DID YOU KNOW?

The average 30-year fixed mortgage rate increased 14 basis points to 3.69% this week, its highest point since the first week of 2020. The US economy - and inflation -  is over-heating and higher interest rates are designed to reduce demand and moderate unsustainable asset price escalation, a global issue. (Barrons)

Almost a third of home buyers experienced two buying regrets the most: the home was not large enough and they did not account for the amount of maintenance a home requires. In this lies enormous opportunity and insight for real estate agents to help assist and guide their clients. Do you provide your home buyers with a list of vendors and a calendar of 'things to do' throughout the year' to maintain their home? Do you label all those shut off valves and mechanicals for your home buyers....maybe on a laminated card with your name and contact info? Opportunity knocks....

Is Palm Beach the MONACO of the US? 2021 Palm Beach residential home sales volume reached $4 billion, up 67% from last year and more than the 2019 and 2020 dollar volumes……combined!  Aspen, another top luxury market, reported $2.5 billion in sales in 2020 and $2.6 billion in 2021. The median price for a home on Palm Beach Island reached $7.9m, up 44% from last year. We also saw Palm Beach waterfront sale prices double, with an entry-level price for a Palm Beach waterfront home now approximately $20m. Thanks Elizabeth DeWoody of COMPASS Palm Beach for these insights!

While solar and wind sources, along with electric vehicles, attract the most attention right now it may be LED lighting, insulation and other practical fixes that will help flip buildings green that may be more immediately effective. Energy efficiencies that reduce consumption (and operating costs!) is an area that unites both the free markets community and those seeking a carbon neutral world. (Marketwatch)

Inventory Insights
The vast majority of agents around the country - and their buyers - are bemoaning the limited inventory of homes to buy. The reasons for this are many including:

1. The US has been under-building by millions for over a decade.
2. Most builders have focused more of their efforts on more expensive, more profitable homes.
3. Tons of Cheap money - and borrowing - has allowed people to pay more and fuel excessive price escalation in areas causing huge demand.
4. Institutional investors and i-buyers are competing with 'regular' home buyers further depleting inventory.
5. Wealthier buyers buying multiple homes. One person owning 3 homes equates to two fewer homes for other buyers to buy.
6. COVID-fueled migration from more expensive areas to cheaper areas of the US has driven prices up in those areas with increased demand AND buyers comfortable paying much more than locals.
7. Vast new wealth created from rapidly rising equity markets, crypto speculation, IPO's, new business creation, inheritance, wealth transfer, etc has created a huge new pool of buyers, many armed with cash.
8. The COVID fueled desire to nest and own a home has unleashed the largest buying audience - millennials - to buy instead of rent after years of holding back.
9. Empty nesters seeking smaller homes are competing with first time buyers for smaller homes.
10. COVID fueled a greater awareness of our mortality fueling the desire to get on with life.

In some areas the inventory 'on the market' is very low. But there is quite a bit of inventory trading that barely makes it to market - if at all - because it is sold before it comes to market. That inventory is not registering clearly. Off-market deals are growing and they are mostly not pocket listings. The vast majority of these deals trade with both a buyer and seller agent.

It is for this reason - now more than ever before - for eager buyers to work with a professional, connected agent who knows inventory and the agents in their community extremely well. Betty Broker who knows Adam Agent well can help buyers achieve their goals now more than ever. It is even more important now to message to your sphere just how helpful a connected agent can be. The rest of the world is telling them they DON'T need an agent.....and we know they are wrong.

Transactions on homes priced at $10 million or higher jumped 112% in 2021! Los Angeles led in transactions, followed by Manhattan and Palm Beach, as reported by Bloomberg citing COMPASS' Ultra-Luxury Report. The Ultra Luxury Report was also featured by major national news outlets including The Street, WealthX, Barron's and Mansion Global. These stories are packed with fascinating market data...I encourage you to take a moment to read and share this with your network! If you don't sell this price point, know the COMPASS brand is being featured prominently to millions of people associated with luxury real estate.....

• Bloomberg gets 76.4 million website visits per month
• Barron's 13.8 million per month
• The Street 8.4 million visits per month
• Mansion Global 1.6 million per month