Did You Sell Any of the 14,904 Homes Yesterday?

Only a small percentage of agents make the most sales. Our team is part of that small percentage.

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Did you know that 14,904 homes sold yesterday alone? That’s straight from the National Association of Realtors.

In the Phoenix area, there are about 88,000 home sales per year. That breaks down to 7,400 each month and 275 each day. With over 35,000 Realtors in the Valley of the Sun, there are at least 26,000 Realtors who didn’t even sell a home last month.

How does this happen? As you may or may not know, a lot of licensed agents around here only work in real estate part-time. At Re/MAX Professionals, we focus on real estate as a full-time career. This is one of the reasons why our agents are able to sell 24 homes per year on average, the highest average in the Valley.

There are at least 26,000 Realtors who don’t sell a home each month.

We train well, we pay well, and we support well. We have several events coming up soon. For one, we offer two real estate classes, called Momentum, each week. Momentum is all about mastering the basics. To learn more about Momentum, click here.

Also, I wan to remind you that I’m bringing in David Osborn, one of the authors of “Wealth Can’t Wait” on November 2nd. You’ll learn a lot and walk away with a free hardcover copy of David’s book. Learn more about the event here.

If you have any other questions for us in the meantime, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you.

Recent Trends in Hispanic Homeownership

It’s pretty amazing to see some of the home buying numbers in the Hispanic community. Here are a few that stick out to us.

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The National Association of Hispanic Real Estate Professionals has recently published a report that I wanted to talk about today. There are a lot of interesting numbers in here that point to an upward trend in Hispanic homeownership that no other demographic is seeing. Here’s what’s been going on:

• In 2016, there were 7.3 million Hispanic homeowners in the U.S.
• Also in 2016, there were 209,000 new Hispanic homeowners.
• Hispanic people account for 60% of the U.S.’s overall growth in homeownership.
• Hispanic people will account for 52% of new homeownership between 2010 and 2030.
• From 2010 to 2015, Hispanics accounted for more than half the population growth in the U.S. according to the U.S. Census.
• Six out of 10 Hispanic homebuyers are millennials.
• The Hispanic purchasing power was $1.4 trillion in 2016—more than the entire country of Australia.
• Hispanic people account for 76.4% of labor growth.

In addition to these numbers, you can see a graph in the video above that shows the growth in owner-occupied units. You can see the Hispanic population of homeowners start to increase over the last decade or so now that growth has outpaced that of non-Hispanic homeowners.

Another graph in the video above shows the net homeownership change. It’s interesting to note that Hispanics had an additional 1.1 million homeownership changes from 2010 to 2016, while non-Hispanic homeownership changes went down by 2.2 million.

Hispanic homeownership is at an all-time high.

Some of these stats just absolutely blew me away. After reading into them more, it makes sense. As far as Hispanic attitudes toward homeownership are concerned, raising a family and wealth creation have proven to be the primary drivers. It appears that trend is likely to continue.

Before I go, I wanted to quickly remind you that I’m bringing in David Osborn, one of the authors of “Wealth Can’t Wait” on November 2nd. You’ll walk away with a free hardcover copy of David’s book. Learn more about the event here.

At RE/MAX Professionals, we have several events coming up, ourselves. For one, we offer two real estate classes, called Momentum, each week. Momentum is all about mastering the basics. To learn more about Momentum, click here.

If you have any questions about that or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Statistics About Real Estate in the Valley

Today I have some interesting statistics about real estate agents in the Valley, and an opportunity for those Realtors who want to improve their numbers.

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There are almost 38,000 active licenses in the Valley today that are Realtors, plus additional non-Realtor licenses as well. There are over 4,200 real estate offices in the Valley. 

One interesting statistic that stands out to me is that 15% of active agents have left the business after just one year. That’s about 5,700 agents who no longer have a license.

10% of agents, or about 3,800, are only in business for 24 to 36 months. After three years in the business, an additional 5% of the remaining agents leave. So once you’ve made it past four years in the business, you can expect to be doing pretty well.

Once you’ve made it past four years, you can expect to be doing pretty well.

Throughout 2016, the number of homes sold in the Valley was 88,713. Given the current number of agents that are active, that’s only 2.36 homes per agent! Our agents at RE/MAX Professionals sell 10 times that average. Some of our agents have sold over 100 homes in the last year.

So if you have any questions on how to become a better real estate agent, we offer free training to anyone interested. You don’t have to join our company, but we would love to see you come through. We’ve created a better business model that focuses on helping regular agents become legendary agents.

If you have any questions about our free training, please give me a call or shoot me an email. I’d be happy to help!

3 Internet Companies That Are Interrupting the Market

Property acquisition companies have been around for a long time in our market, but we are just now starting to see more online-only companies. Today, I’ve listed three of the most popular.

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Today I wanted to talk to you about three companies based solely online that are interrupting our real estate market in the Phoenix metro area.

1. Open Door has been around for the last couple of years, and it’s a pretty fascinating company to say the least. I can tell you that they aren’t going away anytime soon. They have an extraordinary management team and are valued at $550 million. They have $110 million in cash equity to buy properties, and have in total $180 million to acquire properties and run this platform. 

I’m currently representing a buyer who is looking to purchase a home through this site and it’s been an interesting experience. As far as I know, Phoenix was one of their first test markets, and they seem to be successful so far.

2. OfferPad is an online application that helps you sell your home quickly and efficiently. It was started by a local Realtor and a gentleman from Blackstone in 2005, and they have $260 million in debt acquisition money and $30 million in equity. 

Due to one of the founder’s developed business models, this company is expanding to multiple cities at a faster rate than Open Door. They’ve captured a 2% market share in the Phoenix metro area.

3. Zillow is a well-known company that has seen a lot of controversy over their Zestimate feature. They also have an Instant Offer Program that is being tested in Las Vegas and Orlando. It’s set up for big investor pools to directly buy homes from homeowners.

These companies have been around for a long time.

There’s been some play to keep the agent involved in these transactions, but I’m sure that at some point those parties will work to find a way around paying a commission to the agent.

Both Open Door and OfferPad are buying houses and advertising their ease of use. They claim to take the pain out of selling your home, and their popularity speaks for itself. What’s interesting is that both those apps also charge a commission for acquisitions that sits between 6% and 10%, depending on the risk factor.

These types of companies have been around for a long time in the direct investor-to-homeowner market. We’ve seen their yellow signs at street lights that say “I’ll buy your house for cash,” or something similar. We’re just now seeing the online model move forward.

I’d love to have your opinion about these online real estate companies. Do you think they’re going to “Uber-ize” the market? Will there be less need for agents? Shoot me an email or leave a comment below with your thoughts.

If you have any other questions about this or any other real estate topics, give me a call. I’d be happy to help!