Why people are refusing to sell their homes
Plus, how to build your leads database
The most expensive home ever sold at auction
When a home has a name like “The One”, you know it’s gonna make headlines. Sure enough, this 105,000 sq. foot, 3.8 acre estate has attracted some serious attention. This property was originally listed for $295,000,000, but just sold at auction to Fashionova founder Richard Saghian for $141,000,000. Even with the slashed price tag, it still set a record for homes sold at auction.
The One’s remarkable price drop isn’t a sign that the luxury market is cooling. While it’s an incredible property, it will probably need at least $10M in renovations and repairs just to bring it up to par. It sold at about $1,410 per square-foot, which isn’t unusual for this area. All things considered, we believe Saghian probably did pay close to true market value.
At the end of the day, homes are only as valuable as the price people will pay for them. This isn’t a signal that prices are reversing, but that just because something is exceptionally unique doesn’t always mean people will pay more for it.
- James & David
Another record-high for housing prices
In February, the median listing price hit a record-high $392,000. Home prices are up 12.9% YoY, and a full 26.6% in the past two years. In typical years, the spring buying season doesn’t start until… well, spring. But this year, buyers are rushing into the market in hopes of beating the Fed’s upcoming rate hike.
Why are prices so high? Well, one big reason, active listings are now down 24.5% YoY across the 50 largest US metros.
By now, you know the story here. There’s just no inventory hitting the market. And with higher interest rates on the horizon, more buyers are crowding into the already limited space. This is your chance to create your own opportunities while you can! Chase every potential listing. That’s where you’ll get the greatest payoff for your work. As for active listings being down, only time will tell what that means for the market. But today, the market is on fire, so let's get after it!
Homeowners are holding their ground
One factor often overlooked about today’s incredibly tight housing market: people just aren’t moving as much. According to Redfin:
In 2021, the average homeowner kept their place for 13.2 years. In 2012, that number was only 10.1 years.
33% of homes are owned by someone 65 or older, an increase from 28% in 2012. Rather than downsizing, many of them are choosing to stay where they are.
California has the longest average tenure at a whopping 18 years, due to their property tax laws that incentivize homeowners to keep their properties.
There aren’t enough houses being built and many people don’t want to move. Also, rising mortgage rates and overall uncertainty with the economy may discourage people from selling. You can use this info to your advantage. If other sellers aren’t willing to make a move, that leaves more opportunity for sellers who are. Tell your sellers there’s money to be made right now. They can fetch a record-setting price and historic interest rate. It’s a rare combination that won’t last forever!
In this market, real estate is a top career choice
Housing inventory may be at a record low, but the number of agents just hit a record high. As of December, the National Association of Realtors is over 1.5M members strong. As “how to become a real estate agent” repeatedly topped Google’s search trends, over 156,000 new agents joined the NAR in 2020 and 2021— up 60% from the two years prior.
In a year plagued by hiring shortages and the Great Resignation, these 10 states added the most new agents:
Some new agents come into this career thinking success will happen overnight. Homes are practically selling themselves, so this must be easy! But the reality is that you’ve got to be prepared to give it your all. It takes time to build your pipeline and expertise. The best way to stand out is to continually think outside the box and be willing to work harder than everyone else around you.
The news that just missed the cut
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Redfin’s biggest takeaways from February’s housing market
7 creative ways to generate more listings
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Advice from James and David to win the day
When it comes to building up our database and pipeline of potential leads, we come back to the basics month after month:
Leveraging social media to connect with potential clients
Sitting open houses to network with both agents and buyers
Asking for referrals when we connect with past clients
Sending out a monthly newsletter-style email with updates about the local market (and a stat or two from The Blueprint!)
No matter what you’re doing to build your own database, be consistent! Don’t give up. That’s how you turn this from a new pursuit to a lifelong career, or from a side hustle to your main focus. No matter how many rejections you face this week, keep going! Because when you’re consistent, the wins will come.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
We’ve revamped our question form to give you more ways to ask and share. So… what’s on your mind? Ask away, here!
Also, If you found today’s Blueprint helpful, funny, memorable, or noteworthy in any way, would you do us a favor? Forward it to a friend (or 15!). When one of us improves, we all get better.
See you on Friday, have a great week.
- James and David