We uncover the truth about home prices
Plus, all-time record for relocating buyers
Our VERY BEST tips
We decided to boil down our very best advice in just a few minutes. It’s all in the latest episode of our podcast, Rise Above the Ranks. We share the VERY BEST tips we’ve learned over the past two decades in the real estate business.
In the meantime, we’ll be off on Tuesday, July 4th celebrating the holiday, but we’ll be back in your inbox on Friday.
America is our adopted home, but we relish everything about it. This country has given us the chance to live out our dreams and pursue the life we’ve always wanted. We’re unbelievably grateful to live here.
Hope you all have a good holiday!
- James and David
Homes prices haven’t actually fallen that far
The typical U.S. home is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June. That’s according to Redfin’s latest market update. Here are other key takeaways:
Price declines have been shrinking for the last two months.
The median asking price of newly listed homes was $398,225, up 0.3% YoY.
Prices fell in 25 metros, with biggest drops in Austin, TX (-11%) and Las Vegas (-8.7%)
Prices rose most in Providence, RI (8.8%), Milwaukee (8.1%), and Miami (7.3%)
We’re glad to see this report. There are a lot of clickbait headlines out there that present misleading headlines on the same story. For example, you might see this exact story presented with the headline, “Home prices suffer drop from last year.” Well, that might be true, but it clearly isn’t the whole story. It’s not even close! This is why it’s always good to know the statistics, so you can help clear up any confusion or false expectations your clients might have.
New home sales trend up, existing home sales down
Sales of newly built, single-family homes in May increased by 12.2%, according to newly released data by the U.S. Department of Housing and the U.S. Census Bureau. Here’s what else the data revealed:
New home inventory was 31% of total inventory in May (historically it is 10%-15%)
There is only a 3-month supply of existing single-family homes on the market
Resales are down -20% YoY while new home sales are up 20% YoY
Home sales in the $200k-$300k range jumped 140% YoY
New home sales rose most in the Northeast (0.8%) and the South (1.6%), and fell most in the West (-20.7%) and Midwest (-2.5%)
This is excellent news, but we can’t get too crazy about it. We’re going through a massive inventory crisis right now. Even with this increase in new home construction, the inventory of new single-family homes in May is actually down -2.9% from last year. Direct your buyers to purchase newly-built homes because that’s where they will get the best deals. But we should all be prepared to deal with this inventory headache for a while.
Record number of homebuyers on the move
25.4% of homebuyers nationwide are looking to move to a different metro area. That’s the highest percentage on record, according to Redfin’s latest report.
Here are the top metros where people are moving and leaving:
Las Vegas, NV
Cape Coral, FL
San Francisco, CA
New York, NY
Los Angeles, CA
We are living in wild times! Homebuyers are now seeing the entire United States as an option. Use this information to create targeted marketing campaigns that reach these potential homebuyers. Likewise, advise sellers on appropriate pricing strategies based on the demand for homes in specific areas, both in cities where people are moving and where they’re leaving. Sure, some cities are losing residents, but the remaining population still needs to live somewhere. Appropriately market to them using this report too.
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Advice from James and David to win the day
As we mentioned up top, in our latest episode of our podcast, Rise Above the Ranks, we share the VERY BEST tips we’ve learned over the past two decades in the real estate business. These are the approaches that have helped us reach $1 billion in total sales. We cover a lot of territory in this episode, so we want to focus on just three things that often get overlooked.
Really listen to your clients - While the gift of gab is important, we believe the top agents are also great listeners. They don’t simply shoot from the hip and just talk. Instead, they ask questions and genuinely take in what their clients are saying. They talk only after they’ve really listened.
Thoroughly study the comps - Knowing the price per square foot of your market is just the first step. Really understand why a house sold for its price. The houses on a block may all have the same dimensions and lot size, but one home might have another feature that makes a key price difference. It’s important to know those intricacies to effectively advocate for your client, especially in a negotiation.
Get a mentor - One of the best aspects of our business is that we can observe how other people in our field operate. We can truly learn from the best. Find someone you trust and see if you can shadow them, ask them questions, and get to know their style. It’s really the best education you can get.
This episode is jam-packed with so many more tips. Listen, like, and share it!
Just in Case
Keep the latest industry data in your back pocket with today’s mortgage rates:
Source: Rocket Mortgage
Have a wonderful 4th of July, everyone!! We’ll be off on Tuesday to celebrate with our families too. We’ll see you next Friday.
- James and David