March Mortgage Rates Head South
While volatility within the banking sector rattled some nerves, there was a silver lining for home buyers: lower mortgage interest rates.
According to Freddie Mac, rates for 30-year, fixed-rate mortgages fell from 6.73% to 6.6% during the week ending March 16. They continued to slide last week, hitting 6.47% on March 23. However, with the Federal Reserve's recent .25% interest rate hike coming into play, it's not clear if rates will continue to drop.1
Home Sales Begin to Recover
After a year of decreasing sales, numbers reversed last month with a vengeance, registering the largest monthly percentage increase since July 2020. Total existing home sales grew by 14.5%, turning in a seasonally-adjusted annual rate of 4.58 million in February.
While the median home price slid 0.2% during February, this didn't apply to all regions, as prices rose slightly in the Midwest and South. This ended a 131-month streak of price increases, which was a relief to many prospective buyers.
Single-family home sales soared to an annual rate of 4.14 million in February, up 15.3% from January. Condo and co-op sales also showed signs of recovery, adding 30,000 units in February. Median condo prices increased slightly (2.5% in February).
Regional sales numbers were as follows:
- The West took first place, with existing home sales rising 19.4% in February to an annual rate of 860,000.
- Northeast sales improved 4.0% to an annual rate of 520,000. Median prices were around $366,000.
- In the Midwest, sales grew 13.5% from January to an annual rate of 1.09 million.
- The Southern region saw existing property sales rebound by 15.9% in February to an annual rate of 2.11 million.2
Bring History into Your Staging
If you've recently added some older homes to your listings, staging them for showings may seem to be a challenge. However, it could be your chance to turn them into properties with more online Likes than you ever imagined, simply by staging with retro flair.
Many older styles contain accents that appeal to buyers who prefer homes that have retained their personality. An excellent example: the Bungalow Heaven neighborhood of Pasadena, California. Instead of complaints about these smaller homes – most are under 2,000 square feet – buyers have paid millions for these properties for years.
Instead of taking a "one size fits all" approach to staging, discuss bringing a historic look to the home, restoring it with original colors and flooring, staging the interiors to complement the exteriors.
Springtime has always been the season of new beginnings. Take the time to research your older listings. That tired 1950s home could make headlines in your local press after you convince the buyer to go for patterned linoleum, pastel baths and audacious wallpaper...or if you use virtual staging to create a preview for retro-loving buyers.3
Let's Reel in Those FSBO Sellers Together
Every spring, homes with a FSBO sign in the front yard appear. You may have already spotted one or two in your territory.
Needless to say, you'll want to convince them to let you handle the sale. Explaining how you can make the process more lucrative is a given, but some FSBO sellers can be stubborn. Here are some things to keep in mind, whether you approach them in person or with a traditional letter:
- Boost their ego by complimenting them on taking on a difficult task. While this may sound counter-productive, it's not. Many decide to take the FSBO route without researching the complexities that lie ahead.
- Ask them if they've been approached by window shoppers. Sellers who are constantly approached by non-qualified buyers may realize that they don't have the time or patience to sell their own home. (You may want to wait a few days until approaching FSBO sellers for this reason.)
- Share statistics that illustrate how much more profitable a home sale can be when an experienced agent handles the deal. Ideally, you'll be able to produce details of homes near the FSBO seller's property that sold for more than their asking price.
- I've saved the best for last: explain how you can streamline the home sale process by preparing a shortlist of buyers who have already been pre-qualified for a mortgage. Refer them to me and I'll do the rest.4
Be More Than Just Another Agent
No matter where you are in your career, you're in a particularly competitive business. That's why the top agents continue to improve their skills in these areas:
Problem-solving. If you can confidently describe immediate, effective solutions that keep sales from falling through, you're a big step ahead. This is especially important when buyers and sellers are unable to agree to certain contingencies or conditions to a sale. When you learn how to turn these into win-wins for both parties, your commissions will reflect it.
Speed of communication. Has a new client ever sounded surprised when you quickly returned their calls? Perhaps it's unfair, but many potential clients complain about agents who won't call them back. Sales are vital and clients drive them, so create new ways to keep your clients in the loop every day.
Advocacy involvement. Many of the most successful agents are advocates for all types of homeowners. They serve on local committees and volunteer for Habitat for Humanity and similar nonprofits. This deep involvement proves you truly believe in the American dream of home ownership and want to empower more members of your community.5
Sources: 1reuters.com, 2nar.realtor, 3inman.com, 4theclose.com, 5theamericangenius.com
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