Market News May 2

Market Updates

Home Prices Falling in Major Metros


It's potentially good news for buyers, bad news for sellers. While property prices are still increasing, the gains are slowing. Recent data found that national home prices only rose 2.1% year-over-year, which is the slowest growth rate since July 2023.

In addition, these major metro areas saw property prices slide earlier this year:

  • Phoenix, AZ
  • Oakland and Sacramento, CA
  • Jacksonville and Orlando, FL
  • Portland, OR
  • Nashville, TN
  • Austin, Dallas, Fort Worth and San Antonio, TX
In addition to falling numbers of mortgage applications, agents in many parts of the country report that buyers continue to be ultra-cautious amid high housing costs and widespread economic uncertainty.1

Small Listing Errors Can Cause Big Problems


Making a mistake within an online property listing can happen to the most careful agent. Perhaps a seller described a walk-out basement as a walk-up basement, HOA membership was omitted, or another agent typed in 2.0 acres when they meant 0.2 acres.

Everyone who uses MLS data relies on it for accurate information. When data is input incorrectly, it can do more than confuse buyers, who may end up losing their trust in you. It also skews statistics, which impacts CMAs and appraisals.

No matter how large or small the error, it needs to be corrected by the agent as soon as it's identified. Sellers' agents should notify their client asap if details provided by the seller are found to be incorrect.

In a few situations, missing or incorrect data can even end up in a court appearance. For example, if a property's faults aren't properly disclosed, an unhappy buyer may lawyer up if expensive problems are discovered after move-in.2

Classy Closing Gifts for Buyers


Saying "thank you" to buyers is always important, no matter what type the property. The best closing gifts should be high-quality and tailored to each client's lifestyle.

Here are some suggestions that prove you're a truly thoughtful agent:

  • Pet owners: a collar or tag with the owner's new address as a QR code.
  • Luxury buyers: a framed artistic rendering of their new home.
  • First-time buyers: a personalized front door mat or tool kit.
  • Any buyer: A plant, candle or key holder.
If you've represented a seller, don't forget to present them with a gift as well. These should reflect the property's value. In other words, don't present a seller with a key ring after closing a sale for their million-dollar property.

Last but not least, be sure to review RESPA's Section 8 for guidance, together with your state's real estate laws regarding client gifts.3

How Recessions (Usually) Affect Housing Markets


While talk of an economic recession has been in the news for the last couple of years, it hasn't officially arrived yet. However, the odds of one arriving later this year are rising. This means that a lot of us are wondering how this would affect the housing market.

While history is never guaranteed to repeat itself, checking out some historical data could be an indicator of what we can expect if a recession arrives later this year.

Many people think that if a recession hits, home prices will fall like they did in 2008. But that was an exception, not the rule. Instead, real estate data tells us that, during four of the last six recessions, home prices actually rose. Therefore, if a buyer or seller is expecting prices to fall later this year, you may want to remind them that this isn't guaranteed.

However, mortgage rates do often see a decline when the economy slows down. This happened during the last six recessions which took place between 1980 and 2020. However, a return to the 3% interest rate isn't expected, mainly because it took a global pandemic to bring this into play.4

Three Apps to Slay Spam Calls

It's happened to all of us. You're in the middle of a walk-through and your phone rings. The caller ID belongs to a local business, so you pick it up...only to hear a spiel about your vehicle warranty.

While there are already several apps you can use to block these calls, none are 100% effective just yet. But developers keep improving them. Here are three highly-rated blocking applications for those annoying robocalls, all available for both iPhone and Android users.

Best premium app: RoboKiller. The developers of this app claim a 99% success rate for blocking spam calls and texts. You can even choose a Revenge Bot recording to annoy an unwanted caller. However, this one isn't free after the initial tryout period.

Best free app: Hiya. This app comes with options like auto-blocking and reverse phone lookup. You can also enter your business numbers, so you don't have to worry about accidental blocking.

Best for number lookups: Truecaller. Available here and in other countries, this app claims to have busted 56 billion spam and call fraudsters. It's also available in 12 languages.5

Sources: 1redfin.com, 2nar.realtor, 3theclose.com, 4keepingcurrentmatters.com, 5mashable.com