Springtime Buyers More Active Than Usual
Even with some areas short of inventory, this spring's home buyers have still been active to a surprising degree.
While property showings declined about 10% in May of this year, this was no surprise for seasoned agents. This was part of the pre-pandemic seasonal pattern when buyers traditionally turn out in force in springtime, tapering off with the arrival of summer.
Specialized data found that buyer foot traffic during May 2023 remained elevated above pre-pandemic levels, which suggests that the housing market is gradually settling down. Buyers continued to outnumber sellers, pushing prices up even more. Sellers in Seattle WA, Columbus OH, and Washington DC averaged around 10 showings each.
Regionally, the Northeast performed well compared to May 2022 with a 13.1% increase in traffic year over year. The Midwest posted a smaller positive gain of 3.8%, while the South declined 3.8% and the West was down 7.7% from last year. The West also led in monthly traffic declines with a 13.4% decrease in buyer foot traffic compared to April.1
Build Rapport with Your Facebook Leads
With almost 3 billion active users, Facebook is a primary source for agent leads. Here are tips for attracting the right leads on Facebook and building a friendly rapport when you call them.
Identifying the best lead strategy is simple: look at your active listings. For example, do you have one or more waterfront listings? Consider a Facebook headline like "Waterfront Homes for Sale in (Your Area)". Are you selling several starter homes? Try "The hottest list of (City) homes under $____."
When calling these leads, be sure to start by reminding them they clicked on your Facebook ad and indicated they would like more information about one or more listings. Here's a sample of how the conversation might go.
You: I see you were on Facebook and requested a list of {location or type} homes. I'm just wondering what exactly you would be most interested in.
Wait for response.
You: OK great, not a problem. I can certainly do that. Let me ask you, what would be the reason for moving if you decided to move in the future?
Wait for response.
You: Great. How long have you owned your current home?
Wait for response.
You: Wonderful, so you probably have some great equity by now. (Explain if needed)
Wait for response.
You: If it were possible to trade homes and take on little or no mortgage, would you consider moving sooner than later?
Wait for response.
You: Would it be helpful to look at numbers? No obligation. I can come to your home at a convenient time and tell you what a buyer would pay for your home in today's market. This will allow us to see what's out there for you within those numbers.
Eventually you'll turn some of these calls into meetings, and you can take it from there. When they're ready to begin viewing your listings, I'll be ready to assist them with financing.2
Home Prices Hit Record Highs
Temperatures weren't the only thing on the rise in June. According to financial data and analytics provider Black Knight, their Home Price Index (HPI) hit an all-time high.
Prices have now reached new peaks in 30 of the 50 largest markets, with several northeastern metros seeing home prices 5 to 8% above 2022 highs.
After slowing for 14 consecutive months, home prices rose by +.67% (SA) month-over-month in June. This pushed the annual growth rate to +0.8%.
While rising prices may be problematic for first-time buyers, established homeowners have seen their equity levels rise to within 3% of their 2022 peaks. Total mortgage holder equity topped $16 trillion again in June, with tappable equity — the amount that can be accessed while retaining a 20% equity stake — climbing to $10.5 trillion.3
ChatGPT and Real Estate Scams
The AI app ChatGPT has only been around for a few months, but experts have already identified one nefarious possibility: the new business scams that could be created with the help of AI. In particular, real estate scams such as closing wire fraud could be attempted, as ChatGPT could make these attempts more believable.
Since ChatGPT draws from virtually countless sources to create its content, it's capable of creating convincing copy for closing wire fraudsters. Also, since earlier scammers have been busted by their poor spelling or grammar, ChatGPT can help them craft more convincing messages.
Another glaring problem that ChatGPT poses on the scam front is its flexibility to create different responses. Since ChatGPT will always return a different answer to a prompt, anyone using it for criminal means can create a variety of unique messages without extra effort.
To protect yourself and your clients against possible AI-generated scams, the same due diligence applies as for pre-ChatGPT scams. Double-check all documentation, work with the same third-party vendors if possible, and treat demands to wire funds to unfamiliar destinations as highly suspicious.4
X Marks the Twitter: Your Guide to Threads
If you're not already posting on Threads, an app similar to X (formerly Twitter), you may be considering adding it to your social media presence, especially as it's already in use by 120 million Threaders.
Threads was created by Meta, the corporation that owns Facebook and Instagram. Threads offers users the ability to post and share text, images, and videos, as well as interact with other users' posts through replies, reposts, and likes.
- Since Threads is part of Instagram, you can log in with your Instagram username and password.
- You can customize your Threads profile to be like your Instagram profile, although this isn't mandatory.
- Your posts may be up to 500 characters long. Links, photos, and videos up to five minutes long are allowed.
- Your Threads feed will include posts from people you follow on Instagram plus recommended content that may interest you.
- You can share a Threads post to your Instagram story or share by linking it within other platforms.5
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