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 by discussing the future of the housing market in the next 12 months according to a new report by Goldman Sachs that predicts home sales will fall to a seasonally adjusted annual rate of 4.7 million in the fourth quarter of the year. This bearish outlook paints a picture that the real estate market will not see an improvement until 2024 now.
Racket No. 1: Goldman Sachs says housing will not recover until 2024
Lazine and White dive deep with the prediction that agents could see even lower sales numbers next summer. This data is fueling the conversation about what a housing recession actually is. Reviewing the numbers, it looks like total home sales will end up looking similar to 2012’s market, with the very different expectation that appreciation will still remain positive for sellers with the potential to flatten out in 2023.
White noted that a team member listed a home in the last week and still had 90 showings and 22 offers on a listing that was on a high-traffic road. This shows that in some areas, low inventory is still fueling a very active market for local buyers.
Lazine and White said that this outlook was definitely something to pay attention to in the coming months and that the data so far seemed solid.
Racket No. 2: 40-year fixed mortgages?
The 40-year, interest-only, non-QM mortgage product is back. This offering is supposed to provide more options for homebuyers who are currently priced out of the market.
White goes into the details of her personal experience with this product and emphasizes that these loans can be costly for inexperienced homebuyers. While it has its faults, Lazine countered if you are savvy and have plans to move around, this product still has merit for some.
In fact, Lazine says for business owners who are making moves with their portfolios, these products have the potential to be a tool that opens up opportunities. It’s important to read the fine print, but for many business owners, they know the risks of these mortgage products upfront.
Are these loans a racket? While they are not for affordable housing, Lazine says no, and White says yes. It was a split decision.
Left, middle, right
Blackout risks for California?
Blaming it on a slow news day, the team discusses how climate change is polarizing in our country and that the mainstream media dramatizes headlines. Rising temperatures are creating additional stress on the power grid structures in California. Combined with the previous news that the state is making a big change to electric cars, these headlines can be very confusing for consumers.
Take the headlines with a grain of salt, dig deeper and remember that California residents are likely to become frustrated so some of these issues may end up in a stalemate. Stay informed, and watch out for the hype.
Apple’s big iPhone 14 event
Lazine and White talk about how one of their key hiring questions is if you use “green bubbles” or “blue bubbles” for their team members. The Apple vs. Android debate has been an ongoing battle for a long time in the industry, but Lazine argues that Apple users are better-qualified candidates. Lazine says that he would never hire someone to work in a creative capacity if they are not an Apple user.
Wrapping up the conversation, the power duo agreed that Apple technology is definitely an indicator of how savvy a user is with modern tech as an agent.
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