Over the past 6 months, you have learned the 6 of the 7 economic drivers of the residential real estate market. The seventh driver of our market is appreciation. (Missed the others or need a refresher? They are GDP, Federal Funds Rate, Interest Rates, Inflation, Unemployment, and Inventory).    What is Appreciation?   Appreciation, in simple terms, is the increase in the value of an asset over time. It’s a fundamental concept that is central ...

Realtor friends, let’s explore the sixth of seven economic factors that impact our industry: Inventory. (We’ve already covered GDP, Inflation, Federal Funds Rate, Interest Rates, and Unemployment.)    As of this writing, Inventory levels are historically low; we are experiencing the most acute seller’s market (low supply, high demand) our country has ever seen. Inventory - specifically, the lack thereof - is on every Realtor's mind right now.    How is it that we have ...

Over the past 5 months, Lockbox has posted primers in the economics that drive our industry. Today’s subject is interest rates: how they are determined and how they impact the residential home sales industry.    The Basics: Federal Funds Rate   In a previous blog post, you learned about the importance of the Federal Funds Rate. As a refresher, it’s the rate the Federal Reserve sets at which banks can lend money to each other, ...

Here’s your reality as a Realtor: your success isn't just determined by taking listings, showing properties, and closing deals. Like it or not, the US economy indirectly influences your leads, sales, and ultimately income.    This post is the next post in a series on the economics of the residential real estate market. You are going to learn what the Federal Funds Rate is, what role it plays, how it impacts inflation, and ultimately how ...

Today we will continue our series on the economic drivers of our residential housing industry (We have already covered GDP and Unemployment). In this blog post, we're going to demystify an economic fundamental that has a significant influence on the real estate market: inflation. This has been a topic that's been dominating conversations in government circles, the media, Wall Street, and Main Street over the last 18 months or so. But why should you, as ...

Ok Realtor friends, the market of the moment has given us a short window of opportunity.    Today, we're going to discuss a strategy that is especially relevant in our current market climate: how to educate our home-buying clients, and in the process, create urgency for those buyers to make an offer in the next two weeks. Sound good? Let's dive in!   So what is that short window of opportunity for buyers in today’s ...

Hello Realtor friends, it’s time for another blog post designed to empower you with knowledge about leads, listings, and leadership. Today we are going to demystify the economic term ‘unemployment,’ and learn why we should care about it as Realtors. I've spent a considerable portion of my career being a student about the economic drivers of our industry, and today, we dive into the significance of 'Unemployment'.   Yes, as Realtors, we do care about ...

As real estate agents, we have to wear several hats and be knowledgeable in multiple areas of study. We must not only be knowledgeable salespeople but also economists, consultants, and advisors to our clients. Understanding how the economy works and being able to communicate it is a powerful differentiator. Being conversational in housing economics quickly earns the trust of future clients and the referrals of your past clients and sphere!    In this first installment ...