Before we get into the news of the day, we must address the bigger story. Our thoughts are with those involved in the conflict between Russia and Ukraine. Our hope is that peace comes sooner rather than later, and this war ends before any more innocent lives are lost.

- James and David

The fastest-growing single-family home markets

The single-family home market has been growing around the country, but especially in Texas. The state is home to not one, not two, but three of the Top 10 fastest-growing metro areas for single family homes. Here is the list of those areas ranked by new single-family building permits issued in the past decade. 

1. Houston, TX - 392,136
2. Dallas, TX - 323,250
3. Atlanta, GA - 222,208
4. Phoenix, AZ - 207,370
5. Austin, TX - 152,779
6. Charlotte, NC - 139,889
7. Orlando, FL - 131,544
8. Washington, DC - 130,858
9. Nashville, TN - 119,129
10. Tampa, FL - 117,906 

Our take

It’s helpful to track the permitting activity in your own city because it gives you clues to upcoming local trends. Watch where the most new permits are being issued. That could be the next in-demand pocket where home values are about to skyrocket. Knowledge is power for you and your clients!

As aid runs out, foreclosures roll in 

In July 2021, the foreclosure moratorium was lifted. At that time, an estimated 1.5M to 2M homeowners were in forbearance. Here’s how that aid lift is currently impacting the market:

• Foreclosures are up 31% YoY
• 230,000 homes are in the foreclosure process
• More than 7,000 of those homes are abandoned

But there’s good news for those facing foreclosure. With home prices at an all-time-high, very few people owe more than their home is currently worth. Most distressed homeowners can sell their home, cover the mortgage, and still turn a profit. 

Our take

Here’s where it pays off big time to have a good relationship with your title agent. The title company can pull lists of homes that are in default and might go into foreclosure soon. Those owners could be good connections for you. You could help them sell their homes before they have to hand them over to the bank. Make sure you have a good relationship with a great title rep who’s willing to pull lists and data like this for you. That’s valuable info you can use to maximize your lead area. 

Don’t expect the market to slow down this year!

According to CNBC, home sales just might hit a 16-year high in 2022. Despite low inventory, higher home prices, and rising interest rates, all signs point to an even hotter market than last year’s. Why?

• Inventory is expected to grow 0.3% this year 
• The number of new building permits is finally trending up
• Investors are entering the residential market in record-setting numbers 
• Millennials (a huge share of current buyers) are getting older, making more money, and feel ready to buy their first homes

Our take 

We think it’s absolutely possible 2022 will be another record-breaking year… as long as interest rates stay low. If rates rise and sellers drop their list prices, demand will hold strong and steady. But if rates rise and prices continue their upward climb, sales may lag a bit. The takeaway is this: no one knows for sure, so just ride this wave as best you can for as long as possible. 

Schematics 

The news that just missed the cut

• In this hot market, even starter mansions are in short supply
• Will blockchain and NFTs make title companies obsolete?
• These Manhattan neighborhoods are getting 13,000 new condos
• TikTok is obsessed with #houseflip right now
• Blackstone’s new company is focused on affordable homes

Foundation Plans

Advice from James and David to win the day

Last week, I (David) had the chance to join a group of talented agents from across Canada in an exclusive mastermind class. The level of skill and industry know-how in that virtual room was incredible! As a special benefit for our Blueprint readers, you can access a recording of that session here. We covered some great topics, including:

• How to get listings when you have no track record. Like door-knocking, looking for tear-down areas, connecting with developers, and partnering with other agents.
• Where and how we door-knock. And how to handle the no’s!
• What to do in this crazy low-inventory market. Sitting open houses is one of our best strategies. 
• Solid tips for utilizing social media. Social media success isn’t luck, it’s science. Anyone can learn it. And if you can go viral, listings will truly fall in your lap.

Just in Case

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

What are you wrestling with in your real estate career? Need advice? Share it with us. Drop your questions here. 

See you on Friday.

- James and David