Yikes! Look at these crazy rental prices

Plus, good perspective on interest rates

Grace Townsley
February 08, 2022

Source: WSJ

Hello, hello,

Today, David and I are heading over to see La Fin (“The End”) and we’re absolutely thrilled to be touring this property. It’s a truly incredible, one-of-a-kind Bel-Air mansion that just hit the market for a staggering $139,000,000.  If it sells at that price point, it will be one of the most pricey local real estate deals ever brokered. 

This place has it all: a chilled vodka tasting room, ventilated cigar room, display garage with rotating car tables. A stunning home like this, at this price point, really proves that the LA market is on fire. 

We’re not telling you this story to brag about what we’re doing (…okay, maybe just a tad) but to INSPIRE you! There is nothing quite like the excitement of looking for buyers for ultra-luxury properties. 

Do you dream of selling a multi-multi-million dollar home? How big is your biggest goal? Take it from us: door-knock and that door will be opened for you!

    -James

The cities where rental prices are bonkers

Source: Architectural Digest

Last week, we showed you why it’s better to buy than rent. Well, here’s more proof. In January, rent hit a new all-time high. The national average for a one-bed apartment is now $1,374 – up 12% since last year. 

If you think that number is wild, look at Texas. Rent increased 21.1% YoY in Austin, the fastest rent growth of any city in the Lone Star State. And for the first time, Boston might just overtake San Fran as the second-most expensive city in the country. 

Currently, these are the top 10 cities with the most expensive average one-bedroom apartment rentals:

  1. New York City - $3,260
  2. San Francisco - $2,850
  3. Boston - $2,720
  4. (tie) San Jose - $2,390
  5. (tie) Miami - $2,390
  6. Washington, DC - $2,250
  7. Los Angeles - $2,220
  8. Oakland - $2,100
  9. San Diego - $2,010
  10. Scottsdale, AZ - $1,940

Our take

Rent is, dare we say, abhor-rent right now. It doesn’t matter if you live in NYC or Omaha, rates are headed through the roof. So if your clients have the opportunity to buy, it’s always a good idea. Why pay someone else’s mortgage when you could be paying your own and building up equity? 

Why the metaverse is having its Big Bang

Source: Interesting Engineering

Sales of virtual land in the four biggest metaverse platforms (that’s Sandbox, Decentraland, Cryptovoxels, and Somnium) hit a staggering $501M in 2021. But this year, that already unbelievably high number is expected to double

Virtual property sales surged in November after Facebook rebranded to Meta and put their stamp of approval on the industry. And an increasing number of brands are vying for advertising space and retail storefronts, making virtual property in highly trafficked areas an even more lucrative buy for savvy investors.

Our take

It’s becoming clear that the metaverse is the future. While we want to move with this exciting trend, we also want to be careful. This industry has a steep learning curve. We’re doing our best to get up to speed, and we suggest you do too, because it’s always better to move with trends than against them.

Think interest rates are bad? Get perspective!

Source: The Mortgage Reports

It’s true that mortgage rates are going to go up. They’ll continue to increase as 2022 unfolds. But before your clients panic, let’s remember that it’s been a whole lot worse:

  • Back in the 1970s, the average mortgage rate hit a whopping 12.9%
  • By the 1980s, rates had spiked to an utterly painful 18.4%
  • The 1990s gave homeowners some relief as rates fell to a decade-low of 6.91%
  • From 2002 to 2006, when the market was surging, rates fluctuated from 5.88% to 6.57%
  • Just four years ago in 2018, rates were almost at 5%

Our take

As this walk down mortgage-rate memory lane shows, 2022’s rate increases are tiny by comparison. It’s all about perspective, people! We don’t expect rates to skyrocket anytime soon. The Fed wants to avoid raising rates and stirring a recession, so they’ll most likely keep rates low. But maybe not super low! Tell your buyers that these rates will not last. The time to buy is now!

Schematics 

The news that just missed the cut

Source: CNBC
  • You won’t believe these home profit statistics
  • Wrongful evictions cost one LA home flipper a shocking $3.5M
  • Buyers are flocking to this hidden gem suburb in Arizona
  • How to help your buyer find a home with good wifi
  • Got $1.9M? Check out these three beautiful California homes 

Foundation Plans

Advice from James and David to win the day

I recently had the chance to sit down for an interview with Joe (a.k.a. The Prep Agent) and we talked about what it takes for a new agent to become successful in this business. 

Here’s a quick rundown of the ground we covered: 

  1. You never know who you’re working with. This is a service-based industry, so give every single client your best effort. 
  2. Organization is key. The better you plan your time, the faster you can scale your business. Work smart, not hard!
  3. Find your niche. Every city has a niche market where there’s a ton of opportunity. Find yours and maximize it! 
  4. Get in front of people with your marketing. Pair complementary strategies, like social media and postcards or email updates and networking events. The more you’re in front of your ideal clients, the better!
  5. Be consistent. Repetition is good in everything you do, like marketing, door-knocking, and offering great service. Do it, and then do it again. 

Want more? Grab a cup of coffee and watch the whole interview here

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

Source: Rocket Mortgage

If you've made it this far in the newsletter, you're a real one. Can you hit us with a quick reply and tell us what podcasts/youtube channels you like? 

See you on Fridayyyy

- James and David

Subscribe to The Blueprint

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

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.