November 16, 2021
Okay, we see you Bezos! The Amazon founder, and second-richest man alive, just picked up a sprawling Hawaiian estate complete with a private white sand beach and 700-square-foot circular pool. With the ocean on one side and dormant lava fields on the other, now that’s what we call “prime” real estate.
Who is flush with cash, eager to buy, and just booked a ticket to the states? Thousands of vaccinated visitors from 33 countries around the world. With the United States travel ban lifted as of November 8th, agents in the hottest luxury markets—think Miami, NYC, and LA—are booked solid with showings for foreign buyers. This rush of demand is expected to drive prices up even further in these popular cities.
Many of these buyers have been hesitant to buy sight unseen. From April 2020 to March 2021, foreign purchases of U.S. homes dropped 27%. This is the first chance buyers have had to tour stateside properties in 20 months. Their return to the market could generate tens of billions of dollars in additional sales next year.
This is a great opportunity to reach back out to your potential sellers and tell them: It's time to get off the fence and put your property out there! There is so much pent-up demand just about to be unleashed on the market. We’re seeing a whole new massive group of people on the hunt for fresh listings.
There’s no question your sellers have had it pretty good lately! In Q3, prices rose in 99% of the 183 markets tracked by the National Association of Realtors. Of these markets, 78% saw staggering double-digit price increases. In plain terms, price increases have made the average home $50,300 more expensive this year.
For your buyers, there is a light at the end of the tunnel. While prices in most metros aren’t expected to drop, their ascent does appear to be slowing. With interest rates on their way up and inventory growing, rising prices will likely level off in 2022.
The forcasted price drop off isn’t a bad thing. Really, it’s a sign of a self-correcting market healthy enough to adjust without crashing! When you see prices lag, look for ways to create your own opportunity. When you see other agents give up, that’s your chance to work harder, smarter, and faster.
Step aside Zillow, there’s a new kid on the block. You may know CoStar as “The Artist Formerly Focused on Commercial Real Estate." Lately the company has been staking claim on the residential market in a major way. Here’s a brief history of what’s gone down.
Who will win the fight between CoStar and Zillow? Let’s watch and find out.
As an agent, you’ve got to be willing to keep up with the times. The growth of these mega companies proves technology is the future of real estate. Stay relevant and stay aware of what these big players are doing. Your clients will be using these tech platforms, so use them to your advantage too!
To be a successful agent, you’ve got to be one-part charming, one-part killer closer, and one-part business savvy. We can’t help your charm factor, but we can give you a few business tips!
Keep the latest industry data in your back pocket with today’s mortgage rates:
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Don't listen to the noise in your head telling you that you can't do something, it's nonsense. We believe in you, now let’s get it done!
-James and David
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The Blueprint is the free newsletter that keeps you up-to-date on the world of residential real estate. Powered by James Harris & David Parnes