TIMING THE MARKET

BOTH HOLLY AND JOLLY

It’s the Most Wonderful Time of the Year

Y’all might be done for the year when you open this email and if that’s the case, I hope everyone can relax and enjoy the holidays! I hope you’re surrounded by people you love the most! I hope there’s cookies and good cheer and mistletoe! I hope all your dreams come true! I hope every sentence you speak or write merits an exclamation point—or two!!

Of course, if you’re like me, there’s a little piece of your brain that never stops thinking about real estate, regardless of time of year. That’s why today’s topic has to do with timing the market and practicing what we as agents preach. So let’s get to talking!

THE REALITY OF REAL ESTATE

Did Christmas Come Early?

As tough as this year has been for so many of us, we’re starting to see positive signs for what’s to come in 2024. For example, Goldman Sachs just upped its 2024 forecast because of the recent market surge. They now see the S&P 500 going to 5100, up from their original estimate of 4700.

If that weren’t enough, gas prices are dropping because of supply and experts are predicting more stability in 2024.

The cherry on top of this news is that the prices for appliances, flights, and automobiles are going down, too.

Now, is the stock market the real estate market? No. Is the price you pay at the pump the real estate market? Again, no, ma’am. Is the cost of the 2024 Lexxus you’re going to buy your spouse the real estate market? No, and please don’t give your spouse a new car payment for Christmas, unless they specifically ask for that new car, adorned with a giant red bow.

What is important is that these are positive signs. Positive signs impact everyone and they are exactly the kind of signs your buyers have been itching to see.

Now, I’m not saying these signs are a Christmas miracle, but I’m not saying they’re not.

And do remember this advice as you finish your holiday shopping…

@glenndabaker

Those Jordans and that name brand pocketbook may be costing you the dream of homeownership. #GlenndaBaker #RealEstate #AtlantaRealEstate #... See more

STORYTIME WITH GLENNDA

In the Words of Mariah Carey, It’s Tiiiiiiiiiime!

Here’s what I tell every one of my buyers—stop trying to time the market. So many buyers are waiting on the sideline, staring at the market like it’s a game of double Dutch, trying to calculate the exact right second to jump in so they don’t fall flat on their faces.

Well, guess what? Now. Now is the time.

Sometimes we real estate agents don’t have the best credibility, and that is a whole different conversation. Our clients might not believe us when we’re telling them to buy. They suspect we’re not practicing what we preach. We’ve been advising them to jump in when interest rates have been so high, but it’s nothing we’d do, right?

Wrong.

At the end of October, when rates were at the tippy top, do y’all know what I did?

I bought a house.

Maybe you’re thinking, But you’re fancy-schmancy, Glennda, and you paid cash. Nope. I did not. I bought an investment property and I put down 25% and then I financed the rest at a rate of… 8.125%. Yes, you read that right.

You know why? Because I found the right house in the right location that I could afford and that met my needs. The caveat for me—and everyone else—is that if you can afford what you’re buying now and you never put yourself in the position of having to sell, you won’t lose money, regardless of interest rates.

Year ago, my mom worked for a man named Mr. Moore. Mr. Moore was responsible for all kinds of development in Atlanta. And you know what the interest rate was back then? 18%! And folks couldn’t buy his properties fast enough!

When people are secure and they have a need, they buy houses. So I’m not telling my buyers anything I don’t believe or know to be true. Again, this house meets my parameters, so I bought it. It was what I wanted because it’s in immaculate shape and in an amazing school district. I can make the payments. When the time comes, I will refinance and I will make additional payments to the principle to reduce the life of the loan. I will own this house until Gabriel blows his horn.

But if I ever do sell, it’s because the market will be so high that I can’t say no to the deal, so praise the Lord and pass the money.

Time the market to sell, not to buy.

Ultimately, I was not about to let the media scare me out of making a purchase. You shouldn’t let the news scare your buyers, either. If they wait until January or February, they’re going to find themselves facing stiffer and stiffer competition for a property they could buy today. I mean, if I’d bought this same place last year, the interest rate would have been lower, but I’d have been in a bidding war and I’d have to pay 10-15% more. Same would be true if I waited until spring. I bought when the time was right.

So this holiday season, give your clients the gift of the upper hand, and educate them on the benefits of now versus later.

GLENNDAISM

Mantra of the Week