This made me laugh
I (David) was in the office the other day when I overheard one of our junior brokers on a call with a potential buyer. I could tell the buyer needed some convincing. The broker was working every angle and it appeared that nothing was getting through. Finally, the broker said to the buyer, “Buy land… they’re not making it anymore.”
I chuckled. You gotta give it up for him for pulling that out of his bag of tricks.
I’ll keep you posted if it ends up working.
Homebuying competition simmers down
A year ago, bidding wars were the norm, but last month, less than half of all bids written by Redfin agents faced any competition at all. Here are some stats from June:
Only 49.9% of offers faced a competing offer, the lowest rate of competition since May 2020, marking the fifth straight month of declining competition
Competition was the lowest in Tampa (just 28.9% of offers faced competition), Riverside (31.9%), and Phoenix (35.3%)
Nationwide, townhomes remain the most competitive home type, with 54.6% of offers competing against at least one other offer
We’ve been seeing this in our day-to-day too and it’s healthy!!! Homes in the right area are still getting multiple offers, but overall, our buyers are finally seeing some relief. As the market normalizes, be ready to start having the price reduction conversation more often with your sellers, and prepare for more negotiations on behalf of your buyers.
Investors love real estate
According to Bankrate’s latest survey of 1,025 adults, real estate nabbed the title of favorite long-term investment (defined as ten years), beating out stocks, crypto, and gold, among others. Check out the key insights from that survey:
29% of respondents named real estate as their preferred investment, the second-highest share in this survey’s 10-year history
Real estate earned the top spot in this survey for the third time in four years
Stocks (26%) were a close second, while cash investments (17%) and gold (9%) lagged
You may not consider yourself an investment specialist, but you are. Real estate will always go up over time. Don’t forget that! You’re helping people make the best investment decision they possibly can. And the data in this story is as good as gold ;) Got a buyer on the fence? Send them this story. It backs up exactly what you’re saying— real estate is the best thing you can buy right now!
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Source: Young Money
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Where's everyone going?
Relocators just set a new record. According to recent Redfin data, in Q2, a record-breaking 32.6% of homeseekers considered moving to a new metro, up from 32.3% in Q1 and just 26% before the pandemic
Check out the top 5 cities with the highest net inflow from out-of-towners:
Las Vegas, NV
And the top 5 cities with the highest net outflow:
San Francisco, CA
Los Angeles, CA
New York City, NY
People may move away from major cities like NYC and LA from time to time, but those cities are absolutely icons. They won’t be down for long. If you’re operating in one of the up-and-coming areas, this is your chance to become the local expert on the top neighborhoods, restaurants, schools, and amenities. You can even create your own Welcome To (Your City) Guide to send to potential incoming clients. Not only will it help them get to know the area, they’ll never forget your name.
This $74M NYC apartment is the most expensive local deal of the year
Foreclosures and delinquencies are up in June
Lumber futures are down 57% from January high
What you need to know about investing in REITs
Blackstone is set to launch the largest real estate fund of its kind
The latest market update from Redfin's Chief Economist
Anyone can invest in real estate though these 9 innovative startups
Advice from James and David to win the day
New developments are absolutely brimming with opportunity for real estate professionals. Here’s how to start building the relationships you need to capitalize on the developments happening in your area:
Share your intentions. Builders don’t have time to chase down agents. When you meet them, be clear about your goal of becoming their new go-to resource. Then follow up consistently!
Sharpen your expertise. Learn everything you can about new construction and the local area. Be ready to highlight the best features of new builds, including eco-friendly construction, energy efficiency, and builder warranties. Get to know the neighborhood inside and out.
Leverage every sale. When you do get that golden opportunity to co-broker a deal with a builder, do everything you can to turn that into an ongoing relationship. Ask the builder for referrals and start talking about their next property. You never know where one great sale can lead!
Check out this article for more great tips on networking with builders.
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
Thanks for reading The Blueprint! If you learned something from today’s top real estate stories, forward this email to a friend!
We’ll see you back here on Friday! 🏠🚀
- James and David
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