Where renters are getting hit the hardest
Plus, the most “fiery” area of the market
We just checked the calendar…
20. That’s the number of weeks left in this year. We hope that grabs your attention because it came as a jolt to us.
Now truly is crunch time if you’re an agent who wants to end the year strong. You really need to focus and dial in your attention on your core objectives. There are so many things we want to do each day, but we’ve learned that focusing doesn’t just mean concentrating on what we need to do, but also saying no to the good but distracting things we don’t need to do.
We always talk about the importance of envisioning your goals. How do you want the rest of your year to look? What do you still want to achieve? We promise that if you can answer those questions, you’ll start to figure out where to go – and where not to go – from there!
However, before you go ahead and do that, we suggest taking a few minutes to focus on today’s edition of the Blueprint. :)
- James and David
The market for land is heating up
San Francisco: https://tinyurl.com/573r6k7v
The market for developable land is red hot, as interest in land deals has risen to a level not seen since early 2022. That’s the conclusion from John Burns Research and Consulting in their latest survey of land brokers. They surveyed 78 land brokers in July and found these results:
45% said the Q2 market for land was "hot"
10% said it was “on fire”
Big homebuilders and single-family rental giants are driving much of this new residential development.
The Northeast is the hottest region for land deals, followed by Southern California, the Southeast, and Northern California. Meanwhile, Texas, Florida, and the Midwest have all cooled. Inventory of homes for sale is going to be lower than previously forecast
This trend doesn’t surprise us. What we’re seeing in the land market is similar to what we’re seeing in the housing market with homebuilders. If homebuilders are constructing more homes, they need more land. We’ll keep an eye on this to see how it has a ripple effect through the market.
The typical homeowner’s monthly payment is up 19%
The typical U.S. homebuyer’s monthly mortgage payment was $2,605 during the four weeks ending July 30, up 19% from a year earlier according to Redfin’s latest market update. Here are the key takeaways:
The median U.S. home-sale price is up 3.2% YoY, the biggest increase since November
The median asking price of newly listed homes was $387,223, up 1.7% YoY
Sale prices increased most in Miami (12.7% YoY), Cincinnati (9%), Milwaukee (8.6%), Anaheim, CA (8.5%) and West Palm Beach, FL (8.4%)
Home-sale prices declined in 19 metros, with the biggest drops in Austin, TX (-9.9% YoY), Phoenix (-4.2%), Detroit (-3.9%), and Las Vegas (-3.5%)
The same forces that have been affecting the market so far this year still haven’t let up. Home prices continue to rise due to the lack of supply, and inventory remains low due to those low mortgage rates that homeowners got their hands on during the pandemic. Now mortgage rates are staying closer to the 7% mark longer than expected. We do expect them to dip a little to 6-6.5% by the end of the year, so we’ll see how that affects the market.
The markets where rents have increased the most
Providence, RI: https://tinyurl.com/2ft55uvc
According to Zillow, the typical asking rent in the U.S. reached $2,062 as rents increased nationwide by 3.6%. These are the markets with the largest year-over-year rent increases.
Hartford, CT (7.0%)
Providence, RI (6.5%)
Boston, MA (6.5%)
Chicago, IL (6.0%)
St. Louis, MO (5.7%)
Buffalo, NY (5.7%)
Cincinnati, OH (5.6%)
Kansas City, MO (5.6%)
Milwaukee, WI (5.3%)
Louisville, KY (5.2%)
This report from Zillow is very important because of what it tells us about inflation. By seasonal standards, this marks the first month of above-average rent growth after eight months of below or average pace. It’s too soon to tell whether this increase is just a bump in the road on a downward trend or the early sign of a re-heating market. We’re winning the fight against inflation, but it’s not over yet.
The news that just missed the cut
Advice from James and David to win the day
There is no “one way” to find new clients, but with the right strategies, we believe you can quickly learn how to generate real estate leads. Today, we’d like to offer you three tips:
Farm an area for potential sellers – It’s absolutely crucial to develop your book of business. Our colleague Vinny Morales expertly did this through his ingenious but simple email campaign that yielded more than $100 million in sales with his partner Kris Everett. We cannot encourage you enough to listen to our conversation with them. It’ll truly show you that anything is possible.
Volunteer your skills and time – As a real estate agent, networking is a great way to demonstrate your skills and knowledge to prospective clients. Organizing free-to-attend events like open houses or a Q&A session for first-time home buyers lets you meet potential clients face-to-face and win their business. You can develop an understanding of their wants and needs and show them how you can help them achieve their real estate goals. These events don’t always need to be held in person. You can field questions from buyers and sellers on a live stream or post a home walkthrough video on YouTube.
Create a referral network – In addition to joining a pre-existing agent referral network, create a referral network of your own by partnering with trusted local vendors in your area. For example, you might be able to form a partnership with various types of real estate professionals: appraisers, contractors, inspectors, mortgage brokers. Simply ask them if they’d be willing to recommend you to their clients for a fee. In turn, you can recommend them to your clients as they navigate the buying or selling process. It’s a win-win for both parties and another way of generating revenue.
For more tips on how to get real estate clients, read this.
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: Rocket Mortgage
“The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and starting on the first one.” - Mark Twain
Thanks for reading, and we’ll see you Friday!