This stat shows buyers are gaining power

Thinking outside the box

We’ve said it’s our goal to prepare you for this post-NAR settlement world. While getting listings has always been important, it’s about to become even more important.

In today’s Foundation Plans, we have some creative ideas for ways you can chase more leads. 

They may seem a little out of the box—or even VERY out of the box—but ask anyone who has been in this business long enough… you truly can never tell where your next lead might come from.

And now, on with today’s Blueprint!

- James and David

Buyers have more negotiating power

Buyers are gaining negotiating power in markets where new and total inventory has recovered. Sellers are cutting prices at an increased rate. In March, more than one in five homes on Zillow had a price cut, about 5% higher than pre-pandemic norms. 

That being said, 26.6% of homes sold above their list prices. That’s compared to 24.2% that sold over list a year before, and 20.6% that sold over list at this time pre-pandemic.

Here are more takeaways from Zillow’s March report:

• Total inventory nationwide increased by 7% in March and by 12.2% YOY

• New listings increased by 15.5% MOM and by 3.7% YOY.

• San Jose (18.4%), Dallas (16.6%), and Tampa (15.4%) are the metros where listings jumped the most YOY.

• The typical home in the U.S. is $355,696, up 1.14% month-over-month (MOM) and up 42.4% prior to the pandemic. 

• The typical mortgage payment is up 7.1% YOY

• New pending sales increased by 0.1% YOY and 17.7% MOM in March

Our take

It isn’t hard to see why buyers are getting their swagger back. They’ve got more options. That jump in inventory is allowing buyers to have more selection, and we are seeing that with sellers making price cuts. In fact, if you just look at the month of March alone, the current rate of the price cuts is the highest we’ve seen in March since 2018.

Top 10 metros where Gen Z is buying homes

Members of Gen Z (born 1997-2012) have typically been known for being thrifty, but neither the shortage of homes or high rates and prices have kept them from successfully becoming homeowners. This is surprising given they typically save about a third of their income, and start saving for retirement a full 15 years ahead of Boomers.

Using the most recent government data available, Realtor.com has identified the following metropolitan areas with the largest percentage of Gen Z homeowners:

1. Jacksonville, NC – 17.91%

2. Elkhart, IN – 17.86%

3. Lima, OH – 17.44%

4. Waterloo, IA – 17.14%

5. Cumberland, MD – 15.2%

6. Watertown, NY – 15.14%

7. St. Joseph, MO – 14.96%

8. Hinesville, GA – 14.86%

9. Dubuque, IA – 14.78%

10. St. Cloud, MN – 14.62%

Our take

Gen Z is making moves in the housing market. They are using every financial tool at their disposal – veteran loans, down payment assistance, remote work, online research to discover areas with houses fully $100K below market – to achieve their homeownership goals. This is a great piece of info for people of ANY age looking to get into the market. It shows that homeownership is a possibility, even for those who might need some assistance.

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Top 10 largest single-family markets

In February, the total number of single-family permits issued nationwide reached 155,236, an increase of 38.4% over the February 2023 level of 112,131. Single-family permits were up in all four regions, with the highest jump coming in the West (54.2%).

Texas, the state with the highest number of single-family permits, issued 26,454 permits over the first two months of 2024, an increase of 49.0% YOY.

Here are the top 10 metros that issue the highest number of single-family permits:

1. Houston, TX

2. Dallas, TX

3. Phoenix, AZ

4. Atlanta, GA

5. Charlotte, NC

6. Austin, TX

7. Tampa, FL

8. Nashville, TN

9. New York/Newark/Jersey City, NY-NJ-PA

10. Raleigh, NC

Our take

We were elated when we read this report, but we can’t stop and rest on our laurels. Our national shortage in homes is still an issue. And just look at that list. Is it any wonder why buyers in Texas and the South generally are buying homes and have more negotiating power, while residents in coastal states like California are moving to Texas and Florida? The laws of supply and demand haven’t changed, folks. If only more of our local leaders remembered that when making zoning and housing decisions!

Schematics

The news that just missed the cut

• What agents and brokers can and can’t do under new MLS rules

• Skills every agent needs to have 

• Kanye cuts the price of his Malibu mansion by $14 million

• Squatters have taken over Gordon Ramsay’s restaurant

• This $77 million Aspen home is Colorado’s most expensive listing

Foundation Plans

Advice from James and David to win the day

Even before the NAR settlement, acquiring listings was crucial to any real estate business. But given how the settlement has significantly shifted the balance of power to the listing agent, they’ve become even more important. Today we’d like to share some unique ways to generate listing leads that go beyond the beaten path.  

Connect with Airbnb owners – During the pandemic, many people got into Airbnbs as a business. However, revenues are actually down in many markets, and many owners have discovered that managing an Airbnb is more time consuming than they’d imagined. Either they want to get out of the business by repositioning their property, or sell the property entirely. Reach out to those owners and ask what they want to do next. Not only could you get a potential listing, you will often build a relationship with a person who is a potential investor interested in purchasing another home. People who get into the Airbnb business are clearly enterprising go-getters.

Connect with probate executors – You’d be surprised how many listings you can get through probate. On many occasions, executors of estates have to list and sell the home quickly. Depending on the county, you can pull the probates directly from the assessor's site and put them into an Excel doc and call them. Executors are looking for agents who can give them an idea about the market value of the property, who can list quickly, and who can sell quickly. This is an untapped resource often overlooked by many agents, especially those just starting out. To learn more, use this resource. 

Connect with divorce attorneys – It’s an amazing statistic, but over half the people who get divorces have to sell their real estate. Most couples are forced to sell their home during a divorce when one spouse is unable to buy the other's interest, or when the spouses cannot agree on the value of the house. This is an area where you can add some real service to people who really want to just move on. 

As you know, we are firm advocates of traditional lead-generating techniques such as door knocking. Our intent today is to help you get creative and think outside the box. Real estate is about connecting with people in different stages and walks of life. You’ll be surprised by how much people need an agent’s services. For more ideas, watch this. 

To learn more about Estate Media, visit their website.

Just in Case

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

“You are what your deepest desire is. As is your desire, so is your intention. As is your intention, so is your will. As is your will, so is your deed. As is your deed, so is your destiny.” — Upanishads

That’s it for today’s edition. We’ll be back in your box on Friday! 

- James and David