Market News January 12

Market Updates

Today's Market News:

Share Your Views of the VA Loan Process
Since their introduction in 1944, mortgages backed by the Department of Veterans Affairs (VA) have enabled millions of veterans and active-duty military to buy a home without a large down payment. While VA loans weren't always easy to underwrite, the process has seen major improvements over the past ten years.

Now, more improvements may be ahead, and we've been invited to share details of our experiences with these loans with the VA.

The VA is asking for public comments about their Local Requirements, also known as Minimum Property Requirements or MPRs. These include anything from required termite inspection reports to state-specific nuances. VA's official notice is here. Be sure to study the entire bulletin before visiting the Comments section.

To access the VA documents and add your comments, click here.

Considering that agents have few opportunities to comment on government-sponsored mortgage programs, I hope you'll take a few minutes to share your views and ideas. Comments must be posted on or before February 9, 2024. 1

Get Ready to Embrace These Social Media Trends While it may sound like a daunting task, it's important to periodically clean your database records. While some actions may be automatic, such as moving a prospect to a buyer or seller list, it's just as important to delete records with no future value.


Even though your trusty Facebook page may still pull in the prospects, social media has evolved into a fast-changing, unpredictable marketing space. To help you keep up this year, here are a few current trends.

Text-only posts are pulling crowds. While Twitter's switch to X hit some speed bumps, it's still the most popular text-based app with over 540 million users. Facebook users posting old-school text posts are pulling more viewers too. If you haven't set up accounts on newer text apps like Threads and Mastodon, grab your preferred username soon.

Longer videos are making a comeback. If you're tired of sprinting through your listings when filming video walk-throughs, here's some good news. Instead of squeezing a home's selling points into a 60-second video, you can go from two to five minutes. This is because Instagram Reels allows videos with up to 15-minute runtimes, and TikTok is considering a similar move.

Get ready to be the Agent with the Answers. Instead of Googling a question, more social media users are scrolling through social apps to find answers. It's another reason why longer videos are making a comeback, so you'll need to consider scripting some two- to three-minute videos to answer your prospects' FAQ online.

Photo dumps earn their own hashtag. These are sometimes known as carousels, and some successful agents have switched from a daily Instagram post to a twice-weekly photo dump. The #photodump hashtag's been seen on over 3.6 million Instagram posts. You can "dump" up to 10 photos with Instagram, and up to 35 on TikTok. Be sure to post an attention-grabbing photo first and post a mix of educational topics, listings and trending content.2

It's a Month for Dollars and Sense
January's not just a time for recovering from the holiday season...it's also Financial Wellness Month. Now is an ideal time to take stock of your own 2024 budget while providing your farm with tips for improving their own outlook.
Here are some strategies to share and remember:

Create a detailed budget. Figure out your income and expenses, and make sure all your bills are paid on time and you're setting aside money for savings. If you followed a budget last year, it's time to review and tweak if needed.

Pay off any outstanding debts. This will help you free up extra money for future spending and lessen your stress. Suggesting debt management to prospects will help them save for home ownership faster.

Set short and long-term financial goals. These are vital for lasting motivation and help teach your clients to review their spending frequently. Measurable goals are recommended, as tracking their progress is easier.

If you'd like assistance with turning prospects into homeowners this year, contact me so we can discuss the ways I can help you.3

The Migration Boom is Losing Steam
While the remote work lifestyle is here to stay, millions have returned to their offices. This caused a small, yet noticeable reduction in relocation moves during the last months of 2023. This is the first annual decline recorded by Redfin.


Another interesting factor is that popular relocation destinations have changed, with business-friendly states like Texas and Georgia seeing fewer new residents. From September 2022 to 2023, more people headed to:

  1. Sacramento, CA
  2. Las Vegas, NV
  3. North Port-Sarasota, FL
  4. Cape Coral, FL
  5. Salisbury, MD
Many who pulled up roots fled expensive areas for major lifestyle changes. For example, many left Los Angeles for Las Vegas and 50% cheaper housing prices. The cities seeing the most departures were:
  1. Los Angeles, CA
  2. San Francisco, CA
  3. New York City, NY
  4. Washington, DC
  5. Seattle, WA
While 2023 was brutal for many homebuyers, it's too early to predict if relocation numbers will rebound when rates and affordability improve.4

Should Hedge Funds Be Excluded from Our Market?

While there are several factors contributing to shortages of homes for sale, one isn't making as many headlines. Over the past years, hedge funds have been buying substantial numbers of single-family homes, driving up the prices by contributing to overall shortages.

Last year, Senator Jeff Merkley of Oregon and Representative Adam Smith of Washington introduced the End Hedge Fund Control of American Homes Act of 2023. This legislation was created to address the housing crisis in an already-tough market. Some cities have been particularly hard-hit: during 2021, hedge fund investors bought 42.8% of homes for sale in the Atlanta metro area and 38.8% in the Phoenix metro.

Rep. Smith described his family's own home ownership story in a recent press release.

"In 1971, my father was able to buy the house I grew up in for $15,000 on the salary he earned as a baggage handler at SeaTac Airport. That same house would cost nearly $500,000 today yet wages for workers like my father have not kept up."

Senator Merkley added: "It's time for Congress to put in place commonsense guardrails that ensure all families have a fair chance to buy or rent a decent home in their community at a price they can afford."

Housing statistics reveal the effect of hedge funds and housing availability. By mid-2022, hedge funds and institutional investors held around 574,000 single-family homes. During Q1 2023, hedge funds snapped up 27% of single-family homes.

If passed, the End Hedge Fund Control of American Homes Act would prohibit hedge funds from owning single-family homes after a 10-year phaseout. During the phaseout period, hedge fund operators will have to sell at least 10% of their single-family homes each year.

Click here to read a summary of the Act.4

Sources: 1mortgagenewsdaily.com, 2blog.hootsuite.com, 3holidaycalendar.io, 4redfin.com, 5nationalmortgageprofessional.com