Market Update - November 6th, 2023
Good morning, team! Let's cut to the chase...we saw some relief in rates last week. Will it be short-lived? Also, we share a script that will 100% get conversations going with your past clients.
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3rd Biggest Decline in Rates in Over a Decade
An onslaught of economic data drove interest rates down between Wednesday and Friday.
Wednesday - favorable Treasury Bond auction results, ADP jobs report misses expectations, Fed held interest rates for the second consecutive meeting
Thursday - Jobless claims increased
Friday - Bureau of Labor Statistics job report missed expectations (150,000 new jobs vs. 180,000 expected AND the unemployment rate moved up to 3.9% AND they revised Aug/Sep numbers down 100,000)
We will likely see a bit of a correction after such a big move last week. It's common for markets to overreact to news then give back a bit of the gains. However, it's a move in the right direction that we cannot ignore.
Key Takeaway : Their hikes since March of 2022 seem to have finally started to result in slowing the economy. While the Fed didn't specifically mention it in their meeting, more investors are starting to assume the Fed has pivoted away from further future rate hikes. The Fed will never formally announce a pivot as it would shock the markets, but it does look/feel like they may be done. A few more months of slowing economic data points would further solidify things.
Missouri Jury Finds NAR/et al Guilty - Ordered to Pay $1.78B
The National Association of Realtors (NAR) has been found guilty of conspiracy to inflate commissions. NAR and the defendants have been ordered to pay $1.78B in damages. NAR has already stated they plan to appeal.
They are urging agents to leverage buyer representation agreements to maximize transparency.
Immediately after the decision, a flurry of incremental lawsuits began. Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate, Howard Hanna and Douglass Elliman are among the list of the accused. This feels like just the beginning of a very long legal battle.
Key Takeaway : It’s a developing story and nobody really has a handle on the industry-wide repercussions. We will all (realtors AND lenders) get through this change together.
Realtor Value Bomb : Zestimate Scripting
Discussing real estate often opens doors to new possibilities.
Here’s how the Zestimate Text works:
1. Choose a past client from your database.
2. Search for their property on Zillow.
3. Screenshot an image of the Zestimate.
4. Send the image via text with the message: “I have some thoughts on this. What's your take on this valuation?”
Zillow indicates that Zestimates have a median error rate of 3.2% for listed homes and 7.5% for those off-market. With the National Association of REALTORS® stating the median home price in the US for August at $407,100, this means Zestimates could deviate by roughly $13,000 for homes on market and about $30,500 for those not listed. You have the expertise to provide a more accurate valuation. By sharing recent comparisons, suggesting enhancements, and understanding homeowners' needs in real estate, you can set yourself apart.
This strategic approach doesn't cost a thing but emphasizes your knowledge, sparking discussions about property values and market trends.
Instagram Posts from Last Week
Don’t hesitate to reach out if you need anything at all. Have a wonderful week!