June 17, 2022
That’s one for the books!
We don’t want to brag (well, okay, maybe a little…) but our small team, Bond Street Partners, was just ranked #12 in the nation on the Real Trends + Tom Ferry The Thousand 2022 list for collectively closing more than $538,000,000 in transactions last year. This was the result of a monumental effort by every single member of our team. Only 63 real estate teams even made the list, so we’re truly honored to be counted among them.
We wanted to share this success with you because that’s our ultimate goal with this newsletter— to share the tips, tricks and insights that have helped us get to where we are today. We hope that our success leads to your success!
- James and David
On Wednesday, the Federal Reserve hiked rates another .75%. This tough-on-inflation move is the steepest rate adjustment since 1994. Here’s what to expect next:
If you’re working with buyers, use this information to negotiate a better price for them. You can leverage this info in your negotiations because the seller can see their pool of buyers shrinking with every interest rate hike. If you’re working with sellers, this information can help you set realistic expectations for them. They may be more open to accepting a lower offer now because they understand affordability is shrinking.
Realtor.com analyzed price trends in the top 100 largest metros to determine where home prices dropped the most between March 2021 and March 2022. Many of the biggest drops came in Rust Belt cities and major metros where prices spiked last year. While these numbers are promising for priced-out buyers, part of the dip in prices is due to growing inventory and fewer luxury homes on the market.
Check out the top 10 cities, ranked by percentages, where median prices dropped the most year-to-year:
We’ve been expecting this cool-off, and this is likely just the beginning. Prices will probably continue to level off, and we think that’s a good thing. With rising inflation and mortgage rates, coupled with the volatility in the stock market, this seems like a natural result.
With mortgage filings on the decline, some companies are struggling to keep their staff around. Compass just announced its plan to let go of 10% of its workforce and Redfin announced plans to release 8% of its employees. Some factors contributing to these widespread staffing reductions include the 22-year low demand in mortgages and the climbing interest rates we discussed earlier.
These companies expanded exceptionally fast while the market was heating up. Now, they’re having to contract just as fast. Unfortunately, that expansion and contraction is painful for the employees caught in the middle. It’s the reality of a cyclical economy. Industries grow and overheat, then cool and shrink. We’re not surprised by this news, but we do feel for the thousands of people who are without a job. However, the good news is, real estate is always hiring!
The news that just missed the cut
Advice from James and David to win the day
In honor of our RealTrends + Tom Ferry The Thousand 2022 ranking, it seems like a great time to share our best advice for creating a high-performance real estate team. Here are four steps, in order, to take when starting your own group:
There’s so much to learn about leading a real estate team. These tips barely scratch the surface! For more detailed info, check out this article.
You ask, James and David answer!
We’ll be back next week with another answer to a real reader question. Submit yours here!
Keep the latest industry data in your back pocket with today’s mortgage rates:
The Fed’s announcement will have an impact on the market. There’s no doubt about that. But it doesn’t have to impact your personal business. You’re still in the best career on the planet, closing killer deals, and making money moves. The only thing that can stop you is you! So get out there and make something happen!
Have a great, power-packed weekend. We believe in you!
- James and David
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