Amazon is selling houses?

Happy Friday everyone! The fall season is getting into swing with the leaves changing, temps cooling, and the typically busy Real Estate summer starts to settle. This week’s letter breaks down some more interesting trends in housing, we hope you enjoy it!

This newsletter is 741 words, a 2.9-minute read

Mortgage Rates

Trump v Harris: What are the people saying

When it comes to housing, real estate, and mortgage industry professionals in the HousingWire Pulse Q4 2024 survey chose President Donald Trump’s housing policies over Vice President Kamala Harris’s.

In this survey, various Real Estate professionals were asked about the impacts on each candidate’s housing proposals outlined in one of our recent newsletters. One interesting thing to point out is the number of people who answered that neither candidate is good for housing markets - 23% of real estate brokers, 27% of real estate agents, and 20% of mortgage professionals.

The Great Stay

Housing affordability has been on the front line of the Real Estate industry for a while now. Although there have been great strides with mortgage rates dropping 150 bps, and the labor markets showing signs of strength, it hasn’t really moved the needle in the housing industry.

Normally, when unemployment is this low, people are confident that they’ll find a new job and are much more likely to quit a gig that isn’t right for them. But an interesting thing has happened in the post-pandemic era. Even though layoff rates are low, the rate at which companies are hiring is also low. As a result, people are quitting their jobs less often. Companies are reluctant to hire more, employees are afraid to quit. No one wants to move. 

Compare that to the housing market. Homeowners have a good thing in their cheap mortgages and high equity. Buyers are reluctant to buy. No one wants to move. Over the last decade, Americans have been migrating quickly from the high-cost coastal states to the Sun Belt for cheaper homes. In the last two years, that migration has slowed down and even reversed in some cases. Housing, like jobs, is in ‘The Great Stay’. That has supply and demand implications and also price implications.

Aftermath of NAR Lawsuit

It has been nearly two months since the nationwide implementation of the business practice changes outlined in the National Association of Realtors’ commission lawsuit settlement agreement. Brokers and industry leaders say things are still a little chaotic, but they aren’t nearly as bad as some feared. link

As Sharran Srivatsaa, the president of The Real Brokerage, sees it, there are two primary agent camps right now.

“Camp one is agents who are looking to continue running their business in the old way, but still trying to check the boxes they need to, to stay in compliance with the rules. And then the other group is taking the new rules and completely adapting and morphing their business to these new rules,” Srivatsaa said. “They literally burned the bridge between where they are and the legacy way of doing things.”

At Real, while Srivatsaa feels things are running smoothly, he noted that when his agents do run into challenges in a transaction, it is when agents from the separate camps meet on opposite sides of a deal.

Shrinkflation hits housing

Shrinkflation has not only impacted the size of our snacks and candy bars, but it has impacted housing too. The difference here however is not purely a profit play but more of a demographic shift.

Builders are focusing on smaller homes to cater to affordability needs and demographic changes, including smaller households and delayed family formation. This shift responds to declining birth rates and longer lifespans.

Did you know: You can buy a house from Amazon

Due to the affordable housing strain impacting areas across the country, companies like Home Depot, and Amazon are following in the footsteps of Sears who sold over 70,000 mail-order homes in the early-mid 1900s.

Now on its site are dozens of tiny/prefab homes for sale going between $10-50,000.

However, it's important to note that purchasing a home kit on Amazon.com or from Home Depot does not guarantee legal installation rights. Some local municipalities are advocating for more ADUs to alleviate housing constraints, while others maintain stringent restrictions.

That wraps it up for this week’s edition! We hope you enjoyed it! Please share to continue to help us grow our audience and community → www.pool.beehiiv.com/subscribe

The information provided in this newsletter is for informational and educational purposes only and does not constitute financial, investment, or real estate advice. The content is based on the opinions and research of the authors and may not reflect the most current market conditions or developments. The analysis of properties is done without consideration of each platform’s fees. Always conduct your own research and consult with a qualified financial advisor or real estate professional before making any investment decisions. The authors and publishers of this newsletter disclaim any responsibility for decisions made based on the information contained herein.