House Hunters Leave the Sidelines
The latest consumer price index (CPI) report suggests that the worst of inflation is behind us. This suggests that the Federal Reserve may continue to ease 2023 interest rate increases, causing mortgage rates to decline.
Shifts in the housing market area also suggest that the housing market is becoming more favorable to buyers. Homes are remaining on the market for up to 44 days, according to recent data – the longest period since April 2020. In addition, pending home sales were down 32% compared to the same timeframe in 2016. More buyer-friendly data: the median home sale price rose only 0.8% year over year at $351,250, down 10% from June 2022's peak. This may bring back homebuyers in the coming months, especially since Google searches for "homes for sale" are now up almost 50% compared to November 2022.1
Manners Impact the Outcome of Conversations
Mastering the art of conversation can be tricky. According to a new study from Harvard, conversations usually don't end when both parties would like them to. Researchers studied 900 conversations and found that only 2% of them ended at the appropriate time. 46% carried on longer than either party wanted, and 30% ended when only one party wanted.
Ultimately, the study revealed that not only do people talk too much in conversations — many people are left unsatisfied because they don't communicate their expectations. Manners played a key role in keeping participants from communicating effectively because they wanted to be polite. Next time try telling a client that you have "two minutes to talk." It can help keep everyone focused on getting what they need from the conversation.2
Three Key Strategies to Help Sellers Lower Their Price
Being thoughtful and strategic is vital when bringing up the topic of price reductions with your home sellers. You'll need to maintain constant communication, do your research, and be patient. Here are three key strategies to help sellers reconsider their prices:
1. Manage expectations.
Let sellers know that prices are less predictable in today's shifting market. Tell them right away if their home isn't getting enough traction. You should also ensure they always feel in control of their choices, even with your price recommendations.
2. Back up proposals.
Hearing your strategies for lowering their price won't be as difficult if you let your clients know what could happen as a result. Back up your price reduction proposal with current market facts and explain how reducing the price could increase offers.
3. Find the right price.
Ultimately, sellers will decide on the price reduction. But you're the expert and need to educate them with the latest data on comparable sales in their area.3
Top Trends in 'Barkitecture'
Pet-friendly features for dogs is a popular trend among today's homebuyers. The number of buyers interested in home features that help their furry family members feel more comfortable is growing.
Here are four popular 'barkitecture' trends:
1. Dog washing stations.
These often resemble pet-sized showers and can be in a laundry or mudroom. These make it easy to clean muddy paws after a walk or give pets a quick bath.
2. Hidden feeding areas.
Buyers are prioritizing hidden food and watering stations for their pets to ensure feeding is organized, sanitary and convenient. They can be incorporated into kitchen islands and usually include a pot-filler faucet for water bowls.
3. Under-the-counter fridges.
Homebuyers who like to keep their pet's food fresh often look for a separate discreet refrigerator. Small fridges located under a counter or hidden in a kitchen cabinet are popular locations.
4. Hand showers.
A hand shower and attachments for existing tubs and showers are inexpensive ways to help buyers create an environment for pampering pets.4
Billion-Dollar Grants for Energy-Efficient Homes
The Biden Administration recently announced two new grants totaling over $1.2 billion designed to improve the energy efficiency of new homes.
The first initiative will provide $225 million for the Department of Energy's Resilient and Efficient Codes Implementation program. The second initiative sets aside $1 billion for states and local governments to adopt the latest energy codes. States and local governments can partner with stakeholders that include local jurisdictions, home builders, and home builder associations when applying. Both grants will be awarded through 2029.5
Sources: 1themreport.com, 2theame ricangenius.com, 3bearealexpert.com, 4nar.realtor.com, 5nshb.org
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