The Real Estate Backstory is a web video series hosted by Alan and Ming Richardson, seasoned professionals in the real estate industry focusing on Georgia real estate news. Their goal is to keep real estate professionals informed about the latest news, trends, and changes in the industry. This article is based on the transcript of one of their videos, providing a comprehensive overview of the key points discussed. For a more in-depth understanding, we encourage you to watch the entire video here.
Back to School, Back to Work
As we approach the end of summer and the beginning of a new school year, Alan and Ming emphasize the importance of getting back into routine. This is not only applicable to children returning to school but also to real estate professionals. It’s a perfect time to revisit your business strategies, routines, and goals. Are you treating your business like a business? Are you ready to get back to work and achieve your objectives?
The Power of Online Reviews
A recent study revealed that 90% of consumers read online reviews before visiting a business, and 88% trust these reviews as much as personal recommendations. This highlights the importance of maintaining a strong online presence and actively managing your reviews. Alan and Ming urge real estate professionals to Google themselves and ensure their online profiles are up-to-date and filled with positive reviews. They recommend using Google My Business as a platform for collecting and managing reviews.
The State of the Real Estate Market
The real estate market continues to show strong growth, with no signs of an impending recession. Despite the Federal Reserve raising the federal funds rate, interest rates remain relatively low. The hosts also discuss the importance of understanding credit scores and their impact on mortgage interest rates. They provide a breakdown of credit score ranges and their classifications, from poor to exceptional.
The Importance of Homeownership
Homeownership remains a key feature of the American dream, and it’s the number one way for individuals across all income levels to build wealth. The average net worth of homeowners significantly outpaces that of renters, highlighting the financial advantages of owning a home. Despite the rise in rental rates, the desire for homeownership remains strong.
The Current Housing Market
The housing market is experiencing a shortage of listings, with inventory down 17% year over year. This shortage is driving up prices, with the median sale price for entry-level homes in Atlanta at $260,000. Despite these challenges, traffic to listings remains high, indicating continued strong demand.
The Role of New Construction
Interestingly, the average price of new construction homes has dipped below that of resale properties for the first time. This shift is due to builders responding to market dynamics and focusing on building more affordable, entry-level homes. This is good news for first-time homebuyers and those looking for affordable housing options.
The Future of the Market
Despite some concerns about potential market crashes and increases in foreclosure activity, Alan and Ming reassure viewers that the market remains stable. Foreclosure activity is still significantly lower than during the 2008-2009 housing crisis, and the percentage of homes considered seriously underwater is at its lowest point since 2019.
Conclusion
The Real Estate Backstory provides valuable insights into the current state of the real estate market and offers practical advice for real estate professionals. As we move into the latter part of the year, it’s crucial to stay informed about market trends, maintain a strong online presence, and continue to provide excellent service to clients. Remember, the full video contains even more information and context, so be sure to watch it here for a complete understanding.
