May 2021 Real Estate Update
May 2021 real estate market update, there’s a lot going on right now, super important to pay attention. That is luxury real estate broker Shana Acquisto. I’m Mike Acquisto in some of the things we’re going to talk about right now. Our sales are off the charts. They’re setting new highs all the time. We have great realtors that are becoming way more important than ever. It’s a real key thing that’s going on right land, way more valuable than ever.
Starlink Internet, that’s a real thing. It’s coming and it’s making a big difference in what people are choosing. Home builders are way backed up. Construction is slow. Supplies are out of stock building supplies. That is right. We have listing agents dealing with multiple offers and they’re just like stuck in this in this dull drum of what’s going on there. And following up, we have buyers, agents running all over the place, looking at all types of things fall out galore.
Yes, we’re seeing a lot of properties come back on the market.
Yes, we are. Shana, let’s pick it up and start.
All right. So sales are off the charts.Yes, they are.
And I think I heard last week in looking at everything that we have about three weeks of inventory
In a normal market. We would typically six months.
Yeah, six months is a balanced market. So we are way lopsided. The sellers are so happy that we’re in a in a market like this. I think that the sellers still have to go somewhere. So then they’re probably running into some challenge.
And we’re having it’s going to be very, very tough to kind of get back to normal on this one because we do have a lot of demand. So demand is up definitively, right? There’s a lot more demand and there’s less supply and less supply, specifically because new home builders kind of can’t build it. We have just so many more people moving around. We talk all the time about that, how people are moving to less dense areas and getting away from the city center.
We had we were talking with another person that has a son that lives in New York City, and they were saying what a deal he was able to get on his rent because everyone’s moving out of New York City. Same things happening with our son at Columbia. Right.
He’s like, hey, we’re able to get an amazing deal and move off campus and save money and move into a much bigger place. And he’s like, it’s unprecedented on the deals we can get. So it’s a very, very clear example of how people are moving away from the big city into something a little bit different.
And great realtors being a great realtor is ultimately important here, experience, knowledge and your professionalism. And if someone doesn’t have a realtor, this is our time to really shine and show our value. If someone doesn’t have a realtor, how on earth are they competing? Are they calling the listing agent? We can’t even get the listing agent call us back. So how is a buyer working on their own going to even compete at all in this market?
So this is a time to show your skills, let everybody know how experienced you are and you guys have such a leg up because we go over contracts all the time and all of these things that give you all these tools to be able to navigate through this process for your buyers. And I think it’s you know, I think it really, really gives you a leg up right now. And I think, you know, unfortunately, we were all new, brand new.
We even have brand new. Right. But it’s really important to have this network of a family that we can all bounce ideas off each other. How should I approach this and have the power of many to go out and and help your clients? But, you know, from the listing side, we see it. These contracts come over.
And we’ve been very clear about these are our instructions. This is what we’re looking for. And they come in nothing like what we asked for. And they said, well, my my client wanted to do it this way. Well, you know what that tells me? Somebody is not control. They hired you to be their realtor. You need to be the one that tells them this is how you have to do it and say it with confidence and then they will trust you and believe in you. And you have a much better outcome.
Yeah. Land way more valuable than ever. It seems like percent new prices with land and what it’s all worth and what people are willing to do, where they’re willing to build, how much more they want of it than they previously had. You know, it seems there’s a lot of people that are currently living on an eighth of an acre or a third of an acre, a quarter of an acre. And they’re like, you know what?
Wouldn’t it be better if and then they have a discussion right there, like chiefs, let’s kind of think about this so we see large pieces of land being brought down and having larger home sites available and people really, really demanding that. Mm hmm. Yeah, for sure. And a lot of that has to do with the Internet.
So we have Elon Musk and his Internet and Starlink Internet and Amazon’s working on their version of it feverishly. We’ve seen it work. We’ve had it reported up from right outside Yellowstone with Megan Rutherford. And she notes that it actually works up here. And we used to have a horrible Internet and now it goes from like two or three to like one hundred and fifty.
And it actually works up and down. And people like, whoa, I can live here and work here. So we’re opening up all these different regions that previously you weren’t able to actually work in that were considered more like cottages or ranches. But now you can actually move there and have something amazing.
It’s a great benefit to talk to your client about if they’re moving out. Yeah, we’ve had several people say, I don’t want to move out there. I have to work from home. And, you know, it’s too hard.
And then you’re like, no, but you can just wait. Right. So it’s coming south. It started up north and the bands coming down. And you can take a look at that one. We’ve done a bunch of previous episodes on Starling’s and the power that that brings. Builders totally backed up so many contracts. So, like, we’re not doing things like this anymore. And they’re making a ton of changes, mostly because of labor shortages, supply shortages.
And it would be another topic. But they’re pretty much cutting commissions as well.
So our new home builders, realtor allies, and we’ll discuss that in a very soon to be For you needs a topic of its own. I already have it in there ready for that one. I think that’s on the list for tomorrow, as long as we get there. And then we have listing agents dealing with tons, multiple offers. Right. So the listing agents, you have to be make sure that you pick great listing agents that are able to handle this. Yeah.
And then the buyer’s agents are running all over, but they need to be experienced as well so they can reach out. And there’s so much going on. And then when we have these combinations of not super experienced and not super experienced in the buyers, in the sellers are kind of coached and walked through it evenly and like in in a well done manner. And we have tons of fallout.
We do. And people are like, wow, I wasn’t really ready for this in like, hi, I’m getting cold feet and too much. Let’s step back all this. It was too fast. I wasn’t really ready and like, fine, I lost some money. But that’s better then, right? Yes.
And, you know, this is my favorite thing I’ve talked about for a very long time are backup offers. They’re so under utilized and it takes a little time. But, you know, everybody is so hung up over this first one and they all believe it’s going to work out. No problem. Sure. We’ll accept it back up. So try to get a backup offer in and you can scale it to have very minimal upfront costs and then a graduated additional earnest money down. So it’s not impacting your clients.
And again, I think that really comes back to being an experienced agent, working with somebody who really cares. It’s a huge, huge deal. If the agent you’re working with actually cares and is willing to go to the distance and says, like, hey, this is a good idea, let’s not just be throwing only primary offers and let’s look at some that might accept a back up off, of course, because they can each accept one.
Right now, you might experience a lot of agents listing agents like now, my seller doesn’t want to do that. Why not? I’m going to give you everything you want, right. Right now. So you have to educate them a little bit and say, hey, did you know that the fallout. Right, is this why don’t you do this? You don’t surely don’t want to go through this again, going through twenty offers.
So so also maybe consider fixer uppers or just wait just a little while and start on a build and just know it’s going to take a period of time. Yeah. And then agents, like I say all the time, an agent that cares and is willing to try and is good at what they do and is full time totally makes a difference every single time. Yes, for sure. It really does. OK, that’s the update. That’s a lot of things that we’ve never said before and an update.
Episode Links
Starlink Internet, Elon Musk, Amazon’s, New York City, unprecedented
