Our reaction to the Fed hike

To nobody’s surprise, the Fed raised interest rates 75 basis points on Wednesday. 

We all knew this was coming because inflation is still too high and the market needs to normalize. No one is a fan of rate hikes, but as an agent, this doesn’t affect much of our day-to-day. Buyer interest is still strong, transactions are still happening, and we still don’t think this is anything like 2008. 

So let’s get out there! Be sure to communicate what’s happening in the market to our buyers and sellers, and use this as an opportunity to separate yourself from the rest of the pack!

- James and David

Active home searches jump in Q3

Agents will love to hear this stat. The share of prospective buyers who moved from passive to active home searching has increased in every region in the last two quarters of 2022. While high interest rates have priced many buyers out of the market, the data shows that the market is starting to shift. Check out these impressive stats:

• Q3 saw a 10% increase in the number of active home buyers, jumping from 49% to 59% in Q2

• Every region saw an increase in the share of buyers actively searching for a home

• The southern region reported the greatest increase in active home searches

Our take

This is great news for the market. As we expected, now that the shock of rising interest rates has worn off, buyers are starting to come back around. The rates may be higher than normal, but historically, they are still relatively low. Demand is still there. Find your buyers the perfect property, call back sellers who maybe were hesitant to list, and get that deal done.

Luxury real estate still a top investment

Luxury real estate remains a solid investment despite the current market cooling. Since 2017, luxury single-family homes have appreciated a whopping 60%, and luxury investment property values have risen over 40%. Investors see luxury real estate as a safer investment strategy than more volatile investments like stocks, bonds, pensions, or crypto.

Here are three major reasons why wealthy investors are scooping up luxury properties:

1. Diverse investment portfolios are healthy portfolios

2. Real estate investment is a stable hedge against inflation

3. Luxury real estate is a prime asset for passive wealth building

Our take

We’ve always believed that buying a home is the best investment you can make, but since the pandemic, this has become even more true. The luxury market has been a safe haven for wealthy individuals with excess cash. People have lost trust in the stock market due to the recent volatility and would rather own a second and third home instead. Breaking into the luxury market isn’t as hard as you think. We did a whole podcast episode on this very topic. We highly recommend you listen!

Top 10 metros where buyers are heading

Redfin found that a record high 24.2% of buyers considered moving to a different metro area in Q3. High home prices, more remote work options, and a possible recession means more buyers looking to relocate to affordable markets. 

Here are the top 10 metros buyers are moving into:

1. Sacramento, CA

2. Miami, FL

3. Las Vegas, NV

4. San Diego, CA

5. Tampa, FL

6. Phoenix, AZ

7. Cape Coral, FL

8. North Port/Sarasota, FL

9. Dallas, TX

10. Portland, ME

Our take

If you’re operating in one of the up-and-coming areas, this is your chance to become the local expert on the top neighborhoods, restaurants, schools, and amenities. You can even create your own Welcome To (Your City) Guide to send to potential incoming clients. Not only will it help them get to know the area, but it means they’ll remember your name. This market provides a great opportunity to get in front of new clients that are looking for a trusted realtor.

Schematics

The news that just missed the cut

• 6 pro tips all agents should know about home staging

• Opendoor cuts 18% of its staff as market cools

• 5 facts to reassure worried clients

• Home inspectors share what they wish agents knew

• Why investors should scoop up real estate right now

• Layoffs expected at Wells Fargo as loan numbers fall

Foundation Plans

Advice from James and David to win the day

We see a lot of the same mistakes from new agents. These are three of the biggest mistakes that all new agents should avoid making:

1. Assuming success comes easy. There’s a lot of rejection on the road to being a successful agent. In this business, you have to get out there, knock on doors, and generate leads. Successful agents understand the importance of networking and know that every “no” is a potential “yes” in the future. Your success depends on how hard you’re willing to work for it!

2. Thinking of real estate as your “backup” plan. This also ties in with assuming real estate is easy. You have to have a plan for how you’ll generate clients and how you’ll market yourself and your business. Treat your real estate business like a career instead of a hobby, and you’ll be closing deals in no time!

3. Sticking to your personal network. Your personal connections are definitely important, but as a new agent, you’ve got to branch out. Networking and door knocking are two of the most important things a new agent can do to generate new opportunities and expand their list of potential clients!

Want more tips for newbie agents? Check out this article.

The Blueprint Spotlight

Want to connect with Ed? Follow him on Instagram @edstulak

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

We're approaching the middle of Q4, so it's a great time to check in on your end-of-year goals. Take a few minutes this weekend to evaluate your progress and find areas for improvement in your business. (We can always improve somewhere!) Maybe you can boost your client calls next week or set a goal of knocking on 25 doors. Consistent outreach is key to reaching your sales goals and finishing the year out strong!

That's all for this edition of the Blueprint. Have a great weekend, and we'll see you on Tuesday!

- James and David

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