a chance to meet new people and network. Here are three tips to help you make the most of every outing:
Keep your networking organic – There’s a reason we don’t carry business cards. We’re not on a mission to sell. We want to make connections first. We recommend going to parties, working the room, and then, when people ask what you do, have your quick, two-sentence elevator pitch ready. Don’t be afraid to share. People are always looking for a quality agent. Remember, you’re a hot commodity!
Be memorable – If you do make a great connection with a potential client, follow up with a thoughtful text or a small gift sent to their office. Few agents go the extra mile, so you’ll really stand out.
Host your own event – Plan a Halloween or holiday party and invite your clients and connections. Encourage them to bring a friend. You’ll grow your network and continue strengthening those existing relationships.
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Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Mortgage News Daily
That’s a wrap on this edition of The Blueprint!
Remember: each day is a gift and a new opportunity to lead the life you want and to become the person you want to be. The mistakes and missteps you’ve made in the past don’t define you. Live as intentionally as you can and be ruthlessly focused on the goals you’ve set out to achieve. You can do it!
Thanks for reading, and we’ll see you back here on Tuesday!
- James and David
