Monthly Archives: August 2024

Thursday, August 22nd, 2024 – As we approach the end of summer, all eyes in the financial world are on the Federal Reserve, with particular attention on the upcoming speech by Fed Chairman Jerome Powell at the Jackson Hole Economic Symposium tomorrow. Market participants are eager to glean any signals about the central bank’s next moves, especially as speculation around potential rate cuts heats up.

Current Expectations for Rate Cuts

According to the CME FedWatch Tool, which we\’ve written about previously, market expectations for rate cuts have been fluctuating throughout the year, driven by shifting economic data and evolving inflation trends. As of now, the tool suggests at least three 0.25% cuts this year, in September, November and December. It is also suggesting that there is also the possibility of a 0.50% cut in September, instead of a 0.25% cut, and a higher chance of a 0.50% cut, instead of a 0.25% cut, in November and December. This sentiment is largely fueled by signs of easing inflation pressures and concerns about potential economic slowdown.

Jerome Powell’s Jackson Hole Speech: What to Expect

The Jackson Hole Symposium has historically been a stage for significant policy announcements, and this year’s event is no different. Jerome Powell’s speech on Friday is highly anticipated, especially given the uncertainty surrounding the Fed\’s next steps.

Analysts expect Powell to strike a cautious tone, balancing the Fed’s dual mandate of controlling inflation while supporting employment. Any hints of dovishness in his speech could further fuel market expectations for rate cuts, especially if Powell acknowledges the recent softening in inflation data or signals concerns about economic growth.

However, Powell is also known for his careful communication. While he may acknowledge these factors, he could also emphasize the Fed’s commitment to bringing inflation closer to its long-term target, suggesting that any rate cuts might be more gradual than markets currently anticipate.

Implications for Real Estate Investors and the Economy

The Fed\’s rate decisions have broad implications for various sectors, particularly real estate, where interest rates directly impact mortgage rates and, consequently, home affordability. A potential rate cut could be a boon for the housing market, potentially easing mortgage rates and spurring demand. Jerome Powell’s upcoming remarks at Jackson Hole will be crucial in shaping the narrative for the rest of 2024.

The recent settlement involving the National Association of Realtors (NAR) has introduced significant changes that affect everyone in the real estate market—buyers, sellers, and agents alike. These changes are designed to make the process more transparent and competitive, but they also bring new considerations for all parties involved. Here’s a breakdown of what you need to know and how these changes might affect you.

For Buyers: More Transparency and Flexibility

1. Clearer Fee Structures: As a buyer, you now benefit from greater transparency in real estate commission fees. Agents are required to clearly disclose how much they are being paid and by whom. This means you can see exactly what the seller is paying your agent, helping you make more informed decisions during your home search.
2. Negotiable Commissions: One of the most significant changes is the emphasis on the negotiability of commission fees. You’re no longer locked into a standard rate; you can negotiate with your agent to reduce fees, potentially lowering your overall home-buying costs.
3. Freedom to Choose Your Agent: You have more options than ever when it comes to choosing a real estate agent or brokerage. Whether you want lower fees or specialized services, you can shop around to find the best fit for your needs.

For Sellers: Control and Savings

1. Transparent Costs: For sellers, the new rules mean you’ll have a clearer understanding of the costs involved in selling your home. Agents must be upfront about their fees, giving you the power to make informed decisions about who you hire to represent your property.
2. Commission Negotiation: Just as buyers can negotiate commissions, so can you as a seller. You have more leverage to negotiate lower commissions with your listing agent and even the buyer’s agent. This can lead to significant cost savings when selling your home.
3. Choosing the Right Agent: With more transparency and competition among agents, you have the freedom to choose a broker who offers the best value. This might mean selecting an agent with a competitive commission structure or one who offers additional services that align with your goals.

For Agents: Adapting to a New Market

1. Embrace Transparency: As an agent, you’ll need to adjust to a new level of openness regarding your fees. While this may require more upfront communication, it also provides an opportunity to build trust with your clients by clearly explaining the value you provide.
2. Flexible Commission Structures: With commissions now more negotiable, you may find yourself in more frequent discussions about fees with both buyers and sellers. To stay competitive, you might need to offer flexible commission structures or additional services that justify your rates.
3. Increased Competition: The real estate market is likely to become more competitive as buyers and sellers become more empowered. To stand out, you’ll need to highlight your unique value proposition, whether that’s through personalized service, market expertise, or innovative use of technology.
4. Dual Agency Transparency: If you represent both a buyer and a seller in the same transaction, you must clearly disclose this dual agency relationship. Transparency in these situations is crucial, as it ensures that both parties understand the potential conflicts of interest and can make informed decisions.
5. Leveraging Technology with Bold Street: In this evolving landscape, technology can be your ally. Bold Street offers tools that can help you stay ahead in a competitive market. With Bold Street, you can streamline your marketing efforts, generate leads more efficiently, and enhance your client interactions through data-driven insights. This platform can help you to deliver top-notch service to your clients. By using Bold Street, you can differentiate yourself from other agents, offering a modern, tech-savvy approach that appeals to today’s informed buyers and sellers.

What Buyers, Sellers and Agents Need to Know

Whether you\’re a buyer, seller, or real estate agent, the NAR lawsuit settlement has reshaped the real estate market in ways that emphasize transparency, competition, and flexibility.

• Buyers now have more control over their costs and choices.
• Sellers can negotiate better deals and select the best agent for their needs.
• Agents must adapt to a more competitive environment but can thrive by embracing transparency, showcasing their value, and leveraging technology like Bold Street.

By staying informed and proactive, you can make the most of these changes and succeed in today’s evolving real estate market. Whether you\’re buying, selling, or representing clients, understanding these new dynamics will help you navigate the process with confidence and clarity.

On August 14th, 2024, Bold Street AI took center stage at a bustling brokerage in Gilbert, Arizona, where the team introduced their revolutionary approach to real estate investing. Hosted by Shane Dodd, the visionary broker behind Realty One, this special event provided a first look at the next phase of the real estate agent\’s journey: the Investor Agent Era. This session was not only attended by a great number of engaged agents, but it was also live-streamed on Facebook, where agents across the country tuned in for insights and inspiration.

The energy in the room was palpable, with agents eager to learn about innovative ways to provide value to their clients in this ever-evolving industry. The Bold Street team highlighted the pivotal role real estate professionals play in helping their clients build wealth through investment properties. The presentation also touched on the current trends impacting homeownership in the U.S., specifically how many Americans are opting to rent while investing in real estate for future financial security.

Bold Street will be returning this week for a full training session at Realty One, hoping to see even more participation and enthusiasm from agents ready to take their business to the next level. According to Bold Street, \”The questions were fantastic, and the interest was clear. Agents are hungry for new strategies to stand out in the competitive market, and we\’re excited to help them do just that.\”

More about Realty One Group

Realty One Group is a modern, fast-growing real estate brokerage that was founded in 2005 by Kuba Jewgieniew. It is known for its unique business model, blending traditional real estate practices with a culture of innovation and collaboration. Realty One operates as a franchise, with offices across the U.S., Canada, and several other countries.

Realty One Group is well-suited for agents looking for independence, flexibility, and a supportive yet innovative environment where they can grow their businesses and thrive in a rapidly changing industry.

 

More about Bold Street

Bold Street empowers real estate agents to grow their businesses by working with residential investors. The company’s mission is grounded in people-first values, with an unwavering commitment to leadership, tenacity, and customer success. As real estate undergoes massive disruption, Bold Street firmly believes that agents will continue to play a hyper-local, relationship-driven role in their clients\’ lives. Bold Street helps agents embrace this new era by offering cutting-edge technology and training, all while staying focused on the American dream of financial independence through real estate.

Real estate agents who partner with Bold Street benefit from continual improvement, leadership, and a culture of excellence. As the team loves to say, “Excellence is built day after day,” and they work tirelessly to ensure their clients are winning—both in the market and in life.

With excellent attendance, lively discussion, and a palpable buzz, Bold Street\’s introduction at Realty One in Gilbert was a resounding success. As agents gear up for this week’s full training, Bold Street is positioned to make a lasting impact on their business growth. Stay tuned for more updates and successes from this exciting partnership!

The real estate investing landscape is more exciting and accessible than ever before. With dynamic changes and innovative strategies shaping the market, there has never been a better time to become a real estate investor.

The Importance of Local Investors

As highlighted in a mid-year 2024 report by New Western, local investors are playing a pivotal role, contributing to affordable housing, and balancing inventory through flipping and building activities. This trend underscores the importance of real estate agents who can navigate investment opportunities and cater to investor needs. Their intimate knowledge of local markets allows them to identify opportunities that others might miss.

According to New Western, \”Local investors are small business owners making an impact on housing inventory and their outlook on REI is positive. 91% of New Western investors expect their businesses to grow despite market conditions and 80% plan to flip 1-5 homes this year.\”

The Fresh Faces of Gen Z and Female Investors

The real estate investing community is becoming increasingly diverse, with Gen Z and female investors making significant strides. These new investors bring fresh perspectives, leveraging technology and social media to uncover opportunities and make informed decisions. This shift underscores that real estate investing is not just for seasoned veterans. It’s also a field ripe for new ideas and innovative approaches.

Here\’s New Western\’s take, \”Gen Z investors are highly ambitious with 79% having started their small businesses in the last few years. The amount of REI content available on YouTube and social media has allowed Gen Z to learn faster and absorb complex REI strategies using modern technology that they prefer. Although they began in a high-rate environment, these Gen Zers expect major business growth of as much as 50% in 2024. They also plan to buy more properties than their Boomer, Millennial, and Gen X investor counterparts.\”

Historic Surge of New Investors Entering the Market

Maximizing Opportunities for All Buyers

At Bold Street, we advocate for every buyer, including family buyers, to adopt an investment mindset. By leveraging market trends and insights from industry experts, agents can provide clients with strategies that enhance long-term value and financial security. Whether it’s a first-time homebuyer or a seasoned investor, understanding the potential for property appreciation and rental income can lead to more informed and lucrative purchasing decisions.

2024 is the Perfect Time to Become a Real Estate Investor

The evolving real estate market demands agents who are not just transaction facilitators but also investment advisors. By staying informed and adapting to trends, agents can unlock new opportunities and deliver unparalleled value to their clients. Embracing this dual role will not only enhance their professional reputation but also contribute to the growth and stability of the real estate market.