Record number of 65-year-olds will reshape the age milestone: WSJ

More than 11,000 people per day will reach 65 in 2024, and The Wall Street Journal explores the implications of a U.S. population that is quickly getting older

More Americans are reaching the milestone age of 65, and these people are redefining what 65 looks like in comparison to prior generations — with a raft of implications for American society. This is according to a recent story published by the The Wall Street Journal.

“Today’s 65-year-olds are redefining a milestone long associated with retirement parties and the end of productive years,” the article stated. “They are wealthier and by many measures, healthier, and expected to live another 20 years. A growing share are divorced. Many turn their focus to what they want in this next stage.”

More people reaching age 65 are looking ahead at what life will look like in the following decades, as opposed to prior generations of 65-year-olds who tended to look back on life and career milestones, according to Ken Dychtwald, CEO of consultancy Age Wave.

“They were winding down,” Dychtwald said of the parents and grandparents of today’s baby boomers.

According to Bipartisan Policy Center chief economist Jason Fichtner, 4.1 million Americans will turn 65 this year, a surge that is expected to continue through at least 2027.

“That is about 11,200 a day, compared with the 10,000 daily average from the previous decade,” Fichtner told the Journal.

In 2023, the share of older Americans who remained employed by the time they reached 65 had nearly doubled to 20%, according to December data from the Pew Research Center.

“Not only are older workers increasing in number, but their earning power has grown in recent decades. In 2022, the typical worker age 65 or older earned $22 per hour, up from $13 in 1987,” Pew reported. “Earnings for younger workers haven’t grown as much. As a result, the wage gap between older workers and those ages 25 to 64 has narrowed significantly.”

The driving factor behind a senior’s decision to remain in the workforce primarily comes down to addressing a monetary need, or continuing to work simply because they enjoy it, according to a representative of AARP. There is also a social component in which older workers want to continue to build connections and relationships.

There is also more wealth for the current cohort of 65-year-olds, according to the data.

“While significant disparities exist, the median net worth of those 65 to 74 was $410,000 in 2022, up from $282,270 in 2010 in inflation-adjusted 2022 dollars,” according to the Federal Reserve’s Survey of Consumer Finances.

That equates to a 45% increase in overall net worth, which can largely be attributed to rising home values and retirement account balances. But the gains did not materialize for all members of the baby boomer generation, with the Journal reporting that those 75 and older had a 13% gain in median net worth during the same period.

“Today’s 65-year-olds have more to spend now, but fewer have pensions that offer protected monthly income. They have to depend on savings, investments and Social Security to last, and cover expected rising caregiving costs,” according to Fichtner.

- Housing Wire

Minority homeownership gains ground, but disparities persist: NAR

Minority buyers continue to bear the brunt of affordability issues and limited inventory

The dream of homeownership is becoming more attainable for many Americans, with 10.5 million homeowners added between 2012 and 2022. Some racial minorities also witnessed a surge in their homeownership rates.

According to a new report from the National Association of Realtors (NAR) titled “A Snapshot of Race and Home Buying in America,” Asian and Hispanic Americans achieved historic heights in homeownership rates in 2022 of 63.3% and 51.1%, respectively. But the Black homeownership rate continues to lag far behind at 44.1%. Over the past decade, the gap between Black and white homeownership widened to 28 percentage points, NAR reported. 

“Minority homeownership gained ground this year, with Asian and Hispanic homeownership hitting record highs,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers.”

The overall U.S. homeownership rate increased from 63.9% in 2012 to 65.2% in 2022. But it fell slightly from 2021 (65.4%) due to higher mortgage rates and inventory constraints.

Over the past decade, Asian and Hispanic Americans experienced the largest gains in homeownership rates, while white homeownership has remained steady at about 70% since 2017.

Minority buyers, in particular, face difficulties in saving for a down payment, exacerbated by high rent prices and student loan debt. According to NAR, 41% of Black homebuyers reported having student loan debt, with the median amount of $46,000 representing a record high. Meanwhile, 29% of Hispanic homebuyers reported having student loan debt, with a median amount of $33,300.

“Potential buyers of color have a harder time saving for a down payment on a home, because they are paying more of their monthly income toward rent,” Lautz said. “Even among successful home buyers, minorities have a higher amount of student debt, the biggest expense that holds back saving, along with rent.”

Furthermore, Black and Hispanic homebuyers encounter additional challenges in securing mortgages as they experience higher rates of denial and less favorable terms compared to their white and Asian counterparts.

According to data from the Home Mortgage Disclosure Act, 26% of Black respondents reported having a mortgage application denied, compared to 22% of Hispanic respondents, 16% of white respondents and 15% of Asian respondents. 

Additionally, 21% of loans originated in 2022 for Hispanic buyers included mortgage rates of 6% or more. This share stood at 20% for Black borrowers, 18% for white borrowers and 15% for Asian borrowers. On average, the mortgage rate for Black and Hispanic borrowers stood at 4.9%, while it hovered at 4.8% for white borrowers and 4.6% for Asian borrowers. 

Even after purchasing a home, disparities persist, with minority homeowners more likely to spend a larger portion of their income on housing compared to white homeowners.

In Colorado, for example, 41% of Black homeowners spend more than 30% of their income on housing, while only 24% of white homeowners do. In New York, 37% of Hispanic and Asian homeowners spend more than 30% of their income on housing, compared to 25% of white homeowners.

“The impacts of housing affordability and limited inventory are more extreme for minority buyers, because more than half are first-time buyers who must rely on down payment sources beyond gained housing equity,” Lautz said. 

The racial snapshot report drew its data from NAR’s 2023 Profile of Home Buyers and Sellers report to shed light on the demographics of homebuyers, their motivations, the types of properties they purchase and their financial profiles.

- Housing Wire

Build More Fika Into Your Routine

BY NIKKI BEAUCHAMP

A deeply valued Swedish tradition called “fika,” which involves taking a break to enjoy coffee and snacks while putting aside work and devices to connect with others, caught my eye earlier this month in a Wall Street Journal article.

“Swedish employees and their managers say the cultural tradition helps drive employee well-being, productivity and innovation by clearing the mind and fostering togetherness,” The WSJ reports.

This ritual, far from being a mere coffee break, is a deliberate pause designed to foster connection and well-being. My thoughts immediately drifted back to my pre-real estate days startup world, reminiscing about the cherished lunch meetings and weekly happy hours that significantly contributed to team bonding.

Let’s explore this concept through the dual lenses of real estate dynamics and corporate culture and extend its application within the office and in nurturing relationships with colleagues from other firms and clients.

Cultivating a welcoming environment for clients and enhancing team collaboration

The pressure to perform in the high-stakes, fast-moving world of real estate and corporate offices can often overshadow the need for genuine connections.

Fika offers a structured yet relaxed opportunity for real estate professionals to step away from their busy schedules, engage in informal conversations, and share insights with colleagues and clients.

This practice breaks down formal barriers, making fostering a culture of openness and collaboration easier. For real estate agents whose success relies heavily on strong personal relationships, incorporating fika into client meetings can add a personal touch and make clients feel valued and understood on a deeper level.

Boosting morale and enhancing client satisfaction

The well-being of employees directly impacts their interactions with clients. By integrating fika — putting the work aside, having coffee, breaking bread — into daily routines, real estate firms can signal to their employees and clients alike that they value well-being and positive relationships.

This attention to creating a supportive and caring environment can lead to increased job satisfaction among employees and enhance client satisfaction, as clients are more likely to feel at ease and confident in their dealings with happy, well-adjusted agents.

Fostering open communication for better client relationships

Fika‘s relaxed setting encourages open dialogue, allowing employees to share feedback and ideas that could lead to improved client services and innovative solutions.

This culture of transparency can extend to client interactions, where agents feel more comfortable sharing insights and clients feel heard and valued. Such open lines of communication are vital for building trust and long-term relationships in the competitive real estate market.

Attracting clients and talent with a strong corporate culture

Today’s clients and top talent are drawn to organizations that offer more than just transactions or job opportunities; they seek environments that prioritize well-being, community and a positive culture.

Adopting a fika-inspired approach can significantly enhance a firm’s appeal and showcase a commitment to creating meaningful connections and a supportive environment. This can be particularly advantageous for real estate firms looking to differentiate themselves in a crowded market and attract clients who value a personalized, thoughtful approach to real estate transactions.

Adopting fika within real estate and corporate environments transcends the concept of mere coffee breaks; it represents a strategic approach to building a culture that cherishes connections, well-being and open communication.

By embracing this tradition, real estate professionals can foster a more collaborative and satisfied workforce and enhance their relationships with clients, offering a more personalized and engaging experience.

Fika, therefore, emerges not just as a pause from work but as a fundamental building block for nurturing a vibrant and positive culture that benefits employees, clients and the organization as a whole.

Nikki Beauchamp is an advisor with Sotheby’s International Realty in New York City. Connect with her on LinkedIn.

West + Main Homes Founder + CEO Named on the SP200 Top Most Influential People in Real Estate List

We are so proud to see Stacie Perrault Staub make her debut on T360’s SP200 list!

“Staub leads West + Main Homes, which has approximately 420 agents who do approximately $1.4 billion in annual sales. The firm, which she co-founded in 2017, has offices in Colorado, Oklahoma, Oregon, Minnesota, and North Carolina,” said the T3 executive panel.

“T3 determines the rankings by each leader’s power within the industry — how much capital could they access or leverage themselves, their ownership stake, if any, in the companies they lead, the size and importance of the companies they lead, their place in their company’s org chart, their personal influence within the industry, the size and production of the companies they lead. All of these factors are considered when ranking leaders, and, as such, the exercise requires a ton of analysis and, unavoidably, some subjectivity.”

Learn more about the SP200 here.

Here’s why 2024 will be 'the year of hunkering down'

Mikaela Arroyo of John Burns Research says homebuyers will prioritize affordability over 'bells and whistles' and accept smaller homes that meet their needs.

by AJ LaTrace for Real Estate News

Key points:

• Buyers are willing to give up extra space and fancy tech in order to purchase a house they can actually afford.

• New construction will likely keep getting smaller into next year as builders ramp up deliveries.

• The “sweet spot” for interest rates appears to be between 5.5% and 6%.

While interest rates have dropped significantly in just the last couple of weeks, it's still anyone's guess what kind of economic environment homebuyers and sellers will be facing next year. 

Despite the uncertainty, John Burns Research and Consulting has published a list of 24 trends they predict for 2024 in new construction, home design and consumer behavior.

The main theme is that 2024 will be "the year of hunkering down," Mikaela Arroyo, VP and chief of staff for the New Home Trends Institute at John Burns Consulting, told Real Estate News. "We think next year is going to be very cost-focused, with how unaffordable homes are, and then you add in the economic ups and downs and the fact that it's an election year."

'Bells and whistles' take a back seat

Unlike the pandemic era, when having extra space and state-of-the-art filtration systems was a top priority, 2024 will see buyers becoming much more pragmatic. "A lot of people are really focusing back on the basics … and talking a little bit less about some of those bells and whistles," Arroyo said.

This means forgoing a big yard, an extra room for fitness and the home automation that was so popular just a year or two ago. Instead, the typical buyer will be looking to trim the fat from their home search. 

"We have some people even dropping the garage and a lot of people removing formal dining," she explained. "So what spaces can you completely remove from the house to make it more affordable?"

Home sizes will keep shrinking

The size of the typical new home has been decreasing in the last year or so as builders try to keep prices down and keep inventory moving, and this will continue in 2024, Arroyo predicts. 

This is especially important for younger and first-time buyers without substantial cash savings or home equity.

"For younger consumers, they actually felt that new construction was a better value relative to resale, and their reasoning was with all of the incentives and rate buydowns that builders are offering, you can get a new home at a reasonable price to a resale home," Arroyo said. "Maybe it's on a slightly smaller lot size, but it has all the features they care about."

Cautious consumers seeking rates of 6% or lower

Right now, buyers are still cautious about making a home purchase, particularly as interest rates remain volatile. High rates have a big financial impact, but there's a psychological one too: Consumers are "afraid of buying at the wrong time," Arroyo said. 

Agents can help educate buyers and provide emotional guidance — "being a counselor has become a bigger part of the job," Arroyo said — but consumers still have deeply rooted perspectives on where rates should be, considering the lower interest rate environment of the last 20 years.

Arroyo said her team has surveyed consumers about the highest mortgage interest rate they'd be willing to accept and what they believe is the historically normal rate.

"The number that keeps bubbling to the top, it's about 5.5% to 6%," Arroyo said. "That's the number that they're willing to go to. That's the number they now think is historically normal. That seems to be the sweet spot for rates where the consumer is looking."

Twixmas is the Perfect Time to Claim Email Amnesty

Plus 3 Additional Ways to Start the New Year Fresh + Clean

Happy Twixmas, Kids!

First of all, let's unpack this precious time between Christmas and New Year's...when Real Estate pros are left wondering, what the heck do I do with myself and all of this unclaimed time?!

Yes, you can (and definitely should) follow the lead of your friends who are on salary by kicking back a little, relaxing, regrouping and spending a little extra time with your littles + loved ones...but you also have to admit, those of us who live from commission check to commission check get a little antsy when we don't have doors to open and contracts to write.

A lot of economists and industry forecasters are predicting a quick and early start to the Spring Selling Season, and, depending on your market, you might be starting to feel an underlying buzz starting to bubble up below the surface...an anticipatory vibe that will grow louder and louder as January approaches and all those folks who said, "I'm going to wait until next year" start to want to make moves.

If so (and even if you haven't been doing this long enough to feel a market shift coming long before it does) I'd encourage you to do a few things now to prepare for what will likely be a hectic and fast-moving Q1.

1. Declare Email Amnesty.

Yes, you heard that right - starting the year with an empty inbox is one of the best things that you can do for yourself and your sanity. Just like you should be wrapping up your business and closing out your books before the last day of the year, you also need to wipe the slate clean so that you can jump in and move forward with fresh goals, new clients and an uncluttered mindset.

If you are a gmail person, this is as simple as selecting your ENTIRE inbox and hitting ARCHIVE. You'll be amazed at how simple this one act is - and you'll see, those unread waiting for response emails will come back around IF THEY NEED TO. If someone needs something from you, they will chase you up...and everything else can go. (Please note, I prefer to archive rather than delete, which gets everything out of my way, but is still findable and recoverable should a records or compliance situation arise.)

2. Close out your Browers and Restart Your Laptop 

You've likely RESET and RESTARTED your machine many times throughout the year, but if you're like me...you might also use your open brower tabs as a to-do list of sorts. In order to REALLY reset, you need to X out of those lovely little lifesavers and placeholders that are staring at you every second that you are on your computer, and RESTART without re-opening those tabs. Don't worry, the same as with your email, the important stuff will resurface, and you'll be able to tackle tasks and internet errands without the surrounding interruptions (I'm looking at you, Facebook and Amazon!)

3. Clean off your Desktop (Both Digital and IRL) 

Are you a person that constantly screenshots, saves both images and documents to your Desktop, and also has a tough time throwing away everything from old paid invoices to holiday cards? Twixmas is your time. Select all and delete. Take that recycle bin sitting next to your desk and rapid sort EVERYTHING on your working surface into either recycling or a drawer where you keep things forever. Everything else can (and should) go in the trash in order to create space for the things that 2024 will bring - hopefully filled with prosperity and joy.

4. Schedule Out your Repeat Events (and your Days Off) Through 2024 

Whether you use a paper planner, a google calendar - or a combo of both, the New Year is full of empty white squares of possibility - at least so far! Take some time to reserve those things that add in a positive way to your life - that might be your brokerage's weekly meetings and classes, your time with an accountabilibuddy (if you don't have one of these you NEED to find one ASAP!), your pilates schedule, your book club...and all of the other meetings and appointments that keep you in great mental and physical health, as well as your planned days off!Once you've completed the above steps, take a minute to realize how good it all feels - you're organized, you're ready and your business is prepared to thrive.

Happy New Year!

West + Main Homes to Oversee Sales for Amacon’s Condo Project in Downtown Denver

Denver’s independently owned and operated boutique brokerage founded by Colorado natives, Stacie Staub and Madeline Linder of West + Main Homes will oversee the sales program for what will be Denver’s largest condominium development since 2009.

Read the full post on Mile High CRE.

Nestled at the crossroads of 18th and Glenarm, Canadian-based real estate development and construction firm Amacon’s monumental condos will reshape Denver’s skyline. Showcasing two towering structures, one will stand at 38 stories and the other at 32 stories.

“We approach this endeavor with great confidence and genuine excitement as we bring our expertise to the U.S., fully committed to creating a lasting and transformative impact in the heart of the Mile-High City,” said Stephanie Babineau, vice president of marketing and sales at Amacon.

Amacon’s commitment to placemaking will transform 18th & Glenarm into a people-centered hub, fostering connections, interactions, and a vibrant sense of community. This innovative 461-unit development will reshape the area, elevating it into a new, dynamic neighborhood with enhanced walkability and a rich mix of residential, commercial, and retail spaces.

“Amacon’s decision to entrust a local boutique brokerage over a larger chain underscores their commitment to conducting business in Denver,” said Stacie Staub, CEO of West + Main Homes. “We are honored to be part of transformative housing developments like this that facilitate our city’s unique and organic growth. We eagerly anticipate how this development will pave the way for Upper Downtown Denver’s future success.”

Davis Partnership Architects is the architect of record for the project.

In alignment with Denver’s urban renaissance, Amacon is addressing the rising interest in mixed-use development, combining residential, commercial, and retail spaces. This trend stimulates economic growth, job creation, increasing property values, and positively impacting local communities. Amacon’s extensive research into the needs of Denver’s demographic underscores its commitment to creating thoughtful and inclusive amenity spaces, appealing to a diverse buyer base.

The development of the two towers at 18th & Glenarm has been under construction since the spring of 2022 with completion scheduled for 2025.

West+ Main is an independently owned and operated boutique real estate brokerage specializing in residential and commercial properties in Colorado, Oklahoma, Minnesota, North Carolina, and Oregon. Currently West+ Main has approximately 500 real estate agents, 320 of these agents are in its Denver offices. West + Main’s sales team has sold over 1.4 billion in real estate and over 2,500 sales transactions earning them the 2023 Power 500 Broker Award and Top Workplaces as ranked by the Denver Post.

To stay updated on project news and how to be the first to purchase a condo, please visit amacon.com/denver.

Related Links

• How To Find the Right Buyer’s Agent for Your Home Purchase

• Affordable Homeownership Strategies for Gen Z

• The Perks of Selling Your House When Inventory Is Low

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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7 massive mistakes most real estate agents are making right now

Uncertainty breeds error, and mistakes cause clients to find new agents. Avoid these agent blunders, and you'll find all kinds of opportunity, says industry expert Jimmy Burgess.

The best way to learn is from the mistakes of others, and right now, many agents are making critical mistakes that are leading to business destruction. Here’s how you can avoid their mistakes and fill in the holes they’re creating when committing these errors.  

1. Waiting

Despite buyers and sellers needing a professional agent more than ever, most agents are waiting for “something” right now. They’re waiting for interest rates to come down. They’re waiting until after the first of the year to ramp up their marketing. They’re waiting for the market to improve. They just keep waiting.

I can’t think of a single time in my business when waiting for anything outperformed taking consistent action. Whatever you might be waiting for, stop waiting. Potential buyers and sellers need your knowledge and professionalism right now. Take action, and the results will follow.

2. Making excuses

Many agents are making excuses instead of focusing on adding value to the marketplace. They make excuses about their lack of prospecting calls because of how busy they say they are. They make excuses about not hosting open houses because they only had three people show up to their last open house. They make the excuse that the reason they do not have more closings is escalated interest rates.

Despite all the excuses most agents are making, every market has agents who are thriving and having the best year of their careers.

Are you making excuses or making things happen?

Go against the grain. Instead of making excuses, why not devote yourself to adding more value to the marketplace than you ever have? Why not decide to host more open houses than you’ve ever hosted? Why not geographically farm more households than ever before?

Somebody is going to have their best year ever, why not you?

3. Talking more than they’re listening

Most agents are talking too much and selling too hard. A better plan is to ask questions that provide you with an understanding of the needs and desires of your prospects.

Here are a few questions that can help identify their needs and wants:

• What’s the biggest concern you have about the homebuying process?

• If you could wave a wand and purchase a home on the ideal day for you and your family, what day would that be?

• Which would you say is more important to you, maximizing your sales price or having your home sold by a certain date?

Asking the right questions and then providing value based on their answers is the winning formula. Listening more and talking less will always put you in a position to serve your clients at the highest level possible.

4. Worrying about things they can’t control

Control what you can control. You can’t control how many transactions there will be in your local market this year, but you can control the number of real estate-related conversations you have with potential buyers and sellers.

You can’t control whether interest rates go up or down this year, but you can control how many open houses you host. Ultimately, you can’t control the positive or negative outcome of the Sitzer | Burnett commission trial, but you can control the amount of value-added video content you produce and distribute.

Worrying less isn’t about not being aware of the market or potential changes in the market. It’s about not allowing fear of what might happen to keep you from adding as much value as possible to the marketplace in the present.

The problem is that most agents focus on what might happen in the future instead of what they can make happen today. Focus on your attitude. Focus on your effort. When you focus on the right things, results change.

5. Planning too much

Planning is good. But there comes a time when planning or talking about what you are going to do has to move to action. Are you talking about the neighborhood you plan to geographically farm, or are you farming the neighborhood? Are you planning to ramp up your marketing efforts after the first of the year, or are you producing more content than ever right now?

Build a plan, but don’t forget to work your plan. The second you initiate action, momentum begins to build. Momentum builds energy, and energy attracts business.

6. Not keeping in touch

One of the biggest mistakes I’ve made in the past has been assuming potential buyers and sellers were thinking about me as much as I was thinking about them. I can remember a specific buyer prospect who told me they would be interested in buying in about six months. I told him I would keep in touch and send properties that came on the market as I saw ones that fit the criteria we discussed.

In the first couple of weeks, I emailed him a few properties but didn’t hear back from him. I assumed he just wasn’t ready yet, so I didn’t call him and put him on my calendar to call in three months. When I called him three months later, he told me he actually saw an open house sign the previous weekend, and he was so excited that he just gone under contract on that house.

Lesson learned. Had I kept in touch with check-in phone calls, connected him with a lender and continued to send properties via email, odds are, I would have sold him a home.

Like I was, most agents assume hot prospects they spoke with are deals they will get. You can’t assume anything. You must provide value and stay connected with your prospects. If you don’t, deals will be missed. Recommit yourself to stay connected with your prospects, and the number of transactions you close will increase.

7. Surrounding themselves with negative or inactive agents

You will drift toward the attitudes and activity levels of the people you spend the most time with. It’s not hard to find negative or inactive agents in the current market environment. Misery loves company, and many agents are falling into the trap of surrounding themselves with agents who would rather talk about how tough things are than do the work needed to succeed.

Choose the people you spend time with wisely. By surrounding yourself with positive, hard-working, client-focused agents, you will be in the position to serve at the highest level possible.

Stop waiting and making excuses. Listen to the needs of your potential prospects, and control what you can control. Develop a plan, and work your plan. Keep in touch with all your prospects, and surround yourself with the best people possible.

The world needs what you have. You owe it to yourself and everyone you’ve been entrusted to serve to become the best version of yourself possible. This is the market — and now is the time.

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Housing sector is showing signs of picking back up: Powell

Housing sector is showing signs of picking back up: Powell 

Powell said the Fed will "proceed carefully" as whether to tighten further or hold the policy rate constant

In a hawkish tone, Jerome Powell said that Federal Reserve (Fed) officials are prepared to raise the federal funds rate further and hold it at high levels until they are confident that inflation is moving sustainably down to the 2% target. And that’s unclear at this point.

There are some sources of pressure on U.S. prices — among them is the housing market, Powell said Friday morning during an economic policy symposium in Jackson Hole, Wyoming. 

“So far this year, GDP [gross domestic product] growth has come in above expectations and above its longer-run trend, and recent readings on consumer spending have been especially robust,” Powell said. 

“In addition, after decelerating sharply over the past 18 months, the housing sector is showing signs of picking back up. Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy.”

Powell said that the effects of monetary policy became apparent soon after liftoff in the housing sector. Mortgage rates doubled in 2022, causing housing starts and sales to fall and house price growth to plummet. 

In fact, mortgage rates kept an upward trend in 2023, following the Fed’s moves to combat persistent inflation. On Friday, the 30-year fixed mortgage rate was 7.37% at Mortgage News Daily, the highest in over two decades. Economists see rates potentially reaching the 8% level. 

Regarding the housing services inflation, Powell said it lagged the monetary tightening. According to him, the main concern here is rents, which have only begun to slow down. “We will continue to watch the market rent data closely for a signal of the upside and downside risks to housing services inflation,” he said. 

Other components of inflation show different trends.

Core goods inflation has fallen sharply due to tighter monetary policy and the slow unwinding of supply and demand dislocations. Less sensitive to the Fed moves, nonhousing services, which account for over half of the core PCE and include items such as health care and transportation, have moved sideways since liftoff, Powell said. 

The labor market continues to rebalance, with improved supply and moderated demand. This rebalancing has eased wage pressures. The Fed expects the trend to continue, but evidence that the tightness in the labor market is no longer easing could also call for a monetary policy response, Powell said. 

Committed to the 2% target 

The core PCE inflation index, closely watched by the Fed officials, peaked at 5.4% on a 12-month basis in February 2022 and declined gradually to 4.3% in July 2023. 

The lower monthly readings in June and July of 2023 were welcome but only “the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said.

“We can’t yet know the extent to which these lower readings will continue or where underlying inflation will settle over coming quarters. Twelve-month core inflation is still elevated, and there is substantial further ground to cover to get back to price stability.”

The Fed, however, remains committed to the 2% inflation target, Powell said. It’s challenging to know when such a stance has been achieved in real-time, he remarked. 

Despite Powell seeing the current rate as restrictive to the economy, he can’t identify with certainty the neutral rate of interest – the rate at which monetary policy is neither stimulating nor restricting economic growth – which brings uncertainty about how high rates should be. In addition, it’s not clear the duration of the lags with which rate hikes affect economic activity and inflation. 

“As is often the case, we are navigating by the stars under cloudy skies,” Powell said. “We will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data.”  

Subscribe to Housing Wire.

2023 DMAR Member Profile | Report by NAR

The National Association of REALTORS® has released reports on who members are and the business they are conducting dating back more than five decades. Each year the report is released in varying and unique circumstances.

While the report provides timelines of how experiences and transactions have changed, it is also important to remember it is a snapshot of that period of time. The last year, 2022, was a divided year in the real estate market.

At the beginning of 2022, inventory levels dropped to the lowest recorded since 1999 as home buyers entered the market at a frenzied pace to lock in historically low interest rates. By Autumn of 2022, mortgage interest rates topped seven percent, putting a damper on real estate sales activity. Home buyers who had searched for a home in Spring and were outbid, were suddenly pushed to the sidelines due to housing affordability concerns.

Despite the rise in mortgage interest rates, home prices continued to rise, pricing out even more potential consumers. While there has been a slight increase in housing inventory, at affordable price points buyers have struggled to find a home. This years’ report reflects the experience of REALTORS® through a roller coaster of a year and into a more balanced market in 2023.

In 2022, the rise of new members in the National Association of REALTORS® continued to increase. Membership grew from 1.56 million at the end of 2021 to 1.58 million at the end of 2022. The median years of experience in real estate increased to 11 years. Those with two years of experience declined from 25 percent to 17 percent, while those with 16 years or more experience increased to 42 percent from 39 percent. Despite the churn and unique real estate market conditions, looking forward, 76 percent of REALTORS® are very certain they will remain in the market for two more years. Limited inventory continues to plague many housing markets in the U.S. Thirty-two percent of members who practice as brokerage specialists cited the lack of housing inventory was holding back clients from completing a transaction, while 18 percent cited housing affordability.

Due to the strong demand for housing in the first half of 2022, the typical member had 12 transaction sides. This is the same number as in 2021. The typical sales volume increased from $2.6 million to $3.4 million in 2022 as home prices increased throughout 2022. The median gross income of REALTORS® increased to $56,400 from $54,300 in 2021. New members entering the field can be noted by the differences in income by experience and function. Fifty-two percent of members who have two years or less experience made less than $10,000 in 2022 compared to 42 percent of members with more than 16 years of experience who made more than $100,000 in the same time period. REALTORS® with 16 years of experience or more had a median gross income of $80,700 compared to REALTORS® with 2 years of experience or less that had a median gross income of $9,600. REALTORS® have been impacted by higher inflation in the last year as total expenses increased to $8,210 from $6,250 in 2021. The typical member was an independent contractor affiliated with an independent company catering to local markets.

REALTORS® frequently have had careers in other fields prior to real estate, the most common being in sales and retail, followed by management, business, and financial professions. Only six percent indicated that real estate is their first career. The majority of members were women homeowners with a college education. The median age of REALTORS® was 60 in the 2023 survey.

REALTORS® consistently are ahead of the curve when it comes to technology. It is clear technology can assist home buyers when inventory is limited and buyers are moving further distances. While there are older technologies that are embraced on a daily basis, like e-mail, social media, and GPS there are also new emerging technologies such as Photofy and the use of drones. The majority of members have their own website where they promote their own property listings, but many also post information about the buying and selling process to help consumers who may just be in the research part of the process.

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The National Association of Realtors® (NAR) has released reports on who members are and the business they are conducting dating back more than five decades. Each year the report is released in varying and unique circumstances. While the report provides timelines of how experiences and transactions have changed, it is also important to remember it is a snapshot of that period of time. Read More

5 reasons top agents don't worry about commission lawsuits

OPINION via Inman News

Although the bombshell commission lawsuits are scary, Inman contributor Chase Williams writes, it's time to focus on the things you can control and move forward

Lawsuits can be concerning. Lawsuits asking for enormous amounts of money can be downright scary. Lawsuits that threaten an entire industry and a way of living for millions that have been given class-action status can be Texas Chainsaw Massacre-levels of terrifying.

As the Moehrl and Sitzer/Burnett cases continue to be a hot topic of discussion in the industry, let’s get back to doing what successful people always do: Focusing energy on only the things we can control. Here are a few tips to put you back in control and ease your mind, because, after all, real estate agents need a good night’s sleep, too.

1. They know their worth and aren’t afraid to ask for it

The vast majority of consumers, 86 percent, actually, use a professional real estate agent to help them navigate both buying and selling. Top agents know that this is primarily the case because those same consumers find massive value in their expertise and service. Although a lawsuit “might” change how they are compensated, professionals are never worried about whether they will be compensated. So breathe.

Having said that, top agents are also not afraid to pivot if factors outside of their control threaten their livelihood. We’ve seen those who pivot time after time — in the face of industry changes, consumer preferences changing, and even a global pandemic — continue to thrive. This will be no different.

The only reason to worry is if you are unwilling to change or pivot. If you are a mouse and someone moves your cheese, go and find it, or you might starve to death. It’s still your choice.

2. They have the power to walk away

Top agents understand the foundation of their success and their business, and, not to burst anyone’s bubble, but it isn’t commission. It’s client acquisition and conversion. It’s finding buyers and sellers. Period.

By staying focused on lead generating and finding buyers and sellers in their spheres of influence and beyond, top agents are always filling their pipeline, which leads to always having an abundance of clients to work with. This is the secret to walking away from those who don’t value your service or time. 

Real estate agents work with clients they can’t stand because they don’t have enough clients. This is true for clients not willing to compensate you for the value you bring. When you have a full pipeline, walking away from them will be easy. Let someone else work for free.

3. They’ve never allowed someone to negotiate commission on their behalf

List to last. We’ve all heard this statement in real estate. It might be truer now than ever, considering the claims and intentions of these lawsuits. The truth is that listing agents have been negotiating their commission and commission for the buyer’s agent for a long time.

I don’t know about you, but I want full control over what I want to work for in this business. I certainly don’t want to leave it up to another agent. Why would they care as much about how much I’m paid as I would? They don’t.

Neither do many sellers. The buyer agent doesn’t work for them. It’s partly why homesellers offering less commission on the buy side than what they are willing to pay the listing agent is commonplace in many markets.

If you want to be able to decide what you get paid and have no worries around the current litigation threatening that, start listing homes. “But Chase, I love working with buyers.” I get it. If you also love being paid for what you do, learn to love working with sellers. You’ll regain control and make more dollars per hour, too. Win-win.

4. They know exactly what to do and say to get paid what they are worth

They are polished and practiced in handling commission questions and objections. They have proven talk tracks, objection handlers and powerful questions to ask back. It’s not only experience; although she is the mother of skill, it’s also a commitment to great training and practice.

Top agents are learning-based. They take the time to be well-trained and take the time to practice those skills through role play with peers, with coaches and leaders, and even in preparation for appointments. 

The game always changes. These lawsuits have some wondering if it will change again in a big way. When it does, top agents go back to “school” and learn the new skills they need to add onto their strong fundamentals. Stay learning-based or risk flunking out of the business.

5. They provide a service that both buyer and seller are excited to pay for 

Top agents understand that clients want an amazing experience. They want a full-service broker who makes all aspects of the process easier and more enjoyable. Top agents are true brokers of every part of the buying and selling journey.

Fortunately for them, many agents don’t understand this or are unwilling to create this experience. They either act transactionally or have poor communication during the process. Another leg up for top agents and another reason asking to be paid what they are worth is easier than you think.

Don’t just put the client’s needs first (yes, do that); go the extra mile and put their entire experience first. You’ll do more business, and they will be happy to pay for that level of service, regardless of how they pay you.

Focus on what you can control, give that maximum effort, provide maximum value and the commission dollars will always find you, regardless of how they find you. I don’t believe any lawsuit can disrupt that law of free enterprise in the long run.

Chase Williams is the co-founder of NW Wealthbuilders and growth leader for the Keller Williams Northwest Region. Connect with him on Facebook or LinkedIn.

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Homebuying trends and motivations in the LGBTQ+ community

A new report helps agents better understand the preferences, drivers and challenges for LGBTQ+ buyers.

The LGBTQ+ community, like all underserved groups, has specific needs — and faces unique challenges — when it comes to homeownership. A new report sheds light on some of those needs and barriers, and notes how the homeownership experience for LGBTQ+ people may be changing.

The third-annual Journey to Homeownership report from the LGBTQ+ Real Estate Alliance, which offers a sweeping view of the real estate experience for LGBTQ+ people, provides real estate professionals with a wide range of insights into the community of LGBTQ+ buyers, sellers and homeowners. Top takeaways from the report include the main drivers for purchasing a home, motivations and considerations, and a demographic overview of the community.

Formalizing relationships leads to homebuying

The ability of couples to "formalize" relationships — resulting in part from the legalization of same-sex marriage on a national level, which occurred less than a decade ago — tends to lead to home purchases, particularly among lesbian women. The report, which surveyed more than 400 LGBTQ+ Real Estate Alliance members, found that 58.4% of lesbians said being in a formal relationship was a top reason for buying their first home, compared to 53.8% of straight couples and 34.3% of gay men.

Ryan Weyandt, CEO of the LGBTQ+ Real Estate Alliance, noted that the increasing number of same-sex marriages since the Supreme Court's ruling in 2015 has led to more LGBTQ+ people becoming parents, another common driver for homeownership or upsizing to a new home. About 16% of survey respondents said having children or growing their families was a top reason for buying their second home. Not surprisingly, schools become a higher priority in that second home purchase.

"We now have much greater insight into how relationships, engagements and marriage are having such a powerful impact on homeownership and where our community chooses to live," Weyandt said, noting that same-sex marriage definitely plays a role in securing long-term financial security through homeownership.

Motivations for choosing a first home

At the start of their careers, members of the LGBTQ+ community are more likely to opt for an urban setting, according to the report. 

Nearly 70% of gay men in the survey reported that the first place they lived on their own was in an urban center, compared to 45.5% of lesbians and 42.4% of straight respondents. That was likely due to the greater importance gay men placed on living in an area with nightlife and a dating/social scene compared to lesbian and straight respondents. 

The No. 1 motivation for both gay men and straight people when choosing a home at the start of their professional career was job opportunities. For lesbians, the top motivation was housing affordability. 

As a group, LGBTQ+ buyers were more likely to purchase their first home in an urban area — 46.6% of LGBTQ+ buyers did so, compared to 32.8% of straight buyers — while a nearly equal percentage of straight buyers (47.8%) chose the suburbs when making their first purchase. Notably, the preference to remain in an urban setting was much stronger for gay men. Lesbians were the most likely of all respondents to buy their first home in the suburbs.

By the time buyers had purchased their third home, however, the urban-suburban split among the LGBTQ+ community was much smaller. 

Where housing discrimination shows up in the homebuying process

In the past, real estate agents were most often cited as the top contributor to discrimination during the homebuying process, according to the study. While that number has decreased, 19.8% of respondents indicated that agents were the leading source of discrimination. 

But a higher percentage pointed to required forms and discriminatory sellers as primary culprits.

Forms and other legal documents that don't accurately represent the life experiences of LGBTQ+ people were cited as a leading cause of discrimination 20.3% of the time, followed closely by sellers, at 20.1%. 

The number of LGBTQ+ Real Estate Association members who said they believe discrimination against LGBTQ+ potential homebuyers has increased over the last three years went up somewhat significantly, with 21% of respondents perceiving an increase in discrimination vs. 17.9% a year ago. 

The impact of anti-LGBTQ+ legislation

The introduction of more than 340 anti-LGBTQ+ bills in various state legislatures in 2023 is also having an impact on homebuying decisions, according to alliance members quoted in the report.

Amy West, a LGBTQ+ Real Estate Alliance member in Durham, North Carolina, helped three couples move into the state last year from Florida. She said they listed the politics around anti-LGBTQ+ legislation as a top reason for moving. Other homebuyers mentioned in the report also noted they are closely watching the political process and wondering whether they still feel safe or if they need to move.

"Almost every LGBTQ person I'm having dinner with or talking to or whatever has in the back of their mind: What is my Plan B?" said Bob McCranie, a real estate agent from Dallas, Texas, who launched a program to help those thinking about leaving the state. He noted that some LGBTQ+ people want to stay and fight the legislation, but he expects to see more migration out of states that have similar anti-LGBTQ+ legislation.

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West + Main Homes Ranks 274 in the Mega 1000

The US’s 1000 largest brokerages accounted for nearly 60 percent of total residential sales volume in 2021

LADERA RANCH, CALIF. (PRWEB) APRIL 28, 2022

T3 Sixty, a real estate management consulting and analytics firm, has released its 2022 Mega 1000, an annual ranking of the nation’s 1,000 largest brokerages by sales volume, transaction sides and agent count. The report reveals that this cohort of brokerages accounted for nearly 60 percent of the nation’s residential sales volume in 2021.

The 59.2 percent of the nation’s total sales volume that the U.S.’s 1,000 largest brokerages accounted for in 2021 represents a growth of 13.4 percent in market share from the year previous (market share is determined using Mega 1000 data and existing home sales data as reported by NAR). That’s approximately double the next highest year-over-year growth in Mega 1000 market share since the report debuted in 2018, when the Mega 1000 market share stood at 44.9 percent.

Companies such as Compass, which moved from No. 3 in 2021 to No. 1 in this report, and eXp Realty, which grew sales volume by 116.2 percent from 2020 to 2021 and No. 4, achieved some of the largest growth over this period. Heavyweights Realogy Brokerage Group and HomeServices of America, No. 2 and No. 3, respectively, also anchored the nation’s largest brokerages. With eXp Realty’s leap, 2021 saw four brokerages top the $100 billion sales volume threshold.

“We are beyond thrilled to continue to move up the Mega 1000 ranks,” said West + Main Homes CEO and Co-Founder Stacie Staub. “As always, we have our agents, our clients, and every single person who continues to trust and support West + Main with their Real Estate business.”

”From Number 970 in 2019 to Number 274 this year, we’re so excited to break into the Top 300,” said Company COO and Co-Founder Madeline Linder. “Our staff continues to create systems that scale, so that we can love on our people every day and give them everything they need to attract, nurture and deliver during transactions. It’s such an honor to lead this group.”

More on Market Share

The sales volume market share of the nation’s 10 largest brokerages at 23.6 percent in 2021 jumped from 18.8 percent in 2020. The growth in market share represents an increasing concentration of sales volume at the nation’s largest brokerages.

The 2021 sales volume market share of the nation’s 100 largest brokerages, at 36.9 percent, grew from 31 percent in 2020. Overall, the market share of the Mega 1000 rose from 52.2 percent in 2020 to 59.2 percent in 2021 reflecting growth in sales volume from $2 trillion to 2.7 trillion in one year.

The market share of transaction sides followed a similar pattern. In 2021, the top 10 brokerages accounted for 14.9 percent of transaction sides, up from 12.1 in 2020. The largest 1000 brokerages accounted for 44.2 percent of transactions in 2021, an increase from 41.2 percent in 2020.

Since 2018, two brokerages have accounted for a significant share of the overall gain in market share among the top 10. Compass, founded in 2012, saw as increase in sales volume of $208.7 billion over the period while eXp, founded in 2009, logged an increase of $136.3 billion. Together, these two brokerages accounted for nearly 60 percent of the $577.2 billion increase in sales volume of the top 10 brokerages.

To access the full 2022 Mega 1000, visit realestatealmanac.com.

About the Mega 1000

The Mega 1000, which analyzes the residential real estate industry’s largest brokerage companies, is the fifth section of the Real Estate Almanac, a comprehensive annual compendium on the residential real estate industry. The Almanac includes a ranking of real estate’s most powerful leaders (SP 200), a list of its largest MLSs and Realtor associations (ORE 200), a list of the largest technology companies (Tech 500), a list of the nation’s largest holding companies, franchise brands and public companies (Enterprise 20), and a list of the nation’s 1,000 largest brokerages (Mega 1000). For more, visit realestatealmanac.com.

About T3 Sixty

T3 Sixty is the leading management consultancy in the residential real estate industry with business units in brokerage, technology, mergers and acquisitions, and organized real estate. The group also provides software and data, extensive research and reports, executive search and event management services. For more information, visit t360.com.

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West + Main Ranks in Top 100 Indie Brokerages - Real Trends

The RealTrends 500, now in its 34th year, remains the undisputed leading report ranking the performance of the top residential real estate brokerage firms.

See the entire list here.

"West + Main Homes broke into the Top 500 overall for both sides and volume in 2022, as well as entry into the Billionaire’s Club, which is a super cool achievement,” said Company CEO Stacie Staub. “But the distinction we’re most proud of is ranking #90 for Independently-owned brokerages nationwide.”

"All of these numbers, of course, are a tangible testament to the hard work and dedication of each of our agents, and to our staff’s commitment to supporting them,” said Staub. "Every dollar in volume and each transaction side represents real people in the communities that we serve, and the places that they call home. We’re so honored to help folks build generational wealth and to be part of making dreams come true.”

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West + Main Ranks in Top 500 Power Brokers

In a year that went from feast to famine, Power Brokers navigated an economic decline—along with the ramifications of the Federal Reserve’s ensuing response—to persevere as best possible, but not without feeling the impact. While some struggled, others seized the opportunity to gain ground.

The data for the Top 1,000 firms featured in RISMedia’s 35th Annual Power Broker Report reveal a more than $220B decrease in collective sales volume over 2021, based on over 670,000 fewer transactions.

These significant decreases in overall sales volume and transactions reflect the rollercoaster ride that was the 2022 residential real estate market. Competition intensified among the industry’s largest players in a year that started out strong, thanks to the remnants of the pandemic boom, then dropped off at year-end as the Fed focused on reeling in inflation with interest-rate hikes beginning last March.

Amidst this tumultuous economic environment, the industry’s largest brokerage operators took measures to steady the ship and stay afloat.

Crisis for some, opportunity for others
As the market fluctuated, residential brokerage firms turned to an array of cost-cutting measures.

Lingering signs of the pandemic boom
While losses mounted virtually across the board, the Top 500 Power Brokers continued to witness some of the effects of 2021’s pandemic boom, such as scores of new entrants to the residential real estate field, ready to capitalize on a seemingly easy opportunity. So while collective sales volume and transactions declined in 2022, agent count continued to rise with a total increase of more than 40,000 agents among the Top 1,000 brokerage firms.

Another pandemic-era phenomenon also continued to make its mark in 2022: increasing home prices. The average home price among the Top 1,000 firms increased to $518,043 over the cohort’s 2021 average home price of $492,836.

“When mortgage rates go up, prices usually go down, but we are in a market now where there are not enough homes to sell, and that’s keeping prices high,” said Brown Harris Stevens CEO Bess Freedman in an interview with RISMedia. “However, these are the moments when an agent’s true value shines. People depend on them more than ever to make adjustments and find the best path forward.” 

A five-year perspective
RISMedia’s 2023 Power Broker Report is based on the results of its longstanding annual survey of the nation’s leading brokerage firms. Companies are primarily ranked according to sales volume and secondarily by transaction. In this special preview of RISMedia’s online Power Broker Directory, RISMedia Premier members can see who topped the charts in an unprecedented year, and also view five years’ worth of year-over-year statistics for the Top 500 firms.

West + Main’s RISMedia Power Broker ranking - 2021 -> 2023

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7 Ways that Agents Can Collab to Build Their Own Business and Those of Others

When I was thinking about writing this piece for Real Trends, I was really surprised to find that the term "collab" actually isn't super common...because it's been in my inbox, on my mind, and in our storefronts for the last few years, and I just love the idea of it...collab, collaborating, collaboration.

So, I looked it up...here's what google said:

col·lab

/kəˈlab/

Learn to pronounce

INFORMAL

noun

1. a collaboration.

   "her collab with Eminem is not at all surprising"

verb

1. collaborate on a project.

   "Adam also wants to collab with Ed Sheeran who is his labelmate"
   
   col·lab

   /kəˈlab/

   Learn to pronounce

   INFORMAL

   noun

   1. a collaboration.

      "her collab with Eminem is not at all surprising"

   verb

2. collaborate on a project.

   "Adam also wants to collab with Ed Sheeran who is his labelmate"
   
   
   Soooo, now I feel super cool, because, I mean, if Eminem and Ed Sheeran are doing it, it must be relevant, yes?
   
   So, how do Real Estate agents collab with their communities to do good, build relationships and also grow their business?
   
   Here are some ideas:
   
   1. Collaborate with your favorite lender, title rep, insurance broker or inspector to host an event.
   
   This collab has several obvious benefits: share the cost and stress of hosting a class or event, double the invites, and spread the relationships and trust around. 
   
   2. Collab with a local business owner on a mail campaign.
   
   Think about plant shops, small bookstores, cafes, restaurants or food trucks. Send a postcard to your sphere or farm with valuable info AND a discount to a locally-owned business...and make sure that they collect the postcards (which already have the recipient's info on them) so that you can follow up...and they can, too. Totally easy win/win!
   
   3.Give back. Non-profits love to collab!
   
   Sponsor a gift basket or auction item for an upcoming event, organize a volunteer day or simply raise money for an organization that is near and dear to your heart...and don't forget to document and share, all of these activities help spread the word so that other folks can learn about the cause and get involved!
   
   4. Collaborate with your colleagues
   
   Believe it or not, not all Real Estate agents are cut-throat salespeople fighting for the spot at the top of the leaderboard. 
   
   Most Realtors are kind, generous and collaborative...find like-minded people in your brokerage or community and share the energy! Put together a mastermind group, accountability team or approach someone to be your partner in Real Estate...whether you're just starting to climb the ladder or looking to take an actual vacation, the work is often easier (and your income will grow) when you're not in it alone. 
   
   5. Share your space.
   
   If you're paying for a storefront or office or even just have a cubicle included in your monthly desk fees, is there a way that you can take advantage of that space? Partner with someone that works opposite hours as you do, allow a local artist to display their work for sale, or find a way to split expenses and time so that the cost is maximized!
   
   6. Guest blog...or partner with guest bloggers.
   
   Publishing content is awesome...but it's even better when someone actually reads what you've written. Whether you're looking to build your SEO and organic followers or if you're hustling to get backlinks from popular news sources, it's cool to collab (just make sure to partner with legit people/companies)
   
   7. Collab with your clients.
   
   No matter where you get most of your business, I'm willing to bet that you attract clients who are like you...and because you're entrepreneurial in nature (most agents are!) there's a good chance that some of your clients are, as well. How can you support their business, career efforts or passion projects while they support yours? Can you source your closing gifts, marketing materials, business services and even basic needs and wants while at the same time helping your clients' ventures? Super win/win!
   
   As you're settling into this new normal market, make sure to keep an eye out for potential collab opportunities, and you can be cool like Eminen and Ed Sheeran, too.
   
   Stacie Staub is the Co-Founder and CEO of West + Main Homes and thrives on collaboration. 

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This piece was originally published by Real Trends.

December chill could thaw out by Spring for a ‘boring’ year

If mortgage rates continue to decline, we could see a more normal spring selling season, according to a Zillow economist.

Key points:

• Home sales are starting to climb up, suggesting a more typical spring.

• The percentage of homes sold above list price dropped to the lowest level since 2020, a sign that buyers and sellers are more accurately gauging the market.

• Zillow’s December report estimates some markets are seeing year-over-year price declines.

One sign that the real estate market was unsustainably overheated in recent years was the large number of homes that sold for above the list price. The frenzy of bidding wars and multiple offers over asking may now be giving way to a “boring” — and more predictable — year ahead.

The latest monthly housing report from Zillow found that the share of homes sold above list price fell to just under 28% in December. That’s the lowest rate since June 2020, a time when the world was coming out of the most restrictive pandemic shutdowns.

Redfin reported similar findings, putting the share of homes selling above list price at 23% in December. By comparison, the share approached 60% at times last spring, according to Redfin data.

Sellers also seem to be adjusting. In October the percentage of homes with price reductions was around 23%; by December it was down to 14.6%, according to Redfin.

With sale prices now landing closer to the list price, it appears that active buyers and sellers are adapting to the current market, which could mean a less chaotic spring season is coming.

“The housing market ended 2022 in a deep freeze, but there are some green shoots pushing up,” said Jeff Tucker, senior economist at Zillow. “The recent thaw in mortgage rates has begun to attract some renewed interest from buyers, and home sales are climbing again compared to last year. If rates continue to march down this spring and sellers return in seasonal force, the housing market just might get to have a normal — maybe even boring — year.”

Another indicator of a more typical year ahead? The increase in days on market. In December, it took about 30 days to sell a home, up from 13 days in December 2021. Homes are still selling more quickly than they were in the pre-pandemic days of December 2019, when it took about 43 days for a house to sell, but buyers are getting some breathing room.

Tucker expects that days on market will drop down a bit from current levels, something that traditionally happens in the spring. He also expects sellers to be rolling out higher prices if they see the demand is back.

“I think sellers are cautiously optimistic that they can fetch a higher price this spring and that will bring out some more aggressive pricing,” Tucker said in an email. “A lot of sellers know the spring is the best time to sell, and so they’ve waited for this opportunity to get the best price when they sell. 

Historically, he said the share of homes sold above list price bottoms out in early February before bidding wars ramp up by March. 

“I expect something like that to play out this spring, and the main difference will likely just be a smaller ramp up in above-list sales — that is, some improvement for sellers compared to the current midwinter doldrums, but much less of a seller’s market than we saw in spring 2021 or 2022,” Tucker said.

Indeed, homes in the hottest markets in 2021 are now taking the longest to sell. That’s particularly true in western metros: In Austin, homes are selling in 68 days; Las Vegas is at 57 days, and Phoenix comes in at 55 days, according to the Zillow report. On the flip side, the most affordable markets have now become the hottest, with homes in the Hartford, Cincinnati, Kansas City and Columbus markets selling in two weeks or less.

The slowdown in days on market has come with cooling prices. Zillow estimates prices dropped 0.2% between November and December. Year-over-year, prices were up 8.4%, although the report noted some markets are starting to see year-over-year drops, including Austin (down 4.2%) and San Francisco (down 2%).

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3 things for agents to remove from their to-do lists

And a few things to add to your list as well!

Happy New Year! How is your 2023 to-do list going so far?

Whether you’re already back in the office or sitting back waiting for the spring market to heat up, there is no doubt that you’ve been inundated with pressures to a build business plan, increase your sales, grow your brand, lose some weight or start/stop/do more/do less of whatever it is.

It’s easy to get confused and overwhelmed, but we’re here for you with what to prioritize and what not to.

What to clear from your to-do list

Here are a few things that you might want to erase from that to-do list, simply because they aren’t worth doing (no matter what that super-charming and persistent salesperson has been telling you!)

1. Don’t waste time and money building a custom website

If you love and have proven that you have the long-term commitment, budget, time and systems to invest in online leads, then a custom site might pay off in the long run. But spending your precious time building a custom website for your sales business, or worse, paying someone to do this for you is so 2008.

Unfortunately, most agents that attempt to create an online space for themselves from scratch end up spending way too much, never finishing the project, and failing at everything from SEO to IDX integration. 

2. Don’t pay a brokerage that isn’t giving you what you need

I hear it all the time, “I’m at XY brokerage but I hate their branding/don’t understand their tools/feel like I’m on my own.” 

Stop.

You’re paying desk fees, a split, a franchise fee, and possibly even transaction management, insurance and marketing fees to hang your license. Are you getting your money’s worth? Are you using the resources you’re investing in? Do you feel like you’re a part of something and belong?

You should be able to answer yes to most or even all of these questions, or you might not be at the right agency for you.

3. Don’t keep buying new CRMs thinking they are going to sell real estate for you

This is such a distraction. I don’t care how sophisticated your new CRM promises to be, or how much you’re paying for it, it’s going to take a lot of time to set up. It’s going to take a lot of time to learn how to use it. And it’s still not going to be a magic wand that you wave that brings business to you.

Sure, there are a ton of bright and shiny, AI-based, automated promises that are so tempting, but there is not a CRM on the planet that replaces you.

At the end of the day, it’s your work, your time, your heart and your passion for helping your clients. Stop trying to find it and just dig in. Track your efforts and activities, calculate your ROI on everything you do, and focus on the things that repeatedly pay off.

What to add to your to-do list

Ok, that’s a few things to remove from your to-do list. If you know me at all, or if you’ve been reading my RealTrends series for the last few months, you know that I love to leave you with a few positives and action items. So, here you go:

Do keep focusing on your people 

Be a resource, solve problems, be the hero or even just the amazing supporting character in someone’s story.

Do tell the truth 

It’s not ever the right time for everyone to buy or sell property, but it’s always the right time for someone. 

Do decide who you are going to be this year, and go for it

Are you going to increase your business, focus on your brand recognition, become a healthier/happier you or all of the above? 

I believe in you, and I cannot wait to see what you do with the rest of your 2023. 

Stacie Staub is the Co-Founder and CEO of West + Main Homes.

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What if Your Clients Have a Dangerous Pet?

Listing agents and their clients have a duty to ensure everyone’s safety on the property.

Coming across an aggressive dog or unfriendly cat is par for the course when taking clients on property tours. But Karen Abram, RENE, an agent with Keller Williams Realty in Calabasas, Calif., wasn’t prepared to come face-to-face with a wolf at a recent showing.

Abram and her buyers initially mistook the animal for a large dog in the corner of the living room. The sellers, who were present at the showing, explained that they rescued the wolf from the wild, which raised the hairs on the back of Abram’s neck. The listing agent hadn’t mentioned anything to Abram about a wild animal—let alone any kind of pet—in the home. Abram and her clients left immediately, and she called the listing agent to report the situation. The listing agent, Abram says, was unaware of the wolf. “I nearly had a heart attack,” Abram adds. “That was really scary and could have been really dangerous.”

People keep all kinds of unusual animals at home, which can put real estate agents and consumers at risk during a property sale. It’s a common danger in rural communities, where farms and ranches often house wild turkeys, pigs, birds and horses, for example. Snakes and alligators also are fairly common pets in some areas of the country, but even poorly behaved dogs and cats can pose a threat. While sellers are responsible for ensuring everyone’s safety on their property, there are situations where the listing agent can be held liable as well. So, when does a seller’s pets become your problem?

Get a free dog safety tip sheet(link is external) you can also share with consumers. Remember to staple your business card to it, or add your name if you post it on social media.

There are many stories of real estate professionals being attacked by animals on the job:

• A bulldog injured a real estate agent who was showing a property in Canada in 2020. The agent discovered she wasn’t the only real estate pro wo be attacked by the dog.

• In December 2019, an agent in Waco, Texas, and her clients were attacked by two pit bulls when the agent opened the garage where the sellers were keeping the dogs. The agent and clients required surgery for their injuries.

• An agent in Northern California who was selling her own home kept five goats boarded on the property. Despite the agent's warning, buyers opened the gate to pet the goats and were trampled by the animals.

Safety education and proper communication are key to navigating encounters with dangerous animals in the real estate process, says Charlie Lee, senior counsel and director of legal affairs at the National Association of REALTORS®. Agents should consider the safety precautions they’ll need to take if they accept a listing with a dangerous pet, he says.

“If the listing agent is aware of the pets in a home or on the property, they must let the showing agent know—especially if the animal is dangerous,” Lee says. “At that point, the onus is on the showing agent to proceed at their own risk. Agents should advise sellers to remove potentially dangerous animals from the property. If that isn’t possible, they need to ensure that everyone who enters is aware of the animal's presence.”

Listing agents should include a warning in their online listing about the presence of a dangerous animal and post notes throughout the home to alert visitors to the animal’s location. Susan Peer, an agent with Keller Williams Realty in West Des Moines, Iowa, even posted to the door photos of the garage, where she kept her four large dogs quarantined during showings, when she was selling her own home. “We also put up baby gates and posted ‘do not open door’ signs,” she says. “We put in the listing that the dogs would be removed for second showings.”

If your sellers have an animal that could potentially scare off buyers, you might advise them to get a pet license or permit to demonstrate responsible pet ownership, Lee says. “If the broker is aware of local laws regarding potentially dangerous animals, they can assure that the sellers are in compliance,” he adds. If aggressive pets cannot be kenneled or properly restrained, you may not want to list the property until you have a long-term solution for the animals to be removed.

Keep reading at nar.realtor

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Yes, your buyer can bid on that $1M home

For the first time ever, the baseline conforming loan limit topped $1 million in high-cost areas, giving buyers more purchase options.

Key points:

• For most of the country, the conforming loan limit is $726,200, up from $647,200 in 2022.

• Buyers can borrow above the limit through a jumbo loan, but that usually comes with additional fees and stricter qualifying standards.

• Zillow estimates the limit increase means more than two million homes across the country will no longer require a jumbo loan.

A big increase in the conforming loan limit is providing more flexibility for agents who work with buyers in high-priced areas.

For the first time ever, the baseline conforming loan limit topped $1 million in high-cost areas, which means that more than two million homes across the country no longer require a jumbo loan, according to a Zillow analysis.

Avoiding a jumbo loan can be important to buyers, as they can be harder to qualify for and often come with additional fees and larger down payments. The increased limit gives buyers more options in this sluggish market, particularly in areas where the homes for sale are often priced near jumbo loan territory, said Nicole Bachaud, a senior economist at Zillow.

“We have a way slower housing market than we saw a year ago,” Bachaud said. “We’re in a position now where buyers have more negotiating power. We’re seeing homes sitting on the market longer… This can be a time where buyers can make things work if they are right on that line.”

The Federal Housing Finance Agency announced the changes in November, and they went into effect in January. The conforming loan limit is now $1,089,300 in some high-cost markets. For the majority of the country, the conforming rate is $726,200 in 2023, an increase of $79,000 from last year.

The FHFA used its home price index to determine the new limits, noting that prices increased 12.2%, on average, between the third quarters of 2021 and 2022.

Bachaud said that for some buyers who wanted to avoid a jumbo loan, they’ll now have access to more potential inventory, which could mean more opportunities for agents to help get them across the finish line. 

“Getting a mortgage in December and getting a mortgage in January can really make it or break it for buyers,” Bachaud said. “This can certainly be a time to refresh that home buying search for agents and buyers.”

The high-cost markets are generally concentrated on the West and East Coasts. Typical home values around San Francisco, New York City and coastal Massachusetts already bump up against (or exceed) the new limit in some areas. According to Zillow’s analysis, nearly 85% of the homes in Nantucket County in Massachusetts, for example, would likely require a jumbo loan that starts at over $1 million. Other expensive regions that will benefit from the increased limit include resort towns in Wyoming and Colorado.

Across the country, particularly in the Midwest and the South, are many areas with home values well below the jumbo loan limit of $726,200, so the typical buyer in those regions will see little impact from the change.

Keep reading at Real Estate News.

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