Market Daily

Home Sales Resilience Despite Market Challenges

Image Commercially Licensed From: DepositPhotos

A Closer Look at November’s Real Estate Landscape

In the dynamic realm of real estate, the month of November showcased a surprising resilience in home sales, defying the concurrent challenges posed by escalating property prices. The comprehensive monthly report from the National Association of Realtors (NAR), unveiled on a Wednesday, offers valuable insights into the intricate dynamics shaping the current real estate market.

Home Sales Inch Upward Amidst Persistent Price Escalation

Despite the persistent surge in home prices and prospective buyers grappling with the highest mortgage rates of the year, existing home sales managed a slight 0.8% increase in November. This encouraging upturn, breaking a five-month decline streak, resulted in a seasonally adjusted annualized rate of 3.82 million units.

A Comparative Analysis of Sales Trends and Yearly Shifts

A comparative analysis reveals that November’s sales figures depict a 7.3% decline from the robust 4.12 million pace observed a year ago. It’s noteworthy that these figures primarily capture the market activity in October, preceding the recent decline in mortgage rates, as stated by Lawrence Yun, NAR’s chief economist, in an official statement.

Unpacking Affordability Challenges Amid Record-High Prices

The real estate landscape finds itself grappling with elevated prices, coupled with a 30-year fixed-rate mortgage nearing 8% in October. This convergence has created an unparalleled lack of affordability in the market. The median price for existing homes in November reached a historic high of $387,600, exhibiting a 4% year-over-year increase and marking the fifth consecutive month of such increments.

Regional Disparities in Price Growth

Delving into the swift growth in prices over a relatively short period, regional disparities come to the forefront. In the Northeast, prices surged by an impressive 42%, in the Midwest by 35%, in the South by a striking 50%, and in the West by a notable 47% since November 2019, just before the onset of the pandemic.

Understanding Market Dynamics and Buyer Behavior

November indicated a noteworthy shift in buyer behavior, with 19% of homes selling above the listing price, signifying a subtle easing of competition compared to preceding months. The properties stayed on the market for an average of 25 days, reflecting a modest increase from October and November 2022.

Navigating Inventory Challenges and Category-Specific Trends

The lower-priced home sales, specifically those under $750,000, faced challenges due to inventory constraints, while higher-priced categories witnessed commendable growth. High-end categories also experienced more concessions in prices, underscoring the persistent issue of insufficient inventory plaguing the real estate market.

Emerging Trends: First-Time Buyers and Investors on the Horizon

November witnessed a notable uptick in first-time buyers, constituting 31% of sales, up from 28% in October and the corresponding month last year. All-cash sales accounted for 27% of transactions, with individual investors or second-home buyers purchasing 18% of homes sold in November.

Mortgage Rates and Future Predictions

With mortgage rates expected to decrease further in the coming months, industry analysts anticipate a surge in sellers, subsequently boosting inventory levels and facilitating more sales. The cyclical low point in sales numbers for October and November is seen as a precursor to a rebound in the real estate market in the near future.

Anthony Heiter: Elevating Real Estate in South Carolina

South Carolina’s real estate landscape is ever-evolving, and at the forefront of this dynamic industry is Anthony Heiter. In this article, we’ll deeply dive into the life and career of Anthony Heiter, a realtor who has left an indelible mark on the South Carolina real estate scene.

A Visionary Realtor

Anthony Heiter’s journey in the real estate world began with a vision to transform the real estate experience for clients. He aimed to facilitate transactions and provide an exceptional journey that would be cherished for years to come.

Mastering Local Insights

One of Anthony’s standout qualities is his profound local real estate market knowledge. He has meticulously studied market trends, property values, and neighborhood dynamics, equipping him to guide clients with precision and insight.

A Network of Excellence

In real estate, having a robust network of connections can be an invaluable asset. Anthony, a seasoned professional in the field, has dedicated himself to cultivating a diverse group of experts, including mortgage brokers, inspectors, and contractors. This extensive network ensures that his clients have access to top-tier professionals and streamlines the real estate process, allowing for greater efficiency and ease. With Anthony’s connections and expertise at their disposal, his clients can feel confident in their real estate dealings and rest assured that they are in capable hands.

Putting Clients First

Anthony prides himself on his unwavering commitment to ensuring his clients’ complete satisfaction. He deeply understands that purchasing or selling a home is not just a mere transaction but a life-changing event. Anthony is known for his exceptional ability to actively listen to his client’s needs and concerns, maintain clear and concise communication throughout the entire process, and work tirelessly to exceed their expectations. His clients can rest assured that they are in good hands with Anthony, as he consistently goes above and beyond to provide them with the highest level of service and expertise.

The Anthony Heiter Impact

Anthony’s impact on South Carolina’s real estate industry is undeniable. His passion, expertise, and commitment to his craft have garnered acclaim from both clients and peers. Yet, his ultimate success is defined by the smiles and satisfaction of his clients.

An Inspirational Figure

Beyond real estate, Anthony Heiter serves as an inspiration to aspiring realtors and entrepreneurs. His insights and wisdom regarding real estate as an investment have been featured on platforms like Talk to Tucker and Industry Elites, where he imparts invaluable knowledge.

In the realm of real estate, Anthony Heiter stands as a paragon of excellence. His journey from a visionary realtor to a trusted advisor is nothing short of remarkable. His unwavering commitment to client satisfaction, profound understanding of the local market, and expansive network make him a true luminary in the South Carolina real estate arena. Anthony Heiter is not just a realtor; he’s a transformative force, a mentor, and an inspiration.

To learn more about Anthony Heiter and his illustrious career in real estate, visit his website, anthonyheiter.com. Stay updated with his insights and updates by following him on social media.

How Real Estate Investors Can Find Money to Buy Properties

There is an old saying you’ve probably heard that “it takes money to make money,” which is true. But that money doesn’t necessarily have to come from your personal bank account. 

I discuss many of the different ways you can invest in real estate in my book, Replace your Income: A Lawyer’s Guide to Finding, Funding, and Managing Real Estate Investments. There is no magic number that you need to have set aside for real estate investing before you get started. You can actually have no money to start, and while that isn’t one of my top recommendations, there are ways to do it. Here are just a few of them:

Find a Partner

The simplest way to obtain an ownership stake in a property without any money of your own is to find a money person – that is, someone who has money to invest, but who may not have the time to take care of all the other tasks associated with finding, buying, and managing an investment property. That’s where you can contribute. If you are not bringing money to the table, here is what you can do:

  • Drive neighborhoods in search of potential properties to purchase
  • Regularly combing MLS listings to see what’s available or new to the market
  • Sending out mailers to property wonders in certain areas
  • Underwriting a property to make sure all the numbers work and that the property has profit potential
  • Renovating a property to get it ready to rent or sell
  • Cleaning a property in between renters
  • Managing a property to keep it in the best possible condition and ensure that tenants or renters are happy

Find a deal

How do you find such a deal? There are a number of places where you can connect with people who may need your time and skills, such as:

  • BiggerPockets Meetups
  • Local real estate investing group meeting
  • Facebook groups for real estate inventors
  • Local real estate agents and property managers

These are just a few starting points. You need to create your own network of people who can refer you to investors who need property managers or maintenance people, or who need someone to check out a neighborhood or property. That can be formed through your existing friends and acquaintances network. 

Another way that someone who doesn’t have money to invest can contribute and earn equity is by managing the property once it’s purchased. If you’re the property manager, you’re the person who picks up the phone when tenants call about a leaky toilet or a refrigerator that won’t keep food cold, as well as the person who goes to investigate and repair the toilet and refrigerator, or who makes arrangements for someone else to come out and repair them. You’re the laborers, while your partner is the money. In exchange, you’ll receive, on average, about 5% of the profit each month, or whatever percentage you’re able to negotiate. 

Crowdfunding

If you have a little bit of money to invest, you might want to consider crowdfunding platforms like Fundrise, which allow individuals and businesses to pool their money together in order to finance larger purchases such as real estate properties. Using these platforms, anyone can become an investor by contributing any amount they choose, from small amounts all the way up to large sums of money. 

Crowdfunding provides several benefits for real estate investments, including quick access to capital, low barriers to entry, limited paperwork and compliance costs, and reduced risk due to diversification among multiple investors. Additionally, it enables more people—including those without the financial means—to participate in real estate investments that would otherwise not be accessible to them. Finally, it allows you to leverage your network of contacts by tapping into their expertise and connections, which can help you find better deals or better manage your properties once purchased.  

Best of all, no previous experience is required. One of the biggest advantages of using a platform like Fundrise is that you don’t need any prior experience or knowledge in real estate to start investing. All you need is an internet connection and the willingness to take a risk on an investment opportunity. The platform provides you with all the tools and resources you need to get started, including a comprehensive overview of each investment opportunity and detailed information about expected returns and risks. This makes it easy for even beginner investors to get involved in this lucrative market without spending too much time learning the ins and outs of real estate investing. 

Ask 

Remember, when it comes to real estate investing, you don’t have to have a ton of money set aside in savings, but you must ask people about deals. Don’t sit on the couch; get out there and meet people through Meetups, at the gym, or at the coffee shop. Real estate investors are some of the best people you can meet; they want you to succeed, so tap into that resource and knowledge and ask. You can get in the game with very little, so look around and take advantage of those opportunities that are just waiting for you. 

About Brian T. Boyd, Esq.

As a lawyer in Nashville, Tennessee, Brian Boyd helps clients with real estate, construction, and business matters. It is with that knowledge that he and his wife, Dawn, have grown their portfolio to a six-figure income. Brian earned his BA from the University of Tennessee—Chattanooga, a JD from Samford University’s Cumberland School of Law, and an LLM in Taxation from Georgetown University Law Center. When not practicing law or working with Dawn on their real estate ventures, Brian can be found on the Brazilian Jiu-Jitsu mats at his local gym. His newest book is Replace Your Income: A Law