May 24, 2022
James here! I’m speaking this weekend at the Home Design & Remodeling show in Palm Beach, FL. I love opportunities like this. I get to take all that I’ve learned over the past 15 years, and share it with individuals who want to grow in their professional life.
If you are in Florida, check out the link here.
Hope to see you there!
With interest rates through the roof and mortgage applications on the decline, you’d think home prices would be dropping too. Not so fast. According to recent data from Redfin, home price growth has barely slowed, and it shows no major signs of letting up just yet. Experts say that prices haven’t dropped because demand is strong and supply just hasn’t caught up.
Here’s what’s happening in the market:
At first, this may look like glum news for buyers, but we think this will lead to opportunity. Sellers won’t want to miss out on this market, so they will start listing their homes and creating more inventory. When that happens, it’ll create a more competitive market and force those sellers to lower their prices.
In pre-COVID days, urban homes were generally gaining value more quickly than suburban homes. But the pandemic has changed that. Since July 2021, the typical suburban home gained $66,490 in value, compared to $61,671 for the typical urban home.
This means that competition for homes near city centers could be lighter than it’s been in a decade. This doesn’t mean it won’t be extremely competitive, but this could be good news for buyers who are looking for any signs of hope in this market.
This makes sense to us. We saw so many buyers move to the suburbs to get more space during the pandemic. This shift probably won’t last forever, so now is a good time to check out the pockets in the city that might have the best bang for their buck and reach out to potential buyers.
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Jeff Bezos sees single-family home rentals as a “prime” opportunity. Bezos Expeditions has now made two sizable investments into the startup Arrived Homes. The company buys up rental properties across the country and gives investors the chance to own a piece of the booming rental market for as little as $100. It’s the first SEC-qualified investment platform to offer this opportunity. The company already has 102 properties under management, but it’s planning to buy more with this latest influx of cash.
This is a great sign for the housing market. It shows the world that, no matter if you’re Jeff Bezos or someone purchasing a home for the first time, people always fall back to brick & mortar. Real estate is still a strong investment, and the best asset when it comes to diversifying your portfolio.
The news that just missed the cut
Advice from James and David to win the day
If you’re leading a team of rookie agents, setting them up for success can feel daunting. To help you onboard your new agents and get them started on the right foot, use these quick tips:
Keep the latest industry data in your back pocket with today’s mortgage rates:
Knowledge is the key to success in real estate. Seriously, if you know your local market inside and out, if you know what’s happening nationally on a macro level, and if you know what buyers and sellers are thinking and feeling, you’ve already got 90% of this job figured out. Keep reading and keep learning. We promise you, it’s going to pay off!
- James and David
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