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Our take on Biden plan for housing crisis
Plus, where homes are selling VERY fast
Rinku Mathew
October 31, 2023
Don’t get tricked by the treat
Happy Halloween! For many of us, tonight marks the beginning of a very busy social calendar over the next couple of months.
We want to just take this moment right here to remind you that, in many ways, these couple of months can be the most challenging of them all. There are a lot of obligations, trips, dinners, and other events trying to pull our attention.
While those are important, make sure to keep your eye on the prize. Stay on target. Make sure you’re hitting your prospecting goals every day and week. And make sure you are doing all you can to end the year on an up note.
Yes, the holiday season is full of treats, but it’s very easy to get tricked into slowing down. All us hard-working people deserve a holiday, but that holiday will feel so much better knowing we’ve all done our best to deserve it.
Now on with this Halloween-themed edition of the… Boo-print.
(Sorry… we had to)
- James and David
Treats for home sellers in low-inventory markets
Source: Keeping Current Matters
In September, there were 522,780 fewer active listings on the market than in 2019, a decline of 42.6%. That’s according to Keeping Current Matters’ latest analysis. Here are three important takeaways from their study:
Homes spent two fewer weeks on the market in September 2023 than they did in the average September from 2017 to 2019, as limited supply spurred homebuyers to act quickly
69% of homes sold in less than a month nationwide
2.6 is the average number of offers on recently sold homes
Our take
By no means are we saying that we’re in a great market, but we can’t help but agree with what KCM is saying. Since there aren’t enough homes to go around, homes that are priced right are still selling fast, and the average seller is getting multiple offers from eager buyers. That’s just a fact, even with all the challenges we’re facing in our current market. Share these numbers with your clients. It may help get them moving.
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White House unrolls monster initiative to tackle housing crisis
Sarasota, FL: https://bit.ly/3qdGSEy
The Biden Administration has launched a new program aimed at tackling the US housing crisis. Developers can now access billions in federal funds to help convert empty offices into apartments. Here are the key points behind the initiative:
The White House initiative will make more than $35 billion available from existing federal programs in the form of grants and low-interest loans to encourage developers to convert offices into residential spaces.
Remote work has left plenty of offices empty. Vacancies are at a 30-year high (18.2%)
Both housing affordability and the number of available homes have deteriorated.
Conversions are faster and 20% cheaper than new constructions.
Our take
We wholeheartedly welcome this! Developers simply can’t convert vacant offices into residential spaces without tax incentives and zoning code changes. There are too many architectural, zoning, and construction costs for the conversion projects to pencil. These conversions, though, will not be enough to address our housing shortage. We need conversions AND new housing starts. We can’t say it enough: build, baby, build!
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Where houses are moving scary fast… and scary slow
Source: Redfin
Homes in upstate New York are selling in less than two weeks, while the typical home in Austin now takes almost two months to go under contract. That’s the latest from a new report from Redfin which highlights today’s fastest and slowest-moving markets.
Top 5 Fastest Markets
| Top 5 Slowest Markets
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Our take
Days on market is a key metric every agent should know. You’ll want to share this info with sellers and buyers. For sellers, use this intel to explain why their home may or may not sell as quickly as the home of their friend/relative who lives in one of the faster markets. For buyers, knowing how quickly homes are being purchased—as well as the typical sale prices of those properties—will give them a sense of the competition for available listings in their area.
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Schematics
The news that just missed the cut
Phoenix, AZ: https://bit.ly/46PAKTf
AI is real: Here’s what real estate pros need to know
Facts you need to know about VA Loans
10 smaller cities with booming tech scenes
What is a 5/1 ARM? And should your clients get one for a lower mortgage?
The best cities to buy a home this fall according to Realtor.com
Foundation Plans
Advice from James and David to win the day
As we said up top, Halloween marks the beginning of a very eventful next couple of months. It's tough to stay focused and close the year strong. Here are some tips on how to stay motivated and focused.
Keep your clients on track - Stay on top of your current clients to make sure your in-progress deals close smoothly. Deals can go off track very easily during the holidays. But also make sure you’re restocking your pipeline by prospecting. NEVER let your pipeline go dry!
Stay accountable - Even during the holidays, our team keeps each other accountable. We take the week of Thanksgiving and Christmas off, but other than that, our team keeps our Monday accountability meeting in the other weeks in November and December. It helps us stay on top of our game and prevents anything from slipping through the cracks.
Spend with intention - Sometimes you need to give yourself a little incentive to stay focused. Part of the reason we got into this business is to make the kind of money that allows us to lead the life we want. We believe in intentional spending. That means we believe in ruthlessly cutting back on expenses that don’t mean anything to us, while lavishly spending with intention on the things that are dear to us. Trust us, it keeps us hungry and motivated.
We’d like to hear from you. What do you think of our tips and what do you do to stay motivated during the holidays? Drop us a line.
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Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Mortgage News Daily
“Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.” — Charlie Munger
Thanks for reading, and we’ll see you back here on Friday!
- James and David
