Podcast - 9/29/23
Join us for this week's episode where we dive into two hot real estate topics:
Are More Homes Coming onto the Market?
Curious about the current state of the housing market? Wondering if it's the right time to list your home? Well, you're in for some exciting insights! Tune in to find out!
Why Is Housing Inventory So Low?
Ever wonder why it's so challenging to find your dream home right now? The housing inventory shortage is a complex issue with both short-term and long-term factors at play. We'll break it down for you and dispel some common myths about today's real estate market. Don't miss this eye-opening discussion!
Whether you're selling, buying, or both, our podcast has valuable insights just for you!
Plus, don't forget our House of the Week in Frederick - a great brick front cape cod, 4-bedroom, 2-full baths with screened-in porch, well maintained and close to downtown Frederick!
#RealEstatePodcast #HousingMarket #HomeInventory #MarketTrends #HouseOfTheWeek"
Jay Day and the Day Home Team of Real Estate Teams with our weekly real estate podcast going with inventory this week. Jay?
Yeah, let's sort of talk about it. And it's interesting because we know we're still in low inventory numbers. The last time we went over numbers, we chatted about how they were increasing a little bit, but still not in any major way. So one of the things that I've seen in some headlines or are more homes coming on the market, and it's really interesting because when you look at some of the data and what's happening. Realtor.com put some information out recently and they basically said that there is an increase in number of sellers listing their houses later in the year, like right now than they usually do. And it's not typical. And when looking at the stats, it actually showed in August there was what they called an unusual uptick in newly listed homes compared to July. And they were hoping that was going to signal return in sellers heading back into listing their homes in the fall season. So normally that time of year, we see less homes hitting the market, and if you're listening to this podcast, you can't see my infographic, but I'll show it to Tom. You can see it did tick up where typically every other year, once you hit in August, it's down. Now the funny part is yes, we ticked up from where we were, but the inventory numbers for all the other years are way, way higher on the graph. We're still all the way down at the bottom, but there was a little bit of an increase in that. And so some of the stats that they gave were in 2017, new listings in August were over 500,000. In 2018, 492,540. 2019, 479,588. 2023, 387,076. So that shows you historically we're still extremely low even with that uptick that happened in August. But they're hoping that that's a good sign to see that people are finally saying, all right, now I'm going to possibly make that move and get my home put on the market. So one of the other stats that I saw was, and it's interesting because I look at all this stuff and I'm like, all right, what's really the root cause of this? I have my own opinions, but I like seeing what other people have. One of the reasons that I'm seeing out there more so is inventory is low because builders haven't been building enough homes in recent years and there's a graph that they've put out that showed single family home units completed in the new construction world. And when you look back, and they started it in the '70 and they broke it down like every 5 years, and for 14 straight years, there was 52. Based on the last 52 years, there was below average new construction homes being built. That is factual. You can see that, the data is there showing that that has to do with it. Now, another situation, and this we talked about, and I think this is one of the bigger ones, is that 70.7% of people that have mortgages, their rates are less than 4%. So almost 71% of the people that have a mortgage, their interest rate is less than 4%. So it's really tough for sellers to say, I'm going to sell my house and get rid of my 4% interest rate or lower to go to 7%. Now, in our last podcast, we talked about those that have enough equity, it may make sense, and we're seeing people use cash so that they're not having that payment shock. But those are two big factors. I think the bigger factor is honestly the interest rates because when we're out there meeting with people and talking with them, the reality is if they don't need to sell, it's hard. I'm not in this business to try to convince somebody it makes sense for them to sell their home. There are circumstances where it does make sense and there are circumstances where it doesn't make sense because, and the same thing, let's say that they're not going to buy and they're going to rent. I had a client the other day out in West Virginia, met with them. They were going to be in the area for another six, seven years. They had a kid, they wanted to get through school, but they want to move down south. And I said, it's great that you called. They're like, we think we want to do this now. And I'm like, do you know how much you're going to be paying in rent if you want to stay in the school district? Oh no, we haven't thought about that. And I'm like, well, I want you to do me a favor. I want you to go and look at what your mortgage payment is now. I want you to go and look at what you can get for that amount of money per month, and if that is something that you're happy with and good with, we'll get the home sold. If you're not happy with it and you want to wait a little bit or you don't want to do anything, no harm, no foul. I'm not here to talk myself out of work, but you need to do what's best for you and your family. And in that situation, it was tied into the family. They're like, no, we need to stay in the same school district. We're going to be here until the kid. And the kid I think was in seventh grade, so they still had a fair amount of time. I thought when I first met, I'm like, oh, so are you going to move south right away and just change schools? Oh, no, no, no, we're not doing that. Then I said to them too, I said, also, you want to look and see how much inventory is out there. Are you okay with possibly living in an apartment? They're like, I would never live in an apartment. I'm like, well, that may be your only choice. Can you see yourself doing that for five to six years? And they're like with neighbors above me and below me and beside me.
I understand. Yeah, no, I understand.
And they ended up calling me back and they said, wow, it's more money to even be in an apartment. We can't even get in a attached home. Definitely not a detached home. And we would be paying a little bit more even to be in an apartment, and that will drive me nuts if I have to deal with that for six or seven years.
They thought they were ready to go now.
And that's what we talk about on this though, is part of our job is not to just come in and throw a bunch of papers in front of you, get you to sign them and not have a game plan. Our goal is to work with you to make sure you have a plan in place, and then when the time makes sense, and it could be immediate, it could be a month from now, it could be six months from now, it could be three years from now. You need someone that's going to talk you through it, give you all the options and help you even think about, oh, you'd be amazed, Tom, how many people say, I never even thought about that.
Yeah, I understand.
Or they just assume, oh no, I'm just going to stay in the area and I'll get a rental. It'll be cheaper because they haven't rented in so long, they don't even know what's going on in the rental market.
That game's over, man, that ended while back.
And that's really what, again, reaching out to us, there's no obligation. We just really want to help you understand what your options are, and then you make the decision of what's best for you. It's not my decision, it's not any of my agent's decision. It's what makes sense for you. And when I met with them that night, they were ready to do, you were like, let's do paper. I said, why don't you guys talk without me around? These are big decisions you have to make and there are decisions you have to make that you may not be able to have those conversations openly. With me sitting here, this is something that you should talk about if it takes you a bit to try and figure it out. And there's no rush. The world is not, I just tell people, I'm like, you don't have to feel like you need to jump immediately. And people are always shocked when I say, why don't you guys talk without me around? And I don't mean I'm going to go to my car for five minutes. None of that crap, like at the car dealership. Well, yeah. Well, I'm going to walk in the other room and you guys can talk through this.
Yeah, no, I understand.
I just don't believe that that type of sales is good for anybody that forced stuff. You have the company come out to give you an estimate for the carpet and the company's there and you're like, well, I can give you this special and this price right now, but you need to sign before I leave. That right there is the biggest turnoff in the world.
Sure, I understand.
Or the same thing, the car dealership. Lemme go back and talk to my manager and I'm like, come on, we don't need to play this game. You know what your margins are. You know what can be done? You don't need to go back and talk to your manager where you're just going and walking around the corner, not talking to anybody.
You're fighting against the whole real estate salesman, the whole realtor stereotype. With this kind of talk, Jay.
Well I mean, but that's why, and again, it sounds tacky and our experience the difference a day makes, but it really is, we're not out there to push people to do something so that we get paid. We're out there to help them make an informed decision that makes sense for them and their significant other, their family, whatever the situation is. And that's why we get a ton of repeat business.
Repeat business, repeat referrals. People, they took care of me.
I had a call the other day from someone who, they're out of the area now, they're divorced, their ex is still living in the house. They had it in their agreement they were going to sell. And I talked her through some options and gave her an attorney to talk with because I'm like, I'm not an attorney, so if you guys aren't on the same page, you're going to need to have to. My initial thing was, well, just talk to them, see if you can get on the same page. If you can't and you need to have a referral to an attorney, or I can get you in touch with someone to chat with there, and then they can inform you what your options are, but there's no rush. Or if you were ready to roll, I could go out and do what needs to be done. Again, it's a consultative approach, and that's really how to build, in my opinion, one of our goals of building this business is to do it by helping people and providing a service, not just in a typical sales situation or sales setting. So if that sounds appealing to you, reach out to us. Like I said, we are definitely not your typical salespeople.
I wouldn't be here. I wouldn't be here for now, 11. I don't know how many years today.
It's been forever, right.
Been a long time.
Well and the beautiful thing is when you first started doing this, you weren't doing anything as far as moving, and you got to experience how we work.
Yeah. Oh, it was great.
There was no rushing. There was no,
Hey, that would've stopped. Our relationship, would've stopped immediately. And here we are years later, and now I'm still pretty happy. I'm ecstatic with what you guys did for me.
Yeah, well, and it made sense, and I mean, it was talking through a whole lot of situations and figuring out what made the most sense for the family. That's what it boiled down to.
It was great. And Christina has the home of the week.
So this week we have a brand new listing. It is 604 Military Road. It is the cutest Cape Cod you've ever laid your eyes on right across from Fort Detrick. So a fantastic location. This little house is all brick. It has beautiful retaining walls, an awesome little backyard, four bedrooms, two baths, wood floors, and so much charm. It's awesome. It's also going to be priced right around 400,000. So if you're interested in this property, just go to our website dayhometeam.com and you can check it out under our featured listings.