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Is this the magic number for home sellers?
Plus, condo sales make massive gains
Rinku Mathew
August 01, 2023
Putting yourself out there
We always talk about the importance of simply putting yourself out there, and that’s why we love to share this story from our early days.
We were in Bel-Air, looking for teardowns for a developer, when we happened upon the perfect house. We knocked on the door and managed to convince the homeowner to sell. We got a great price, so it was an all-around awesome deal.
But the story doesn’t stop there. Another client heard about the sale and called to see if we could sell their Bel-Air teardown too. Just like that, we got another listing, and we didn’t have to do anything to land it. We had already done the work!
It just goes to show that when you put yourself out there, you truly never know what can happen.
Let’s jump into today’s Blueprint!
- James and David
5% is the tipping point
Source: Unsplash
US homeowners are twice as willing to sell IF their mortgage rate is 5% or higher. That’s according to Zillow’s latest survey on mortgage rates and housing inventory. Here are more key takeaways from Zillow’s survey:
90% of mortgage holders reported having a rate less than 6%
80% reported a rate of less than 5%
33% reported a rate of less than 3%
25% of homeowners are considering selling their home in the next three years or currently have their home listed for sale, significantly higher than 15% one year ago
Our take
Zillow has done us all a great service with this survey. This is concrete data that tells us when people are willing to sell. The majority of our sales inventory will be composed of new home constructions, but expect inventories to rise as this potential 25% of home sellers come onto the market.
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Buyers flock to condos as housing costs surge
Source: Unsplash
Buyers have turned to condos and townhouses as housing costs surge, according to Realtor.com and Axios. Here’s some data on this trend:
Sales rose 14.3% YoY for townhouses and condos priced at $470,000 and up
Under-contract homes sales dropped 18.4% from June 2022 to June 2023
Condos are selling up to 36% below the median price for a single-family home, depending on the market
In May, the median sales price of a single-family home in Raleigh, NC was around $429,000 vs. $275,000 for a condo
Our take
This trend doesn’t surprise us one bit. As both mortgage rates and the price of single-family homes have gone up this year, condos are extremely appealing to younger buyers looking for more affordable homes, and empty nesters who want to downsize to a maintenance-free lifestyle. Even if your buyers aren’t part of these demographic groups, have them consider this option if they’re priced out of the current single-family market.
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The 7 big cities people are fleeing and flocking towards
Source: Data USA
Business Insider tracked where people are moving and leaving based on analysis of US Postal Service data which includes change-of-address requests from individuals, families, and businesses filed between January and May 2023. Here are the top 7 cities on each side of the move:
Top 7 Cities People Are Fleeing
| Top 7 Cities People Are Flocking To
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Our take
This report needs to be taken with a grain of salt. For example, the city of Katy is a suburb of Houston. So, yes, technically there was a net outflow from the city of Houston, but has there been a mass exodus from the Houston metroplex? You be the judge. Nonetheless, those kinds of technicalities aside, this report confirms that people are moving to find cheaper homes, and using remote work to live farther from city centers.
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Schematics
The news that just missed the cut
Source: Unsplash
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Foundation Plans
Advice from James and David to win the day
Sometimes it can be hard to set goals for a long period of time. This is why we suggest setting a 90-day plan. It’s much more manageable, and easier to visualize. Here are three helpful tips for building your plan:
Get your routine down and be disciplined about it – For five years, Michael Phelps didn’t miss a single workout. No matter what mood he was in, he got in his workouts. Follow his example. For the next 90 days, hit all your goals. Don’t miss a single one. Not a call, not an appointment, not a follow-up. But remember: the best routines aren’t just about being a work machine, they’re about creating the life you want to live. Your routine should be made up of habits that you value and make you your best self.
Ruthlessly focus on your goals – For the next 90 days, identify specific, measurable, achievable, relevant, and time-bound goals. They need to be written down and documented. Don’t just hold them in your head. Set aside everything that’s not relevant to your goals, even some good things. What you do for the next 90 days must be exclusively oriented toward your goals.
Score yourself weekly – On a weekly basis, track and measure whether you are hitting your goals. Did you make at least ten calls a day? Did you send out all your emails? Did you follow up? Did you have at least 20 real estate related conversations each day? Keeping track of your goals on a weekly basis will help you calibrate what you need to do to ensure you hit your 90-day goals.
To learn what else you can do to set yourself up for success, read this.
Q+A
You ask, James and David answer!
Q: When buyers want to work with you specifically, but you give them to your buyer’s agent on your team, do you ever get pushback from clients since they want your personally? And if so, how do you deal with that?!
A: This is such a great question because real estate is such a personal and personable business. When they reach out to you, they want YOU. So, one thing we’ve learned is that when this happens you have to set expectations and the narrative right a the beginning of the relationship. If you don’t have a clear line of communication with the client, the relationship becomes blurred very quickly. So, to avoid any miscommunication, we are very transparent and clear from the get-go.
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!
