A Look Back...and a Look Forward
Last year was a tale of two halves for the housing market. From January through June, we saw continued, dramatic price appreciation. This was fueled by Millennials entering the market, a decade of underbuilding, non-existent inventory, and historically low interest rates.

When the Fed began raising rates in March, buyers and sellers rushed to the market to transact before the full impact of higher mortgage rates took hold.

But in the second half of the year, the impact of skyrocketing rates took hold. Demand fell as buyers opted to stay out of the market which, in turn, caused inventory to rise. Sellers lost their leverage, buyers regained some control in negotiations, and prices started to decline. That said, price depreciation was not as steep as some feared and as of the end of the year, the market seemed to correct itself.

The first half of 2023 is widely expected to be a continuation of 2H 2022 with affordability, inventory, and volume remaining low. Despite moderating inflation, there is still a lot of economic uncertainty. By the second half of this year, the housing market may stabilize and make a modest recovery – but that is dependent on mortgage rates falling and affordability improving. If these things don't happen, we may be in for a longer correction.1

Expect Falling Home Prices This Year
Now that high mortgage rates have halted the housing boom, home prices are beginning to normalize – but by how much? Although some predict home prices will increase by another 7% this year, there's good reason to doubt that. The causes that fueled price growth have evaporated.

With higher interest rates, there are now more sellers than buyers in many areas. Some expect home prices to come down as quickly as they climbed – but again, by how much?

If a recession occurs, all bets are off. But normally, prices fall in accordance with what the local income can support. In markets with good economic growth, the adjustment won't be so severe. And locations where people want to move (think Florida, Texas, Idaho, and Utah), market prices may simply remain static until income can catch up. In 10 of the biggest U.S. markets, possible price drops in 2023 range from 19% (Denver) to 33% (Tampa-St. Petersburgh). In 10 smaller markets, anticipated price drops range from 24% (Charleston, Knoxville, and Tacoma) to 36% (Boise).2

Nail Your Real Estate Listing Presentation
There's nothing worse than getting to a new listing appointment, only to not sign the prospective client. Follow these five easy steps to begin crushing your listing presentations and landing more business.

1. Do your research.
Learn all you can about the property, seller, and community so you can position yourself as a local expert. The more information you gather ahead of the presentation, the more convincing you'll be that you're the perfect person to sell their house.

2. Start your presentation with the right tools.
Begin by demonstrating confidence. Dress well and have your branded marketing materials ready to review with the seller. This will help them better understand the process and appreciate what you bring to the table.

3. Deliver an impressive presentation.

  • Use the 60-second lead to formally introduce yourself, share your background, and lay out your qualifications.
  • During your 2–3-minute setup, capitalize on the research you've done to show you know the property, community, and local market.
  • Take a few minutes during the Q&A to solicit feedback and clarify anything the seller questions or causes them to hesitate.
  • In the 1-minute close, clearly and concisely ask for the listing. Try to elicit a firm "yes" from the seller.



4. Move past objections to a YES.
If your seller expresses concerns such as "We're not sure it's the right time to sell," "We want to speak with more agents before we make a decision," or "We expect to get more money for our home," be sure you have well-rehearsed responses in your back pocket to get them across the finish line.

5. Follow up.
Whether you get a "yes," "no," or "maybe," be sure to send a thank you note, and add the seller to the appropriate email drip campaign to continue cultivating the relationship.3

Storytelling Strategies to Sell Homes More Effectively
A home's history is often as compelling as the house itself.

Rely on impactful storytelling to drive your real estate business forward with these tactics.

1. Use videos, because seeing is believing.
YouTube is a great channel for educating consumers and clients with videos. You should also consider Instagram and TikTok for publishing short clips that keep people wanting more. And use your website to upload videos that tell your story.

2. Craft each narrative with care.
When creating a story for a listing, do it thoughtfully and conscientiously. Use a checklist, conduct research, and talk to the seller to help trigger a story for each listing. The goal is to create a compelling narrative that will engage buyers and encourage them to "step into" the seller's story.

3. You're the agent, so be part of the story.
Your appearance might be the deciding factor in someone choosing to work with you. Be concise and truthful because people naturally gravitate toward authenticity. And be honest and humble — try sharing an embarrassing but funny anecdote. It may spark a connection with people you've just met.4

New Perspectives for the New Year
Though there are legitimate concerns consuming the industry this month, there's some good news to concentrate on as we move ahead.

1. Rates remain low.
Though still high compared to previous levels, rates are still historically low, and they are coming down. It's important to keep current rates in perspective.

2. Wealth is being built.
According to the National Association of Realtors (NAR), single-family homeowners typically accumulate $225,000 in housing wealth over 10 years. With rent prices soaring, homeownership is a great wealth-building tool for the future, and can be the more affordable option.

3. Homeownership offers social benefits.
Homeowners form social bonds with their neighbors and tend to be attached to where they live. They are also more likely to vote in elections and volunteer for local charities.

4. New construction can finally catch up.
Supply chain congestion is finally subsiding, and normalcy is expected to resume during the first quarter of the year. Lumber and other building materials' prices are also coming down. With some challenges easing, builders can better-address inventory and cost issues that plagued them since the pandemic began.5

Sources: 1biggerpockets.com, 2forbes.com, 3theclose.com, 4inman.com, 5nationalmortgageprofessional.com