November 30, 2021
It’s time to think about how you can start your 2022 strong. This week, begin tying up loose ends, do what you can to close your escrows, and think forward to January. Get your pipeline in order, pull your year-to-date reports, and have your business plan prepared. Remember, how you end this year determines how you’ll step into the new one.
Don’t wait for the calendar to turn to start your new year.
- James and David
With prices high and inventory low, the manufactured homes industry is exploding. Not counting the cost of land, manufactured homes (those that are factory-built and delivered move-in ready) cost an average of $87,000, compared to $309,000 for a new on-site build. And they’re far from basic, with optional premium finishes and site-built features like walkways and patios. For the first time since 2006, home manufacturers expect to deliver over 100,000 of these units to lots across the country.
In states like California and Colorado, builders are creating entire high-end manufactured home subdivisions. In these neighborhoods, the homes come with garages, porches… heck, they’re even eligible for conventional mortgages. That makes them particularly accessible for price-sensitive buyers.
If you’re showing a manufactured home to your client, treat it just like a regular home. Research the developer or builder. Confirm it was built by a reputable company. Run local comps. Then when it comes time to make an offer, push for full inspections and a solid home warranty. Make sure your client is protected, physically and financially.
October marked another incredible month for home sales across most of the country. It was the strongest sales month since January 2021, up 0.8% from September. Investors were responsible for 17% of sales last month, compared to 13% in September. Cash buyers snapped up 24% of the homes sold in October. The strongest growth was in the Midwest, where home sales rose by 4.2%.
At this point in the year we’re on track to see 6.34M homes sold in 2021. That’s the best housing market performance in 15 years. Year to date, home sales are up 11% compared to 2020.
Don’t underestimate the Midwest. It’s been a popular relocation destination throughout the pandemic. With so many people working remotely, the Midwest really offers more bang for their buck. Homeowners can greatly reduce their cost of living, possibly even upsize their home, and not miss a beat.
Never has there been such a prolonged home-buying frenzy over such expensive homes. In fact, according to the National Association of Realtors, 2021 has marked the shortest home inventory shelf life in recorded history. This year the median number of days on market dropped from three weeks to just seven days.
With listings down 22% in October 2021 compared to one year before, it’s no wonder we’re facing the shortest days on market since the NAR started recording the metric in 1989. What's behind these record-breaking sales? Chalk them up to remote home touring options, online showing schedulers, and an increase in cash buyers.
With houses selling as fast as they are, you’ve got to tap into off-market opportunities as often as you can. Keep your ear to the ground and speak frequently with other agents. Let them know what kind of properties you’re looking for in case they catch a lead. And keep in touch with your past clients. If you’ve got the right buyer at a good price, they may just be ready to sell.
The news that just missed the cut
Advice from James and David to win the day
Knock, knock! Who’s there? No, not the pizza guy. It’s our top five door-knocking tips to drive leads and grow your network!
Keep it up! We’ve all faced a slammed door or two. It comes with the territory. But don’t let it get you down. Pick yourself up and try the next house. You’ve got this!
Keep the latest industry data in your back pocket with today’s mortgage rates:
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See you on Friday!
- James and David
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