What's more important than the interest rate you're paying on a home?
It's the price you're paying for a home, obviously.
So when we're talking to our potential buyers, this is something we should be talking about with our social audiences, our sphere of influence, our farm areas, and really beating this drum that they need to refocus their attention on this idea that prices are coming down. And we have some real opportunities in the market.
The way we're gonna frame that up is gonna say:
"Hey, listen, a lot of people get really focused on interest rates. But I want you to start looking at price because some smart buyers that I know, some savvy buyers are really starting to get out there and find some incredible bargains. There's really two areas that I like to talk about with all my friends that I think are huge opportunities.
One of them is luxury housing. There's a 38% drop in the last quarter of 2022 in luxury home sales....
Here's an interesting question that we often get:
If I buy a house and sell a house in the same market, am I gonna give up some equity? Am I gonna make a mistake by doing that?
Well, generally when you're buying and selling a house in the same market, you're not gonna have any equity loss because you're just moving money from one house to the other. And actually in our current market, we have something kind of unique happening in a lot of areas of the country. Really it's a tale of two markets or maybe three markets.
But when you look at your market, it's not just one big market, right? It's broken down by price bands. And there's some price categories that are much hotter. They're much more active. People are much more engaged and that would typically be the lower price categories, right?
The first time home buyer categories. But as you move up that ladder to the second per home purchase, so maybe the starter luxury and the real...
Hey guys, interesting stat for you:
Luxury housing is soaring! It's up 81% from the number of transactions from last year to now.
Now why would that be?
The answer is if you look at the luxury housing market in most areas of the country, you could not build that luxury home for what you're paying for it today. Because construction costs and land development costs have gone so high.
When people with money are looking at these listings, they're saying, "Hey, wait a second. This is an opportunity. This is a market opportunity for me to buy, because I know I couldn't build it for the same price."
They're actually buying at a discount in their minds. Even though prices have risen, they haven't outpaced what it would cost to build these luxury houses.
So this is still an opportunity. It's a market space. And a lot of people haven't focused on it. But there's a lot of great, great buys within the luxury market space.
So check it out,...
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