This week, Byron Lazine and Nicole White discuss rising interest rates, reluctant luxury homebuyers and an Inman Marketeer.
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Byron Lazine and Nicole White are two agents in Connecticut who give us their thoughts on the week’s news every Friday in “The Real Word,” a weekly video column on Inman.
Byron Lazine and Nicole White began this week’s episode with a discussion of Inman’s recent article on the surge in mortgage rates. The overall consensus was 4.5 percent to 5 percent, but now as rates go past 6 percent agents are saying there’s still a lot of demand in the market. Lazine says that demand is far less than it was in December and January and if rates continue to rise, that demand will fall off.
People are bailing on deals that are already in the works while others are trying to lock in before rates go any further. White said, now’s the time to stay in those deals just to keep your already locked-in rates. Lazine says that the future for real estate in the next two years is not looking good with falls in crypto and the stock market plus out-of-control inflation. He also believes if you own real estate, you’re in the best position possible to preserve wealth.
Next, Lazine and White discussed a story in The Wall Street Journal that says luxury homebuyers are stepping away from the US real estate market. It details an 18 percent year-over-year drop in luxury buyers in Q1 2022. Lazine says the wealthy are reading the economic signs and holding off on big purchases in favor of picking up a bargain after the fallout.
Marketeer of the Week
The Marketeer this week is an Inman article on how agents still connect primarily via email. Lazine says that while email is good for CYA, calls and texts are the best way to generate leads and get your communication noticed. He also said that CRMs that integrate text communication obviate the need for much of the back-and-forth via email.