Home Prices Rise in the Midwest, Florida
Unexpectedly strong home sales at the start of this year reversed a sharp decline in home prices. Unpredictable mortgage rates are a main factor, cooling off from last fall's 7% and higher rates.
Home prices nationally rose 0.16% in February, when seasonally adjusted, which was the biggest one-month gain since May 2022. Home prices are now 2.6% below their peak last June.
Of the 50 largest U.S. markets, 39 saw home prices rise in February. That's a quick turnaround from November, when prices were falling in 48 of 50 markets.
Needless to say, your sellers may be happy or not, depending on your location. Miami saw the largest home price gains, along with Midwest markets in Ohio. Sellers in these cities saw property prices fall: Austin, Las Vegas, Salt Lake City, Seattle and San Francisco.1
Rates Aren't Everything: Builders Building, Millennials Shopping
While mortgage interest rates are a major factor for homebuyers, they're not the only factor that drives buyers to act. Large numbers of Millennials are just reaching their prime buying age this year, and even Generation Z (aged 18 to 26) are beginning to consider their options. In addition, the option to work remotely appears to be here to stay.
And while low inventory of existing homes for sale continues to encourage agent headaches, there's some good news: new home inventory is on the rise. During 2021 and 2022, residential builders were plagued by everything from skyrocketing prices for framing lumber, to a lack of skilled labor. However, 2023 is shaping up to be a better year for beleaguered builders.2
TikTok: More Than Dance Videos
Agents who already have a social presence on sites like Facebook and Instagram may think they have their territory covered.
But they're leaving out one potentially big demographic, which are the Generation Z buyers. While relatively few are planning to buy a home this year, it's a situation that could change quickly.
In addition to expanding your marketing past the more traditional techniques, you can opt to feature walk-through listings with a particular "wow factor" on TikTok. If you're concerned that video postings are still limited to the original 15 seconds, here's good news: you can post videos that run up to 60 seconds on the site.
Here's another reason to go TikTok: some of the most popular influencers are there. If only one of them spots and shares one of your listings, your audience may grow literally overnight. Influencers also have bigger pockets, and a few have purchased homes while still in their mid-20s, either for themselves or for investments.3
A Town Full of Diamonds in the Rough. Really.
While you probably won't be able to list any of these homes, the German town of Nördlingen has a unique, glittering appeal.
Not only was it built inside an asteroid crater; the asteroid's impact created tons of stone with tiny diamond fragments. This stone is called suevite, and the first villagers used it to construct a wall around the city which still stands today. More recently, scientists analyzed the stones and estimated the city to be home to 72,000 tons of diamond fragments.4
Circle Prospecting: What It Is, How It Works
When you land a new listing, it's time to plan some circle prospecting. This is a lead generation strategy where you contact the homeowners surrounding a specific listing. You can also "circle prospect" near a recently closed sale you managed, as this proves you can go from listing to sale.
Depending on your schedule and marketing budget, you can contact surrounding homeowners with postcards, calls and door-knocking. (Not all at one time, of course!) Invites to open houses are another strategy. Be sure not to make your circle too large, as the further away you go from your listing, the less relevant your news. Keeping your circle to 30-50 homes is ideal.
During your conversations with prospects, you can ask if they know anyone who might be moving to the neighborhood. If they don't, ask them if they're planning to move soon. If you get another no, offer to send them a monthly market report of the neighborhood's listings and sales, plus other data valuable to your territory – facts almost every homeowner wants to know.5
Sources: 1cnbc.com, 2blog.firstam, 3dot.la, 4archdaily.com, 5theclose.com
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