Real estate giant makes stunning announcement
Plus, this one stat shows why homebuyers are struggling
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When we launched our course just a few short weeks ago, we knew that was just the beginning of the advice and knowledge we could share with you.
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Small rays of sunshine for buyers
The US housing market is starting to flash a few small rays of sunshine for prospective homebuyers. Here’s what Business Insider reports in its outlook for the fall/winter housing market.
Inventory is growing at a time of year that usually sees declines
Competition in the housing market is cooling off fast, even for this time of year
The weekly share of listings with a price cut climbed to 9.2% in the week ending September 16th, the highest share since November of last year.
The share of homes that sold for more than their final list price has been gradually declining, from a peak of 41.9% of closed sales in the week ending June 24th, to 38.3% in the week ending August 12th
This is not a buyer’s market by any stretch, but for a few determined buyers with enough of a budget, the next couple of months might offer a good chance to capitalize. There are more motivated sellers and more active listings overall than at any time since last December. This supply trend, coupled with higher mortgage rates pushing most buyers out of the market, means that there is less competition for those home shoppers who remain in the hunt.
Where home prices are outpacing wage increases
In 99% of the counties ATTOM studied in its U.S. Affordability Report, median-priced single-family homes and condos of today are less affordable when compared to historical averages. It now takes about 35% of take-home pay to afford a home (most lenders believe it should be no more than 28%). Home price appreciation has outpaced wage increases from Q3 2022 to Q3 2023 in 47% of the counties analyzed.
Here are the top 10 counties where home prices rose faster than wages:
Cook County, IL
San Diego County, CA
Orange County, CA
Miami-Dade County, FL
King County, WA
Broward County, FL
Santa Clara County, CA
Alameda County, CA
New York County, NY
Middlesex County, MA
35% percent debt-to-income is simply unsustainable. If this trend continues, homeownership will be out of reach for most people. There is very little we agents can do to influence mortgage rates, but we absolutely need to encourage our local and national leaders to build more housing. Similarly, we need to cultivate an attitudinal change among our friends and neighbors. It won’t be easy and it won’t be quick, but we can’t let NIMBYism win. It will crush our industry, and the dreams of many, many would-be homeowners.
Redfin is moving to end support of NAR
On Monday, in a major announcement, Redfin announced that it is moving to end “support of the National Association of Realtors® (NAR).” Redfin is leaving for two reasons: NAR policies requiring a fee for buyer agent compensation on every listing and NAR’s “pattern of sexual harassment.” Even more importantly, Redfin is asking NAR to decouple NAR membership from MLS access.
Considering the high percentage of NAR members who joined only because it was required to access the MLS, removing this requirement would likely cost NAR millions of dollars in membership dues.
This is clearly a big blow to NAR, not only because Redfin is departing, but because Redfin will require its agents and brokers to leave NAR as well. Ever since the New York Times exposé, NAR’s prestige and grip on the industry has been slipping, so we will be keeping a close eye on what happens next.
The news that just missed the cut
Advice from James and David to win the day
In 2024, it’s going to be imperative that agents build relationships with builders and developers. They’re offering the best deals right now for most buyers. Today, we share our best tips to develop a network of developers who will feed your business for years to come.
Start with the deals – The best way to get noticed by a developer is to bring them an amazing deal. Instead of approaching local developers asking for opportunities, bring them a deal they can’t pass up!
Take buyers to the site – Developers want to work with agents who are constantly making connections and finding new buyers. This proves you’re the kind of agent who will do everything you can to find the perfect buyer when the property is ready.
Practice your pitch – Know what you’re going to say before you set foot on the jobsite. Developers want to work with confident, knowledgeable agents, and your bold pitch is your one shot to prove that’s you!
You ask, James and David answer!
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: Mortgage News Daily
As we are in the final quarter of this year, don’t let the enormity of everything you have to do as an agent overwhelm and paralyze you. Break down what you need to do into small manageable tasks, and then execute! Neither your plans nor your journey is going to be perfect. Just start and optimize as you go.
That’s a wrap on today’s Blueprint! Thanks for reading, and we’ll see you Friday.