What’s Happening In The Real Estate Market?
We are still in a supply-constrained market with more demand than supply, meaning in most US markets, it’s still a seller’s market.
The facts are the facts: there is not enough inventory of homes for sale to meet the demand of buyers. Check out your local market stats on this link – click here.
Why?
- Existing sellers will not trade a low-cost mortgage for a higher-cost one unless they have to (job change, death, divorce.) A boom for home improvement.
- Homeownership remains the #1 feature of the American dream. 74% to 78% of Americans say owning a home is still a dream.
- More than bonds, stocks, or gold real estate has been voted the best long-term investment.
Other thoughts?
- Consider the median home price metric in this market is meaningless. Median prices are distorted by the mix and repeat sales. In today’s housing market, we are selling more of the less expensive homes, thus driving down the median price. It doesn’t accurately reflect the value of each house.
- The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.
- Outdated models aren’t working in this market. You’ve got to dig 4 layers deeper to be of real service to your clients and prospects.
- For 50 years, the 30-year mortgage rate has moved in unison with the 10-Year treasury yield. The current 3.2 is historically high. It’s reasonable to assume that the spread and mortgage rates will retreat in the second half of the year, creating more affordability and demand in an already supply-constrained market.
Outdated models aren’t working in this market. You’ve got to dig 4 layers deeper to be of real service to your clients and prospects.
How do you grow in a volatile market with unit sales down from 23% to 31%?
Attract talent and recruit!
- We have a proven system – 10X ROI – the fundamentals are the fundamentals.
- It’s easy to make excuses.
- Yet we know it’s the pain of discipline vs. the pain of regret.
Let’s have NO REGRETS in our recruiting efforts this week.
TCF+ no excuses.
