Keyed In
Keyed In

Episode · 2 months ago

State of the Market 2022 Q3

ABOUT THIS EPISODE

Join Max and Brent, and Leslie! The three hosts discuss the peaks and valleys of real estate. When things started to shift after Memorial Day, it wasn't long before interest rates doubled what they were in 2021. As Brent poignantly remarks, every so often a market slow down results in an industry cleanse...back to the basics where only the strong survive. 

Having a season loan officer is key in our crazy real estate market. We talked about this all the time on the show. YEP, thanks Brent. Duke Walker is your guy. Duke Walker is with Movement Mortgage and Duke can do it all. He can get you pre approved in ours offer the most competitive loan products and the communication will be constant from step one. Follow up his key in our business. That's why Duke makes its standard practice to fall up with his clients throughout the loan process so you're never in the dark. That's buyers and agents bottom line. Duke Walker knows what it takes to get buyers to the settlement table on time. That's Duke Walker with Movement Mortgage. This is Keyton with Max and Brent, unlocking the minds of the industry's top real estate professionals. And now here are your hosts, Max Rayven and Brent Jackson. Everybody, Welcome to the Keyton Podcast. I'm Max RayBan and i am Brent jacks and I'm Leslie back Off. So we have Leslie here today. Today is our state of the Market episode. We do these what every couple of months recorder Yeah, and so no guest per se but Leslie has been on the show a few times now and great to have you. Thank you, thank you for letting me join. It'll be interesting doing state of the markets. So you and I have been in business a little bit longer than Leslie, you longer than me. But having an agent that's been in a business for about a year or two, you know, what is she seeing, hearing filling based on the some of the reports that are coming out, some of the data that's out there. What if her clients telling her things like that. It will be a good viewpoint to have on this episode. I mean, I would say that two years actually, given all the stuff we've dealt with over the last two years is pretty that's a pretty intense two years. So you've got a lot of experience. Yeah, well I was laughing thinking coming here. I got my license August of so that based off of you know, all the graphs and charts was like the busiest time and probably a time that we'll never see again in real estate in d C. And so now you know, we're kind of just coming down off of this super high high. So I I'm finally going to start to see the peaks and valleys that everyone talks about in real estates, and this is like a big shift that's happening now with the interest rates, and we're seeing a deceleration and the intensity of multiple offers listings on the market longer. So yeah, it's a it's for you, for you and your experience in the business, You're you're running the gamut really quickly. So we usually like to just talk about some headlines and we've got a bunch of articles spread out in front of us. I guess we can just pretend like we've already read all of these and then start expounding. You didn't stay up all night reading all of these, you know, I skimmed. I skimmed. So the first one I was looking at actually was from Urban Turf. Urban Turf is our local real estate sort of journalism publication. Here. They focus mainly on DC real estate, but they also offer links every day to national stories that they pulled together. They did a piece with some different numbers, so it says more first time buyers, less inspections US home buyers in two by the numbers. So amid the changing housing markets, Zillo has released its latest consumer housing Trends report for buyers below. Urban Turf pulls out some of the more interesting stats pertain to US home buyers into the median age of home buyers, which is up from forty three last year. Not really changed, right, the percentage of home buyers who purchased a detached single family house. That's huge majority. And I think that we think we know that those are still the most popular products in our market, absolutely, right, I mean those are still like every that's that's still a hot commodity here in Upper Northwest whatever your magic number is one five and below. Those things are still moving at a at a swift pace. Yeah, forty five percent. The percentage of first time home buyers up from so people still out here getting their feet wet in the market even as things were really aggressive. Yeah, I think that that's interesting for sure, with just how rates have changed, that you know there were first time homebuyers out there that weren't scared. Well, this data might be a little lagging, right, like you know, the last couple of months with the rate hikes. I mean, now we're during the time of this recording, we're close to six percent on average, So that's like double what it was a year ago. Right, This says it was Zealo surveyed over home buyers between March and July. So yeah, so March things were still flying, right. So my thinking is I felt that personally shift in the market after a Memorial Day. It's like people took off our vacation. Will Fasta, who was on the show, he had a great point. I think it was in a stretch of two weeks you had, you know, the rates went up, fed met rates went up there, you had the war Ukraine versus Rossia, so all of that and then people going away for the whole summer for a couple of weeks, schools out, all that jazz, and the market just started to go sideways in my opinion, right about Memorial Day, right, like right, and I remember mid June was when like the that massive rate hike went up. And yeah, yeah, so some...

...of this data March to July, it's like the market is still pretty hot, exactly totally to the number of offers the median home buyer made before they were successful. So that sounds pretty normal to us. So I've definitely had buyers takes longer than that, very but I think, well, now so things have slowed down a bit. Uh, I definitely a buyers who are the only people making offers, and we can have all of our normal contingencies and maybe negotiate a price. Same thing, right, Brent. The percentage of buyers who paid for a home without a mortgage, So that's that's a lot of people paying all cash on any kind of scale. Yeah, that's percentage of buyers who did not get an inspection prior to buying their home. Okay, that this is like always the controversial topic as the home inspection. But let's just talk about that a little bit again. We've always talked to us on the show a few times when you're working with a buyer and you're in this a competitive situation, which are still coming up. There's still you know, we're talking about single family homes still the hot commodity. Right, you might run into a two or three opera situation. I think buyers still not waiving inspections. They they want to do a pre inspection, or they want an inspection clause, they're not they're not really interested in completely waiving that inspection anymore. The tide has shifted, whereas they were doing that in the springtime, like no inspection, no pre inspection, no home inspection. I think that a lot of people read the news about that and buyer remorse felt some pain. So what about different price points, because I'm some of the buyers I'm working with and I don't want the threshold is it might be one and a half or two million and above season buyers, it's not their second or third home. It's probably their fifth or sixth, depending on what they're trying to accomplish with the negotiating strategy. I'm still seeing a lot of the buyers not put in the home inspection contendency. But definitely if it's under a million dollars, it's like usually a first time HomeBuyer or second time HomeBuyer, or move up putting Rokondo to a house their parents or someone told him you need to do an inspection. You don't want to buy a limon, right, Yeah, yeah, I think. I mean for me, I think I've really only had one client fully way of the infection, and we still did do like a informational inspection. So yeah, definitely the price point that I worked with, it was like, no, we're not waiving that at all. And then this last stat on here, it appears interesting at first, but then I was reading it again. Is the percentage of buyers who said they would be at least somewhat competent making an opera on a home after seeing a virtual tour, but not an in person viewing. So I mean the keyword there would be at least somewhat common. That's not very yeah, that that means little. Yeah, I don't. I mean I don't know. Would you guys, you if you had a site unseen buyers, I have not brent you. Definitely. I've definitely had silence seen buyers. And usually they have a third party, whether it's a family, a friend, or inspect somebody comes through with me doing a virtual tour. It's like, yes, the three D matter reports are great, to photos, the video, all that is great, but is when someone else there to verify, it's like not me doing FaceTime with them, but on what they're counterparts, so to speak, to be you could even be like a family or a son or a daughter. Personally, I think I bought I bought like five or six places side unseen. It's just like no, yeah, no one I am buying. It's in their second home investment properties and they're in condom buildings. So I'm not as concerned about, you know, what goes on because I know that inside a building, I can remedy whatever situation is leaky, tolt or something like that, and it's not your primary I think the biggest thing I had was placed a bought in South Florida, Miami Beach. I had to replace the air hander, which cost me five thousand dollars. But again it's it wasn't a dil breaker, didn't. But that's totally material stuff, the thing than the not as tangible items. When you're purchasing real estate side unseen are you might see something like a single family house, Like I look at stuff in Palm Springs all the time. I'm obsessed with like the way the real estate looks there and you see this thing that one looks like a good deal, you really don't know what like on the street level, the neighboring properties, even with street view. So obviously you have good realtory connections in those second secondary home markets where you're so you trust them to also tell you those thing. Absolutely. Yeah, I'm looking for a place now in Maine, and a lot of what we're doing is it's going to be side on sne So if we get a little cottage house and Camden or Rockport, Rockland all the way down through like Portland. It's a small house, but it's houses different than ability because just seeing what I bought and what we've passed on in DC, like their structural issues, Like everything can look great on the photo, but until you get down into the dirty details and you see a structural issue that would frighten me as a buyer. But you can kind of see some of that with your eyes walking around the property. If you see, you know, cracks in the foundation or whatnot to that's that's scary because that's expensive or can be expensive. Well for the kind of stuff you're talking about. You know, it's not always going to be practical. If you're trying to purchase a vacation home in a market that's popular, you may you might not have the opportunity to actually get there anyway, if you really want to make that purchase. All right, So that was those...

...were the numbers in the Urban Turf. Urban turf articles said more first time as less inspections. So if you want to look that up, that's on urban turf. That's interesting that, I mean, we one more tidbit on it. It says did not get an inspection. To me, that seems a little because I think I only did one or two inspections over the course of the last two years. Everybody was buying side unseen. Yes they had some problems afterwards, or I would buy them a whole warranty as a closing gift. But I think I only did one or two over the course of two years. What about you, guys, I definitely did more inspections, but I do think the number. I think that that number almost seems high, Like I think that more people were still waiving the inspection, especially in these multiple offer situations. So yeah, I was kind of shocked with that number as well. Well, I think it's it's a nationwide survey, I guess, so we don't know necessarily what it's like in every other o their market West Virginia. You can get a whole inspection, I think so. But yeah, I know, indeed, absolutely most of the inspections I did, probably in the early part of this year, We're for sure, either pre inspections or just walk and talk inspections or what completely waived. Yes, yeah, like to actually get a contract with a real home inspection, didn't happen that, right, And I guess it does not say I mean this to me. Makes it sound like that was in the contract, not just someone that did a PIKEN section. Yeah, I think it would be hard to account for like pre inspections anyway. All right, so let's move on to this other one. This one is from Zillo. More pending homes are falling through, but no need to sound the alarms. I'll just read the key points here. The share of contract cancelations pending listings that have gone back on the market without a sale, has recently increased, but remains in line with pre pandemic norms. The recent increase in contract cancelations is more evidence of a rebalancing in the housing market that is both eased buyer demand and given buyers who remain in the market more negotiating power than they have have had for the most of the pandemic, and a greater share of lower price homes have fallen out of tract than higher priced homes. This likely reflects affordability challenges taking their toll on buyers with relatively lower incomes as mortgage rates have risen, so contracts falling through. Obviously, again looking at national housing data here, but on our local sort of personal level. Brent, how are do you have any issues with contracts lately in the market of people more skittish about these things. Yeah, I'm very superstitious, so you know, knock on wood. I've not had anybody, you know, back out of a contract, whether representing the buyer or the seller. Now watch this podcast and debut on Monday. All the deals fall apart, right, But I am hearing and seeing from other agents a lot I think, from what I take is a lot of it's tied directly to the industry. I was talking to a home buyer that refinanced when he was building his house and palisades. He was quoted, you know, once it was all done, seven thousand dollars a month or has toltal mortgage. The rate has now since tripled in his you know monthly mortgage is gonna stories like that. It's scared, you know, and it's it becomes an affordability factor of if you're paying that over the course of your double your mortgage payment of the course of two or three years, could you just walk away from your earnest money to posit It's like, you know what, let me go back to her renting and I'll save a little bit money, I'll lose my earnest money deposit. Like getting too much into the weeds of the contract. But I mean I definitely had a few fall through for whatever reason. Recently, I had one fall through. The buyer was enthusiastic about a condo and over the weekend she decided she didn't really like the location. I mean she was, you know, several days into the contract already, but then she decided to he didn't like the location for whatever reason and wanted to think about it a little longer. She had she had an inspection contingency time frame where she could walk away. So it just like kind of left us in limbo and then walked on the deal, which you know, it happens, and but it really leaves you as a listing agent and the seller sort of reeling because you lose that momentum. Very frustrating. We we've definitely had a few deals sort of kick out this year, and like, off the top of my head, I can't really think of all the reasons. I think that the financial side of things usually, you know, if we're working with buyers, I'm sure you do this too. If they're getting financing, you make sure that they have all of their numbers in order before they even write the offer, right, because the worst thing is to get them under contract. Then they go to check the rate and lock in and they're like, oh, this is way more than I thought it was going to be, So we do that first. So but people people walk on deals for all kinds of things. Yeah, I actually unfortunately had to that did kick out. There were two buyers and one was an inspection and she there were some pretty hefty things in the inspection like roof issues, some HVAC issues, So it was one of those things where she thankfully we had the inspection, and you know, she was getting no mortgage, she didn't have a...

...ton of cash, she's you know, younger, so she was just like, I like, I cannot do this, you know, financially, it doesn't make sense. And the brain news for a listening agent, they love to get that report. Well exactly. Yeah. The listing agent was like, well, you know, we'll we'll fix everything, and she was just like, no, you know, I'm getting really bad vibes from this house. And so unfortunately now that listening I think I know that they dropped the price significantly, and then I don't think that it ever actually went under contract. Did you share the report with the listening? They asked to see it, and they asked to see it because because you know, we were at that point of negotiating of negotiating and he wanted to see everything. And I was like, okay, like you're you're telling me you want to see this report. So yeah. It was also interesting too because she when we when at the time of the home inspection, there was a neighbor outside, and I think that this gets into a whole other thing where the neighbor then started talking to her about, oh yeah, we had to redo our roof too, and I know they had to and they had to, so all of these things were in the buyer head of like the reality of the reality of what was going on, and so you know, it was Yeah, it was just one of those situations where really we couldn't make it work. So yeah, that story leads me and reminds me of something that's ongoing right now. I had an inspection on a property on Monday in Alexandria, and I walked through this house with this buyer. She'd seen it once then I'd previewed it. Then we went together and I started pointing out all the things. I'm like, I could see a lot of stuff just in my own eyes, and I said, this is this, this is this, here's water this, and she was like, okay, I understand. We ended up somehow in a multiple offer situation, a multiple offer situation on this property, even though it had been on the market for like three months, and we still got it below asking. But we did the inspection and it was not I mean to use the word nightmare is really dramatic, but there was a lot. You know, this house had a pool and it's like you lift up the sort of border cap stones around the pool and it's all corroded, like nothing had ever been maintain, aimed or sealed properly. I mean really gross. So the pool alone, you're looking at like, well, that pool's done, and then the roof done, like all kinds of stuff. And she was like, well, this house isn't worth what I thought I was paying period, So we'll try to go renegotiate. But based on the way the original contract negotiation went, I don't know. I don't think we're gonna get there. You're in the process of doing that. Now I am waiting for her, the buyer, to give me the okayf for how to proceed. So if like the listing agent asks to see the inspection report, you know, like, can may I send it? I don't just want to a never just want to send it over. That's like really bad form and it really belongs to my buyer. So even if the agent asks to see it, I still have to make sure the buyer is okay with that. Should we go into why that for the inspection you don't just send over the inspection report to the other agent. Well in this in this situation, because the way the contracts written, it was just a walk away closet, but there was no negotiation an aspect to it, even though it seems like we're heading in that direction. So in that case, since I'm not obligated by the contract to send any report, it's it's it's definitely it's not even an option. I wouldn't want to receive it if I was a listing agent because then there might be items too that I have to close in the future or get my seller involved in repairing. And I've been on that side of the equation too, and that's a whole another world of liability. Yeah, that's not fun at all. We had an inspection recently. We represented the seller. The buyer did an inspection and they were sending me photos. I think there's mold done here, and I'm like, I didn't even respond because, like, you're not a cold inspector. If I always tell people this, like a genital inspector is like your primary care doctor. If that doctor tells you have a heart problem, you're gonna see your cardiologist. So if the inspector tells you there's mold downe here, well let's get a mold inspector out here to verify that. It's not like some you know, dirt or fungus or but their fungus as mold. But you know, I hear you, yes, that that happened on um. This was a small condo at four thousand Ton law. I was representing the buyer. We got the inspection from the general inspection and they found a leak under the sink, and you know, just as an inspector does, says like potential for mold. And so my client got really freaked out. She was like, I don't want mold. You know, all of this stuff, and she, you know, was getting to that point of like what do we do do I you know, back out of this? And first of all, it's like this is the smallest thing ever, Like we're not backing out because of a small leak. We can get that fixed. But then we did. I had a mold person come in and look at it, and he was like, oh no, I mean these cabinets don't even you know, they're not would there would be no mold here. So I was just so thankful that we actually went that extra step and got someone in to just say absolutely not, there would not be mold here. And she was like, oh, perfect, Okay. So sometimes like those extra steps feel completely unnecessary. We we see so many prop reason we're like, you know, I've seen that a...

...million times. It's nothing, or even when it is something smaller, like it's still not a not anything to get worried about. But our buyers as consumers, they don't they don't have that experience. And again first time homebuyers, so yeah, they don't have that in their repertoire of get get a specialist, just you know, so much easier. Yeah, exactly. Alright, So we're moving on to the next story here. This is from Redfin News. Now it's interesting I noticed that Brent, you brought some stories here from both Zillo and Redfin. Now those are huge redfinds sort of a competitor, I guess and Zillo. We all have our thoughts about Zillo, but these people have all the data. Literally, they have all the data. So they have economists working like PhD economists in the background looking at clicks for reviews. All of that jazz on what consumers are looking at on their platforms. And these are two of the largest platforms when buyers are looking or sellers are looking for property. I mean, they're they're worldwide known, and they're very user friendly. Southern these international reality is amazing. Compos Washington, Fine Profits. All of our competitors are great. But to me, these two platforms are great as consumers and they're back in data hich is great just to pulling that and sharing with clients. Well, then they're aggregating all of the data in real time from sales, tax records. It's and it's all. It's amazing when you look on Zello, how much information is right there in front of you. When even if we go on our own MLS system. It's like we gotta go through a couple of different clicks to look get what we're looking for. I was side story here. I was up this morning and I was playing around with MLS. I have to go back and look at it. But it was like a run report in one of the statistics sections, so you can. I was looking at homes between one five and three million because we have two places on the market, a condo in a house in downtown one and logan and want to dupup. But it created as long report as far as average day is on market for that property, how many showings for that property until it goes on a contract. I mean, it was like a long, lengthy and I never even knew it existed. MLS. It is great data, but it's like clunky to get around agree. You just have to kind of find out your stuff versus having Zillo redferend just print out the data. Yes, it's going to be on a more national level, but it's easier to get to agree. So the headline perspective home sellers and buyers retreated as mortgage rates approach six new listings spell eight percent in August to their lowest level since prior to the onset of the pandemic. The last time so few homes hit the market was August, so a long time ago that I don't even remember. So we're looking at median sales price a sort of dropping month over month, but still up year over year. Obviously a reduction in homes sold in this encapsulated momentum. You're over your almost less home sold in that month of AUGUSTA. I don't need to go into all the numbers, but they're trying to tell the tale here. So yeah, if you if you look at the RBIs ats that are firms shared with US, there's numbers in there, but what the red Finn data shows you in this article is almost spot on from the RBI stats from just the Washington d C. So to bring it back to a local level, I mean, the new listings in nineteen were eighty six and twenty it was twelve seventy eight, and then last year seven new listings in August, and then this calendar year eighty five, so it's it's very spot on. I mean, it's decrease versts eight and even look, you just mentioned the units sold seven units sold in August of nineteen and then last year there was seventy four units sold in August, and then this year six decrease from year over year, just looking at August. So it's more on a local level. Okay, So I look at these data and I there's no question there's a big that's a big change in numbers percentage wise. But going back to what we're talking about originally that this is like August numbers that are final. It's September now, right, more people were traveling this summer, interest rates were going up, so just less activity in the summer. I feel really fortunate. I just want to, like to my own horn here. I had like five great sales in August that all happened when I was on my way to the beach, Okay, like literally like they like one buyer want to write a contract another like it all happened at once, And I was like, what a fortunate August because August can be really slow in our market traditionally, and I think this. I think our August here locally was more of a standard August because of the people traveling burnout right right, yeah, I think a lot of people. Again, everyone has a different take, but no one has a crystal Ball. But I do think that moving forward, we're going to refer back to twenty nineteen, maybe eighteen some of the data that we're looking at as far as units sold, average days on market. I'm not going to say the prices are gonna refer back to nineteen because then you you don't account for any appreciation whatsoever. But I do think that we had two...

...generational years, and you know, from the start of the pandemic until you know, Memorial Day of this calendar year. I don't think we'll ever see that again. So I think that that's people have short term memory. So before you know, it was the seller's market, you get a listening, it would sell in a day, and now it's a complete opposite where you have to work a little bit harder. Howeverage days on market is going to go up. You have to do more than one open house, so it's it's hard time to shine in the for the sellers. Like I have some new condos coming on the market soon, and the last time I had these units from this developer, these are on like Rhode Island Avenue in your North Capital Street, and spent many sundays over there waiting to get a contract for those condos, and I think it's I'm gonna be at these condos. Similarly, I'm gonna be there a lot of sundays just trying to get some activity going, just based on how I feel about our market. And it's just that's the way the business is, you know. But Leslie, like, I like what he's had. These are two generational years, and you're like, well, shit, I just got into the business. I just started. I didn't have my client list all ready to go for the big generational years. I know. I think it's it's definitely gonna be interesting. And I think what I go back to is just, you know, it's you know, in any sales job, it's okay, what do you do now when it gets a little bit slower, And so it's just going back to the fundamentals. I think it's fascinating and great that it seems like every group is going to do their fall party or something, and it's that, you know, getting back out there too. You know, it's our phones aren't just going to be constantly ringing, So how are we generating the business? And that's going to be you know, these in person events. I think a lot of people on our team have done a neighborhood event like the ice cream truck, and those are great, just getting out meeting people and doing those things that are going to set yourself apart to continue to be successful. Right And also just so you know, it was just only been about like sixteen years between those generational moments like the last the last one where I was like, wow, making money seems easy because two thousand's five and six, right, so count the years. That was fifteen years where the market needs a cleansing, so to speak, where you get rid of matter appraisers, lenders, agents, title companies. But again, when we were in two thousand eighteen nineteen, no one thought the bottom of the market was falling out. I mean, it was still solid years. So I just think that people have short term memory where they're looking for the past two years between nineteen was good. I mean, we were still having a great year, bannery year for us in our group, and as Leslie pointed out, you just have to kind of go back to the basics, whatever that is, if it's flyers, if it's door knocking, if you're going after expires with drawings, because I think there'll be a lot of those before, buyers would fire their agents because they couldn't get a house because they kept getting out bid. Now I think you'll see sellers getting upset because their house and selling a month, like what are you doing wrong my house? My neighbor's household back in March, multiple offers in a week, you can't get mine sold. So it's you know, how you do businesses is key. You gotta kind of retool and rethake and dive in deep. And I think, at least for me, I still am you know, meeting people that do want to buy homes there. You know, I don't think that people are you know, that scared away. I think it's just more of like they are now interested to see how the next few months shake out. And a lot of people are like, we're going to revisit this in January and in the springtime. So Max pointed out two years in the business, when that buyer comes to you and it's like the rates gone from two and a half to six, what do you say? So, you know, I think it's looking back at right. Yes, those rates have certainly gone up, but overall that's still a good rate. You know, there was a time when rates were at twelve percent fift pcent. I mean what that was many years ago. But overall rates are still low in the scheme of things, and so it's just shifting that mindset of like, no, you're not going to get a two point eight five percent rate anymore, Like that was once in a generation and we know that. You know, that wasn't great there. You know, there are reasons. There's you know, now inflation, all of these things, and it's just correcting itself and it's it's still fine. You guys both are the one of you seeing the buyers dropped their price point they were looking at a million because rates another dight, or they're finding different loan programs. You know, they're not doing a thirty year fixed or doing a interest only or ten and one arm. I mean, I made the suggestion of buyers to look at all the product options and make the decision that's best for them. I'm not giving him wanting a financial advice, but I explained to people that adjustable raymortgages, if they have the down payment requirement. You know, that was really common for a long time to just try to keep your payment down or find like an interest only product, just something to sort of bridge the gap between this point and whenever. Rates are seemingly a little more normal to buy a thirty year and some people understand that, and some people are like, well, I, you know, I don't want to do that. It's too sketchy, Like what if the payment goes to the It's like, fine, I'm not here to like sell you like a loan product.

I'm just saying that was pretty common for a long time before you were in the mixer. So and then as far as like people shifting their parameters with their price ranges for the the market is like, yeah, the rates are changing quickly, but it's still the time between when people started looking. Maybe some buyers that I might have like for a month ago two now, it's not shifted that much. I mean, really, if they if they were looking a year ago and now, and I do have buyers that are still on my list of getting updates and I check in with you know, my follow ups, and they could have bought anything they were they were looking in one then early and they still haven't bought anything, So they must be looking around going, Um, I either missed something. I'm waiting for the market to drop or bottom out, you know, how is that going to happen? And scoop something really cheap not gonna happen. So I don't know what they're thing, send them out a cooper or any of that, any one of those auctions like a bank auction. So by the time this episode drops, this will be on Monday, and today is Wednesday. In the FEDS meeting today, all projections are that they're going to bump the right another three quarters point. Stock market has been going down the past couple of weeks, but the stock market has not seen a bust over the past that game, so the market is still going good. Quarterly reports come out at the end of this month, third quarter reports, and a fourth quarter to end of the year. I think that there's gonna be some of these companies are gonna miss their targets. So I think all of this all in all, it's on a national level, on a macro level, it could trickle down to where three could be again a different year for US agents. I think it'll be going back to eighteen or nineteen. People still need housing. That's the thing. We're in a We're in a national town, international town. People like Washington. It's a transient city, so there's always people coming and going. It's just a matter of at what price point and what activity is going to be taking place. Sure, yeah, you know, we talked about the stock market like it's yeah, we wouldn't call this like like a real bust or a break. But I was definitely looking at my you know, monthly returns over the last six seven months, it's like, yikes, I shouldn't look here, you know. It's it's so I think that that definitely affects the way people think about things. But for now, regardless of that rising interest rates, I'd say the activity that's coming through my office is right on par with what it's been. Um, I don't think that, like, let's just say, some of these condo listings that we have would have sold any more quickly even six seven months ago when rates were lower. Just like just I know the product. I mean, we've been doing this a long time, you know, I don't know. I mean, we'll just have to see what continues to shake down. If we're in a recession now or we're going into a worse recession, will just we will be here on the podcast I was talking about that, you know, in another quarter. Well, and I think now more than ever. It's definitely that who you're working with matters when it comes to real estate, and you know it's the who's going to price this correctly in order to get it sold the quick gest right, Well, you know there's no there's no magic dust sometimes, right, you just we get like you're saying, you gotta go back to your entire toolbox, all the things that we know to do well on the listing side, presenting these listings in their best light, making sure our sellers understand everything from staging to cleaning up to all of that stuff. It just it matters even more that first impression. Probacing is a listing agents difficult. We have yeah, three listening presentations today and it's just it's it's a little difficult to price because if the neighboring house sold for a million dollars in March and it's the exact same house, can they come on for a million fifty or one one? In the past, that was an easy, that was slam book. Yeah, we're you come on and just try to get it to move. Especially for the past decade, I've always thought that falls a little slower. I mean, it's still active, but it's slower than spring and early summer because I think people come back. They're back into the school The people that I'm working with their back into the school systems. They're back into the fall grind. They've been away for all summer. All of August. Houses are still trading and people still need a place, but it's just a little bit slower than the spring. I've seen a few properties come on the market in the last couple of weeks, fee simple properties, some townhouses like one in Georgetown, one in DuPont, and then some other stuff in like our Northwest neighborhoods, where I actually thought the list price looking like looking through the photographs, looking through the square footage stats, knowing the location, I was like, that list price seems reasonable, you know, and also knowing that it's probably not going to get twenty bids and go five thousand over asking. So I think people are adjusting their expectations. Hopefully sellers are going to listen to their agents in terms of being all you conscious enough to get...

...things sold in reasonable time, rather than looking at the last listing you know on your block from six months ago. Yeah, well, and the expectation of okay, we listed at this price, your we might get that list price and like that's a good thing. You know, we should be happy about that, rather than yeah, looking back a few months ago, being like, well, why didn't we get three other offers and have this escalate so much higher? One last topic though, that we didn't talk about price reductions much more common right now for I know you you guys are like a powerhouse team and never need to reduce everything. Everything sells in one hour, right with price productions, I mean I've been doing a lot of price productions lately. I mean my sellers are like I'm getting showings, I've got my feedback and no action and a week goes by, two weeks ago by. It's like I'm having this conversation regularly with every seller. Are you guys also doing this we had I had with our client database, with our active listings, even things that are coming on the marketcause sometimes you met with the seller in July. Let's like wait till September, house ready, all that come on after a labor day, So now you have to readjust our price before it even comes onto the market. But yes, we're having those conversations actively currently with our clients and always tell people this. It's like whatever happens first, it's thirty showings or thirty days on market. By that time it's been on the market long enough for someone to buy it. Or if you have thirty showings in two weeks, there's been enough people coming through and indirectly they're telling you the price is too high because they found something somewhere else. And these are I'm not saying thirty people to an open house, but thirty people with an agent. There's our active buyers, real buyers, and they found something else that's better. Yeah, that's pretty much how I do it. Maybe not like thirty or thirty. I like that though. That's everything I do is sports. That's fine. That's it translates Leslie and Brent. Thanks a lot for doing State of the Market. Anything else, Leslie before we go, No, just thanks for having me back. I always loved talking with you guys. It's fun and I enjoy with the round table discussion we had our group meeting. Was it Tuesday. We're doing the same thing talking about the market, talking about things we can't talk about online, things like that. So it's good to sit down and talk with agents about what's going on. In their marketplace and kind of pick up tips and tricks, which is also why we do the show, listening to our counterparts across the board, what's working well for them and what's not working well. Right on, Well, see you all next week. Thanks for listening to keed In with your hosts, Max and Brent, unlocking the minds of the industry's top real estate professionals. For more information on selling your home, find us online at keyed in podcast dot com. Remember to subscribe to keyt In on Apple Podcasts or wherever you like to listen to podcasts. Follow us on Instagram at key dan Podcast, at Raven Max and at Brent Eve Jackson, and follow Max on TikTok at Maxwell Raven Underscore Properties m hm lsstssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss.

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