- The Blueprint
- Top 10 housing markets to watch in 2023
Top 10 housing markets to watch in 2023
Plus, the year of the condo?
Let’s talk lead generation
This is going to be one of the most important parts of our agents’ day-to-day work heading into 2023. We are heading into a balanced market, so we know our agents can take this opportunity to provide real value for our clients. As we prepare for the new year, we are having our team take these steps:
Make a list of buyers who were hesitant to buy because of rates
Call all old clients who bought a home in the last two years
Prepare a competitive market analysis of homes that were listed for sale and then taken off the market
The key to success is preparation. There’s plenty of opportunity out there, and it’s going to be up to you to make this year your best yet. Be a wealth of information for all your clients, past, present, and future!
By the way, there will be no newsletter Friday, so we’ll see you back here next Tuesday.
- James and David
Condo prices not dropping as quickly
Point2 released a report last week that shows condo prices have only decreased 4.4% YoY, while home prices have dropped 8.6% YoY. Condo prices grew in 33 large cities, whereas single-family home prices rose in only 10 markets.
Here are the 10 metros with the biggest condo price increases from Q2 to Q4 2022:
Oklahoma City, OK (+79%)
Tampa, FL (+40%)
San Antonio, TX (+29%)
Louisville, KY (+14%)
Nashville-Davidson, TN (+14%)
Milwaukee, WI (+13%)
Cleveland, OH (+12%)
Buffalo, NY (+12%)
Bakersfield, CA (+12%)
Chesapeake, VA (+11%)
If you haven’t dealt with a condo yet, this is a great opportunity to learn about them. There are nuances that make them different from single-family homes, but the transaction is the same. As people get more creative and open their minds to different types of ownership, it will be very useful to share this type of data with them. Look up the condos in your area, and see how you can jump on this trend.
Homebuilders using rate buydowns as incentives
More than 75% of home builders are offering mortgage rate buydowns to attract more homebuyers and sweeten deals, according to new research from John Burns Real Estate Consulting. Almost one-third of homebuilders surveyed said they are buying down the full 30-year mortgage for their buyers by up to 2%.
This would mean that on a median-priced home of $450,000 in a city like Phoenix, homebuilders are fronting between $22,500 and $27,000 to reduce their buyer's mortgage by 1% or 2% from the current average rate of 6.33%.
This is great to know! If you know a buyer on the hunt for a new home, these types of incentives might entice them to act. Survey your area to see if any home builders are providing such incentives, or you might see if you can use this information to convince them to give your clients a deal.
10 top-performing metros to watch in 2023
NAR Chief Economist Lawrence Yun projected that, in 2023, home sales will drop nationally by around 6.8% and mortgage rates will settle around 5.7%. NAR selected the top 10 real estate markets to watch next year based on how they compared to the national average on economic indicators like job growth, people teleworking, and renters who can afford median-sized homes.
Here are the 10 markets expected to be top performers in 2023:
Atlanta-Sandy Springs-Marietta, GA
Dallas-Fort Worth-Arlington, TX
Charleston-North Charleston, SC
San Antonio-New Braunfels, TX
These cities were hot during the pandemic boom, and now it looks like they could be staples for the housing market in general. We know cities like Los Angeles and New York are less affected by macroeconomic conditions, and more southern cities bringing in home buyers increases the overall health of the market. We love to see it! If you work in one of these markets, this should give you extra motivation to spend the next couple weeks planning your goals for 2023.
The news that just missed the cut
Advice from James and David to win the day
As we wrap up 2022, we're all looking ahead to our goals for the new year. We always say that agents need to get creative with how they present listings. This is why we love this idea from Robert Mack: he suggests creating a case study presentation of your past listings to showcase your expertise and ability as an agent.
Here's how to create a case study presentation to grow your listings:
Create a process for your listing services. You probably already have a process for getting a home ready to list where you meet with clients to get a sense of what they're looking for and professionally cleaning or staging the property. Outline this process and write down your unique listing service process.
Collect data and document the process. This is how you'll show prospective clients that they should choose you as their agent. Collect before and after photos of previous listings, client testimonials, and the list and sale prices of homes you've sold.
Put it all together. After you've clearly outlined your listing process and compiled data, it's time to take all of this information and package it beautifully. This can be a simple flyer or brochure, or you can create a video to send to potential clients. The most important thing is to show potential clients evidence of your success as an agent and how you can do the same for them
Want to learn more about creating a listing case study presentation? Click to read the article.
You ask, James and David answer!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
That's all for this edition of The Blueprint! Remember, there's no newsletter on Friday, so we'll see you again one week from today for our 2022 wrap-up!
Have a great week, and happy holidays!
- James and David
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