It’s Time to Raise the Bar

After ending 2023 with its first annual membership decline since 2012, the National Association of REALTORS® (NAR) anticipates ongoing challenges in retaining members due to reduced business opportunities and the changes from the NAR Settlement. Axios and The Washington Post believe many agents could leave the industry as the new commission rules may impact less experienced agents or those who struggle to justify their fee, leading to natural attrition of less effective agents.

A report by the Consumer Federation of America found,

• 49% of agents reported 0 or only 1 sale a year

• 70% of agents reported 5 or fewer sales a year

• The median number of sales was barely 2 a year

Ralph’s Take

Our family founded Ragetté Real Estate 139 years ago with a commitment to transparency and integrity — a principle we've upheld for five generations and through many industry changes. With the recent policy updates, it's crucial to maintain this standard by ensuring full transparency in broker commissions.

While I understand many agents are upset, frustrated, and even considering leaving the business, I believe our focus should remain on earning our clients' trust through integrity, not by limiting access to listings based on compensation. Embracing these changes and the benefits they can potentially bring our clients is exciting (more on this next week), and I’m thrilled to be part of the next chapter in real estate!

8.5% of U.S. Homes are Worth $1 Million or More

A Redfin report reveals that 8.5% of U.S. homes are now valued at $1 million or more, a significant increase driven by limited housing inventory and high mortgage rates. This trend is particularly pronounced in coastal cities, with nearly half of all homes in some California cities reaching the million-dollar mark.

• Increase driven by severe shortage of home inventory

• Nearly 1 in 10 U.S. homes are now valued at $1 million or more

• Million-dollar homes more than doubled since the pandemic

Ralph’s Take

The rise in million-dollar homes reflects growing economic disparities and highlights the increasing difficulty for average buyers to enter the housing market. 45% of the single-family homes sold in Westchester County this year, closed for one million dollars or more.  

OneKey^® MLS (1/1/2024 - 8/23/2024) 

Record Number of Buyers Back Out of Deals

In July 2024, approximately 59,000 home-purchase agreements were canceled, representing 15.8% of homes that went under contract that month—the highest percentage recorded for any July since Redfin began tracking this data in 2017.

Ralph’s Take

The increase in cancellations is largely driven by high housing costs and growing economic uncertainty, with many buyers reconsidering their decisions amidst fears of a potential recession. The trend was particularly pronounced in Florida and Texas, where the housing markets have cooled significantly post-pandemic.

Restored 1880 Country French Colonial Hits the Market in Katonah

Stunning 6,000sf 1880 Country French home in Northern Westchester blends historical elegance with modern luxury. Fully restored, it features a wrap-around veranda, grand foyer, and expansive ballroom with original marble fireplaces. The home includes a Tiffany-adorned library, a chef’s kitchen with Carrera marble, and a luxurious primary suite. The third floor offers six versatile rooms, ideal for an office or au pair suite. Outside, enjoy a stone patio, a Victorian gazebo, and a 1,500 ft. driveway with wrought iron gates, all just minutes from Katonah Village.  Read More

Visual of the Week 🖼️

How Mortgage Rate Changes Affect Your Purchasing Power

It’s important to know how mortgage rates can affect your monthly payment. Because even a slight change in rates can have a big impact. Overall, rates have been trending down lately. So, this could be your chance to make your move a reality. Send me a message today if you want to talk about starting your search.

Mortgage Watch 📉

The Average 30-Year Fixed Mortgage Rate Dips to 6.46% Amid Fed Chair Powell’s Speech

While investors have largely anticipated potential rate cuts, homebuyers and sellers may be waiting for the Federal Reserve to officially announce rate cuts before making decisions.

This hesitation could lead to increased market activity this fall as market conditions evolve.

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.

2024 Summer Real Estate Guides 🌞

Learn the keys to home buying and selling with our free real estate guides.

This market is not perfect. 

There are real concerns around affordability and the general lack of inventory, but there is also hope because we're expecting a series of rate cuts going into the last quarter of this year.

As always, I'm here to help. 🫡

Thanks for reading and have a great weekend everyone!

-Ralph