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Mortgage rate predictions we love to see
Plus, the metros where homes are selling the fastest
Rinku Mathew
May 09, 2023
Times like these
Buying or selling is pretty much always a hard decision. But, right now, it’s especially difficult. The market seems more complicated than ever. Headlines keep changing day to day, and confusing a lot of people out there. This kind of volatility can make people want to stick their heads in the sand and wait until it’s over.
But not us. We love situations like this! These are the times when genuine market leaders are born. Agents can set themselves apart by figuring out a way to zig while others zag.
In today’s market, putting up a sign and hosting an open house isn’t going to cut it. We all have to get creative and find any way we can to get a leg up on the competition.
This is precisely why we created this newsletter. We want to give you the information you need to get that edge, and lay out “the blueprint” for success.
Let’s dig in!
-James and David
Why now is prime time for sellers
Source: Boston Agent Magazine
ATTOM reports that the best time for sellers to put their homes on the market is in the spring and summer months, based on sales data over the past 12 years. This is when home buyers are the most active, and sellers can get the highest premiums.
Their analysis shows:
In spring, sellers can get 10% or more above market value if they sell (May - 12.8%, June - 10.7%)
In summer, they can get between 8-10% more (July - 9.6%, August - 8.2%, and September - 8%).
The best 16 days to sell are in the month of May alone
Our take
Many sellers are hesitant to list because they feel locked in by their low mortgage rates. But those rates are falling right now and are expected to fall even further. Sellers are actually in an excellent position to capitalize, especially considering these spring and summer premiums. Share this data with your clients and prospects, and show them why they might want to hit the market while it’s hot (…literally).
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Mortgage rates expected to fall
Source: National Mortgage News
Over the next 90 days, mortgage rates are forecast to drop. That’s according to The Mortgage Reports’ survey of all the major residential economists and housing authorities.
Here are predictions for the 30-year mortgage:
On average, it is forecast to drop to 6.28% by the end of Q2
On the low end, Fannie Mae and the Mortgage Bankers Association are predicting it will fall to 6.1% and 6.2%, respectively.
On the high end, the National Association of Realtors and the National Association of Home Builders forecast it to reach 6.3% and 6.56%, respectively.
Our take
This is such welcome news! This will help buyers purchase homes and might even light a fire under many hesitant sellers. Smart sellers will use these falling rates and use the premiums they can get during the summer months to make a great deal. It’s our job as agents to stay current on these developments and to connect the dots for our clients so that they can take advantage of the situations they find themselves in.
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Top 10 metros where homes are going fast
Source: Visit Dallas
Homes for sale are taking 17 more days to sell than a year ago, but they are selling 12 days faster than the pre-pandemic average set between April 2017-2019. That’s according to Realtor.com’s April Housing Report.
On average, homes for sale are sitting on the market for 41 days in the 50 largest metros.
Here are the metros where homes are selling the fastest:
Rochester, NY (17 Days)
Columbus, OH (24 Days)
Hartford, CT (24 Days)
Denver, CO (25 Days)
Boston, MA (26 Days)
San Jose, CA (27 Days)
Virginia Beach, NC (30 Days)
Seattle, WA (31 Days)
Milwaukee, WI (31 Days)
Nashville, TN (32 Days)
Our take
We can’t emphasize it enough. It’s important to manage your client’s expectations. Whether it’s pricing, mortgage rates, or a listing’s time-on-market, don’t let what happened during the pandemic be viewed as the norm. Nothing in the pandemic was the norm! Each market is different, but you can use these numbers to help sellers see how long they should expect their home sale to take.
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Schematics
The news that just missed the cut
Millennial homeowners are doing this instead of selling their homes
This NBA legend’s mansion just had a huge price cut
How LA’s “mansion tax” froze its luxury market
How a property manager turned agent built a million-dollar real estate portfolio in 4 years
Forget panic rooms. These new secret compartments are trending.
Foundation Plans
Advice from James and David to win the day
As we said above, don’t let what happened during the pandemic be viewed as the new normal. It is absolutely crucial to manage the expectations of your clients. Here are three tips for how to do that effectively:
Listen to Your Clients: You’ll be surprised by how often agents forget this step. You can’t manage your client’s expectations unless you have a clear understanding of what they are. Actively listen. Some clients aren’t clear in their own minds. Help them by asking the right questions and giving them a comfortable space to express their needs.
Educate Your Clients: Clients are bombarded by so much outside information that simply isn’t true. Educate your clients on what’s really happening in your market. You’re the real estate professional. Share what you know with confidence.
Use Open and Honest Communication: Right from the start, it’s important to discuss all the pros and cons. You want to be transparent with clients and avoid overpromising on factors you can’t control. Your honesty and vulnerability will act as the foundation for long-lasting positive relationships with your clients.
These are just a few pointers. To learn more, read this article.
Q+A
You ask, James and David answer!
Q: When door-knocking and you get the “BIG NO’s”, you said to keep going to them. A “NO” can eventually become a yes. But how do you handle that reach-out?
Also, how often do you knock the same neighborhood? Is it a new area every day? Do you go to the same neighborhood?
A: Great question. We don’t mean to knock on their door every day until they say yes, but we mean to get creative with the outreach. Did they give you an inkling as to why they said no? Can you host an event in the area, or send them a custom video? What added value can you give them? Sometimes a no is a no, but it’s important to remember that No’s turns into Yes’s, sometimes. As for the same neighborhood, we try every 3-4 months if we feel it is worthwhile. We have a spreadsheet that helps us track short-term, middle, or long-term prospects, and go from there. If we’ve exhausted an area, we target a similar zip code so that we can offer the same value.
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
That’s a wrap on today’s Blueprint!
Thanks for reading, and we’ll see you Friday!
