August 10, 2023 • 16 mins
Hi This is Brad Weisman - Click Here to Send Me a Text Message
Pete is BACK... digging into the Current Housing Market!!
Wondering how you can navigate the shifting real estate market? Curious about the caliber of buyers currently in play? We have a fascinating discussion lined up for you, where we shine a light on FHA and VA loan opportunities, and excitingly, how buyer traffic is trending toward pre-pandemic levels. We're also giving you the lowdown on the importance of pricing a property accurately, and we're drawing the lines between List Price vs Sale Price.
Get ready for a journey into real estate market trends and predictions, where surprisingly, the average sale price is ticking upwards compared to last year. Hold on tight as we delve into sold prices, absorption rates, and the intriguing difference in figures. We also examine the potential impact of prevailing interest rates on the market, stress on the importance of swift action in a buoyant real estate market, and of course, share some good-hearted humor. Don't miss out on this insightful episode, packed with real estate talk and a dash of fun!
#peteheim #bradweisman #realestatemarket #realestateagent #realestateandyou
We know self tanners. We love self tanners. To us, self-tanner for men are a necessary part of life. You see a pale dude on the street and he looks like a fish out of water. It's a real problem, bro. But this exact passion for self-tanner is why Bro Glo is so rad.
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Welcome to The Brad Weisman Show, where we dive into the world of real estate, real life, and everything in between with your host, Brad Weisman! 🎙️ Join us for candid conversations, laughter, and a fresh take on the real world. Get ready to explore the ups and downs of life with a side of humor. From property to personality, we've got it all covered. Tune in, laugh along, and let's get real! 🏡🌟 #TheBradWeismanShow #RealEstateRealLife
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Hello, this is Brad Wiseman.
You listen to Real Estate andyou.
We are back in the studio again.
My son makes fun of me everytime I say that, by the way, but
we are back in the studio andwe are back here with Pete Heim.
We are giving you an update onthe market to tell you what's
going on.
Some things are starting tochange.
Everything changes.
(00:22):
There's a song.
It says that.
I think Everything changes.
Ok, but that's not that kind ofpodcast, so let's get into it
right away.
There was there's 386 homes inthe market right now in Brooks
County.
So, that is creeping up.
Yeah, look, here goes a buyernow, so he's like that's good,
he couldn't give a shit before.
Now, all of a sudden, now he'sactually sitting there going.
(00:44):
Oh, that's important.
This show is actually good.
Wipe up the drool that's comingout of there.
It's funny how you come, youbecome a buyer and all of a
sudden things change, right,that's funny.
So let's dive in to what themarket's doing.
There's some things shifting,some things going on.
I see and I think we justtalked about it a little bit One
(01:04):
of the things that I've noticedand we'll just talk about that
and then you can tell me whatyou see is I'm noticing the
quality of the buyers are notthat they're bad quality, it's
just going back a little bit towhere things were and I'm hoping
that this gives the buyers thatquit, the buyers that are
(01:24):
discouraged.
It gives them a little bit of afeeling of you know what.
Maybe I can make this happenagain.
You know what I mean Because Isaw in my listing I have right
now several bunch of showingstwo FHA offers came in.
Nothing crazy.
They're not like all over theplace with price and things like
that.
They're good offers, solid.
(01:45):
So is that something I'm seeing?
Also, Hugo was looking at ahouse and he decided to pass on
it, but the listing agent wasall over me about putting an
offer together, and that hasn'thappened for a while, Therefore
for the longest time.
If you told me you had interestin the property, they might
call you and let you know thatthere's three offers.
(02:07):
You've got to stay in touchwith them, so it was kind of
interesting that.
Speaker 2 (02:11):
So you've seen that at all.
You've seen any softness.
It's what we talked about.
Now that the craziness isstarting to slow down a little
bit, these poor FHA VA buyersnow are getting an opportunity
to actually just get in.
And for those who don't knowwhat FHA VA means, it's just a
government backed government andshared loan where the appraisal
might require some repairs.
(02:32):
A handrail, and it's safetystuff.
Yeah, it's all safety stuff.
Speaker 1 (02:34):
We're not talking crazy, it's peeling paint, it's
handrails, it's all that kind ofstuff and, like I said before,
we never really were thatconcerned about it, that's right
Until we had these buyers thathad capes on that came in to
write up an agreement.
It's flying in with over fullprice cash.
Yes, exactly, they had a big Bon the back.
(02:55):
No CB cash buyer on the back,so Superman look out.
But that's really what happened, and now I think we're going to
start going towards the normalsituation.
Speaker 2 (03:06):
It is Right, yeah, and it was funny.
The KCM that just came out, wasit A week ago, maybe, talking
about buyer traffic?
Returning to seasonality, Didyou?
See, I didn't have the graphtoday.
I'm sorry.
Was it the what's it?
The.
I compared the last five MaysDid you see that?
Speaker 1 (03:24):
No, I did not see that.
Speaker 2 (03:25):
Yeah, I didn't see that In 2019, there was 136
showings set up.
I guess those are off setups.
2020 was 166.
But then 2021 is 236.
Oh wow, and then we get intopandemic right.
2022 was 192.
And then 2023, 202.
So that's back to pre-pandemicnumbers, where there's buyer
(03:46):
traffic.
Speaker 1 (03:47):
Right, right right.
Speaker 2 (03:48):
People are kind of used to 7% interest now and
there's more people coming out.
Speaker 1 (03:53):
That's amazing, yeah what.
Yeah it's amazing, but that'sgood and I think.
But I think what's going tostart happening is, as these
houses are starting I mean, I'vebeen doing price reductions,
I've been doing you know we'reseeing that happen.
It's not just like any, it'snot like put any listing out
there.
It doesn't matter what it lookslike or how it is, and it's
going to sell, that's right.
So it's interesting.
Speaker 2 (04:13):
It's as important now as it ever was.
Very much so.
You know we always preach aboutpricing it properly.
You know too low.
You know what too low means.
Too low means people think it'ssomething wrong too high is
like they're crazy land.
It's got to be right andpricing it right now, as you
know we talked about, isdifficult because a lot of the
comps are coming off the crazy.
We call those the unicorn years.
Speaker 1 (04:35):
Yeah, yeah, absolutely the unicorn years.
I love that KCM used that.
I love.
Speaker 2 (04:38):
I'm stealing that.
You can steal that.
Speaker 1 (04:39):
That's fine, which is really cool, I won't tell them,
please.
Thank you.
No, no problem.
Speaker 2 (04:43):
Yeah, so back to what they listed it for.
Yeah, it was what what theseller was willing to take.
Yeah, and now, before it gotinto a bid, war craziness, yeah.
Speaker 1 (04:51):
And I think you're going to see more of that.
I think also, sellers have tobe careful that they're not
listing their house at what theother home sold for, but listing
their house at what the otherhome was listed at, exactly
Because there's a hugedifference and we talked about
this before and I just did thaton my new, on one of my newest
listings.
We the.
It was interesting that thesales price on on three of the
(05:14):
properties around it that werecomps was around 260, 255.
Right, but when I look back atthe listing price, it was 230s,
235, 240 were the listing price.
So what I said to them is let'snot look at what they got,
let's look at where they pricedit.
Right.
I can guarantee you the I willsell that house for in the 260s.
(05:35):
That's right, because I listedit at the 240 range and it's
going to end up getting an offerover 250 into the 260s.
But if I would have listed 260,that wouldn't be the situation.
It'd sit.
Yeah, and you know why too,buyers are afraid to make offers
.
Today they are, they're afraidto make offers, and so are
realtors as buyer agents.
We're a little scared Like yeah, like what You're going to go
(05:58):
dollar under.
Speaker 2 (05:59):
I wouldn't do that you won't get it.
Yeah, oh my.
Speaker 1 (06:01):
God, yeah, that's when you got to use the eight
ball.
You go, just use the eight ballwhen next time?
Right, yeah, that's what that'sthere for.
That's for making offers.
Speaker 2 (06:09):
I have another tip on this topic and maybe this is
more for other realtors to telltheir buyers.
How many times have you gottena comment like my buyer is
somewhat interested, but let meknow if something else comes in,
absolutely, absolutely.
And my response is why?
Yeah, why do you want tocompete?
Speaker 1 (06:27):
Yeah, I'll do it right away.
Just come in, Because here'sthe thing too, is that you know
there's nothing that says thatthe seller has to wait that's
right For more offers If theywant to get it done and they
want to stop showing because youknow showings are not fun,
Right?
I mean, nobody likes to have toput their dog in a crate, put
the kid in the car, drive aroundthe block for a half an hour,
you know.
Or if it's got 20 showings inone day, you're getting a hotel
(06:48):
for the weekend.
I mean, seriously, it'scraziness.
So that's not fun If I get it,if I was a seller and I got a
good offer my first offer andthere was 20 showing signed up,
I'd probably take it.
Yeah, yeah, I don't want todeal with that, yeah.
Speaker 2 (06:59):
So, yeah, so your realtor's out there, tell your
buyers.
If there's any chance, there'san interest that they would
think they would want it, justput it in.
Yeah, absolutely.
Don't.
Don't.
Don't say oh, let me know ifthere's others.
I mean it's.
It's actually the service whereyou're doing.
Yeah, right Because you'remaking them get into a position
where they're going to have tocompete Yep.
Speaker 1 (07:15):
Absolutely.
Speaker 2 (07:16):
So it's it's.
We're coming back into anenvironment where you're not
going to have to do that as muchanymore.
Yeah, it's weird, I think it'sgood advice just to tell them to
just go ahead and submit.
I agree, totally agree.
Okay, absolutely, absolutely sonumbers.
Speaker 1 (07:28):
Yeah, okay, tell me what numbers.
Speaker 2 (07:29):
I've got, I've got the first half of the year stats
.
Awesome, based on last half,first half of the year.
Okay, how's it looking?
So, january to June of 22,.
The average sold price in BerksCounty was $259 and change Okay
, take the city out.
It was $289 and change, okay,okay, absorption rate Guys,
remember what that is.
Yeah, stop all listing how longit takes for all the supply to
(07:50):
go away 0.7 months in Berks and0.8 in it.
If you at, if you took the cityout, which is kind of weird.
Speaker 1 (07:57):
Yeah, it's not even right, it's not even a little
longer.
Yeah, not much, not much it'sthe same.
Speaker 2 (08:02):
Yeah, pretty much.
Days on market 20 and 18.
So pretty much the same.
But then let's go a year later.
Okay, this year the averagesale price Berks County to 77
and change that's over.
Uh, it's a 7% increase.
Speaker 1 (08:16):
Interesting.
So where it's seven, so 7% overthe last last year's six months
for six months and then wetalked about it's amazing our
prediction on Berks.
Speaker 2 (08:25):
We're thinking 4% or 5% Yep Right now.
Over a year.
Over a year we're seven.
But what's interesting.
What's 259, 277,?
What is that?
That's 7%, that's 14.
Yeah, it's about 15.
It could be 8% between sevenand eight.
Speaker 1 (08:39):
Yeah, yeah.
But what's interesting?
What could happen there, though, if the rates would stay where
they are, or if things start tosoften up a little bit, going
into the fall, we might end upthat might eke back a little bit
.
Speaker 2 (08:53):
It might eke back a bit.
You see, we'll see.
Speaker 1 (08:54):
Still great.
It's still 4%.
It's unreal yeah.
Speaker 2 (08:57):
Where else you making that money.
But if you take the city out ofthe equation it's 314 in the
county.
Speaker 1 (09:01):
That's amazing.
Yeah, that's incredible, andthat was from 289.
Speaker 2 (09:05):
That's amazing, yeah, so it's about 8%.
Speaker 1 (09:08):
So that's a great place for my quote.
Oh, great place for the quoteof the day.
Speaker 2 (09:13):
This is the best quote.
This is a great quote.
Speaker 1 (09:15):
Hugo didn't like it, but yeah, that's all right.
No, he did no.
No, this is a great quote.
It's from.
I saw it on Facebook and I havenever heard this quote in 30
some years.
Speaker 2 (09:24):
You haven't either which is amazing.
Speaker 1 (09:25):
Nope, it's, here we go.
Don't wait to buy real estate.
Buy real estate and wait Show'sover.
Speaker 2 (09:32):
That's it.
Show's over Done.
That's what you gotta do.
Speaker 1 (09:34):
Cancel the podcast.
We're done, that's it.
We don't need to come outanymore.
That's all you need to know.
That's it.
All right, show's over.
Throw away the eight ball, butno, that's amazing.
So just don't wait to buy realestate.
Buy real estate and wait, dude,that's great.
So the person that waited lastyear went from 280 something to
(09:54):
three.
Was it 314?
Speaker 2 (09:56):
Yeah, two, I take.
We took the city out 289 to 314.
Speaker 1 (10:00):
I had a guy on Facebook.
That same house I had a guy onFacebook that said to me that I
was putting numbers up or somekind of post that I did, and his
comment was this is the worsttime to buy real estate.
If you buy now, you're stupid,oh my goodness.
And I was like no, you shouldlook in the mirror, sir sir, the
one that's stupid.
Speaker 2 (10:20):
Yeah, don't wait to buy real estate.
Speaker 1 (10:21):
There you go.
Yeah, I should have quoted that.
Speaker 2 (10:24):
I'm going to put that back you know what, for as long
as we've been doing this, Inever heard that.
I mean, we reach that, and wesay that in a different way
because you should never wait,but that is the best, best quote
ever.
Speaker 1 (10:36):
Best quote ever.
Best quote ever.
You go.
Best quote ever.
Write that down.
That's right, I already did youalready did, say he's taking
notes now.
Speaker 2 (10:44):
See what happens when you're a buyer.
Speaker 1 (10:45):
That's right, it's amazing.
Speaker 2 (10:47):
But what also says about don't be fooled by what
the headlines are saying aboutpricing.
Don't be fooled.
Exactly, don't be fooled.
Don't be fooled, no, and it'snot dropping.
No, it's not, no, and I don'tknow if it's going to.
Speaker 1 (10:59):
No, if it's similar to what stays low.
The only price range that hasgotten a little touched is the
upper price range $4.5,500 plus.
Yeah, into the sixes?
Yep, absolutely, I mean, thoseare the ones that are starting
to hurt, and I think the reasonfor that is they kept going up
and up and up at this crazy rate.
Well, and it finally hit a wall.
It hit a ceiling and theinterest rates increased the
(11:23):
speed on that ceiling.
That's what it is.
Speaker 2 (11:25):
It's more the qualification of the interest
rate and combined with thehigher price and taxes.
Oh and taxes too.
Speaker 1 (11:30):
See, some of these taxes that are $15,000 a year
you start putting in.
You know, when you were lookingat 3.5% interest rate, you can
swallow the $15,000 a year.
You'd be like, okay, I can dealwith this, it's not a bad
payment as a whole.
And then all of a sudden theyjack up to 7%.
And now a house that was and Idid numbers on this you buy a
$600,000 in our house and youput down, you know, let's just
(11:51):
say, 20% of whatever it would beBefore.
Your payment would have beenlike $3,400 of taxes and
everything whatever.
It is $3,500.
Now some of those numbersthey're in the fives, like
$5,200 a month.
It's crazy.
So you know, it's justcompounds because of the price
range.
That's it.
Yeah, it's just compounds.
Speaker 2 (12:09):
So it's amazing Any other numbers you have.
That's the numbers I have foryou today.
I think that's all I could havehandled.
Speaker 1 (12:14):
So yeah, so I'm looking at.
There is one thing here I justwant to go.
I was looking at keepingcurrent matters.
Fewer sellers are putting theirhomes in the market right now.
That's a big reason.
Housing supplies are limited.
So year over year change Ininventory this is nationwide,
nation.
We are down 25% again ininventory.
That's now.
That's national.
So all these little microcosm,these little micro areas like
(12:36):
Berks County and all those,those can have their own thing.
You can have their own game,their own thing going on.
But as a whole it's 25% down.
That's and we were low lastyear.
Speaker 2 (12:47):
Well, we, well, we were in the 340, 350 range last
year.
Speaker 1 (12:50):
Last year.
So we're 386, we're 386 today.
Yeah, we're trending up andthat's good for Hugo.
That's good for Hugo.
It's good for a lot of buyers.
It doesn't seem like that's alot, but if we can keep that
trend going, that will reallyhelp just kind of even things
out a little bit yeah.
Speaker 2 (13:06):
Remember this national statistic is is this
market really is micro focused?
Right, absolutely.
And Berks County is.
It's on the rise a little bit.
There's other areas that isjust way on the decline.
Oh yeah, way Absolutely.
So that kind of all happens up.
Speaker 1 (13:21):
California.
Things are adjusting there, yougot you know.
Texas is still doing well,florida's doing well, but
there's some other areas thatare starting to.
Speaker 2 (13:29):
They're starting to, they're feeling it, and if you
get some, of the grabs of thenation.
Speaker 1 (13:32):
It's, it's interesting a little bit.
Yeah, it's amazing.
So that was one thing.
Total housing inventory so low,that's creating competition, we
knew that.
And then house prices.
Now nationwide house pricesthey're saying year to year
change 0.2%.
Yep, so pretty much flatincrease.
Okay, now, month over monthchange nationwide at 1.3%, one
(13:52):
way through up.
Speaker 2 (13:53):
Yeah, that's national , yes.
Speaker 1 (13:55):
So it's just or above average.
Yes, we are, yes, we are.
And then, yeah, so home sold inunder a month.
This was interesting.
Yeah, nationwide is down 13.6%.
Yeah, month of a month up 2.7.
Yeah, so you know we had thatsluggish time and now of a
sudden we're seeing all thatstuff's kind of changing a
(14:16):
little bit.
Speaker 2 (14:16):
It's people getting used to the 7%.
You got it what?
Speaker 1 (14:18):
it is, I think, got it.
Everybody's still saying fivesby the end of the year.
I'm hoping, yeah, they'resaying it, I, they're saying
exactly, but they're just notfreaking doing it.
Why don't they?
Somebody just needs to go tothe interest rate person.
There's gotta be one personthat just controls that right.
You just go to them, you give50 bucks.
They could you just change therates.
Speaker 2 (14:36):
I think it's the eight ball that controls it.
Speaker 1 (14:37):
It's the eight ball.
Speaker 2 (14:38):
That's right, all right here we go Ask me again or
something.
Speaker 1 (14:42):
Yeah, okay so what was the question last time?
What was the question?
Because we're gonna end to showthe interest rates coming down
are the interest rates comingdown?
That's your question.
Yeah, um Jesus, you know what?
If I could just see, it'd begreat nice to see um Reply
harder try again.
A reply hazy?
Try again.
Speaker 2 (15:02):
Oh, the reply.
Speaker 1 (15:03):
Ape ball is this any one.
Yeah, I gotta have to stealanother one from my son.
This one's not that good.
Speaker 2 (15:08):
We need to get a crystal, so the reply is hazy
try again.
Speaker 1 (15:11):
Everything says try again.
Talk about a politicallycorrect eight ball.
Oh my gosh.
All right, man, that's it.
There we go, we got the ball inthere.
That's good, that's good.
Thanks for Pete for coming inhere.
I appreciate it, brother,absolutely.
There we go another show withPete.
Lots of numbers, lots ofinformation.
If you're a buyer, get backinto the market, you know.
Don't be afraid, get out thereand buy a house, it's gonna
(15:32):
happen.
And what's that quote?
Don't wait to buy a real estate, buy real estate and wait, and
then you'll profit off of it.
All right, that's it.
We'll see you next Thursday at7 pm.
Hello, this is Brad Wiseman.
You listen to Real Estate andyou.
We are back in the studio again.
My son makes fun of me everytime I say that, by the way, but
we are back in the studio andwe are back here with Pete Heim.
We are giving you an update onthe market to tell you what's
going on.
Some things are starting tochange.
Everything changes.
(00:22):
There's a song.
It says that.
I think Everything changes.
Ok, but that's not that kind ofpodcast, so let's get into it
right away.
There was there's 386 homes inthe market right now in Brooks
County.
So, that is creeping up.
Yeah, look, here goes a buyernow, so he's like that's good,
he couldn't give a shit before.
Now, all of a sudden, now he'sactually sitting there going.
(00:44):
Oh, that's important.
This show is actually good.
Wipe up the drool that's comingout of there.
It's funny how you come, youbecome a buyer and all of a
sudden things change, right,that's funny.
So let's dive in to what themarket's doing.
There's some things shifting,some things going on.
I see and I think we justtalked about it a little bit One
(01:04):
of the things that I've noticedand we'll just talk about that
and then you can tell me whatyou see is I'm noticing the
quality of the buyers are notthat they're bad quality, it's
just going back a little bit towhere things were and I'm hoping
that this gives the buyers thatquit, the buyers that are
(01:24):
discouraged.
It gives them a little bit of afeeling of you know what.
Maybe I can make this happenagain.
You know what I mean Because Isaw in my listing I have right
now several bunch of showingstwo FHA offers came in.
Nothing crazy.
They're not like all over theplace with price and things like
that.
They're good offers, solid.
(01:45):
So is that something I'm seeing?
Also, Hugo was looking at ahouse and he decided to pass on
it, but the listing agent wasall over me about putting an
offer together, and that hasn'thappened for a while, Therefore
for the longest time.
If you told me you had interestin the property, they might
call you and let you know thatthere's three offers.
(02:07):
You've got to stay in touchwith them, so it was kind of
interesting that.
Speaker 2 (02:11):
So you've seen that at all.
You've seen any softness.
It's what we talked about.
Now that the craziness isstarting to slow down a little
bit, these poor FHA VA buyersnow are getting an opportunity
to actually just get in.
And for those who don't knowwhat FHA VA means, it's just a
government backed government andshared loan where the appraisal
might require some repairs.
(02:32):
A handrail, and it's safetystuff.
Yeah, it's all safety stuff.
Speaker 1 (02:34):
We're not talking crazy, it's peeling paint, it's
handrails, it's all that kind ofstuff and, like I said before,
we never really were thatconcerned about it, that's right
Until we had these buyers thathad capes on that came in to
write up an agreement.
It's flying in with over fullprice cash.
Yes, exactly, they had a big Bon the back.
(02:55):
No CB cash buyer on the back,so Superman look out.
But that's really what happened, and now I think we're going to
start going towards the normalsituation.
Speaker 2 (03:06):
It is Right, yeah, and it was funny.
The KCM that just came out, wasit A week ago, maybe, talking
about buyer traffic?
Returning to seasonality, Didyou?
See, I didn't have the graphtoday.
I'm sorry.
Was it the what's it?
The.
I compared the last five MaysDid you see that?
Speaker 1 (03:24):
No, I did not see that.
Speaker 2 (03:25):
Yeah, I didn't see that In 2019, there was 136
showings set up.
I guess those are off setups.
2020 was 166.
But then 2021 is 236.
Oh wow, and then we get intopandemic right.
2022 was 192.
And then 2023, 202.
So that's back to pre-pandemicnumbers, where there's buyer
(03:46):
traffic.
Speaker 1 (03:47):
Right, right right.
Speaker 2 (03:48):
People are kind of used to 7% interest now and
there's more people coming out.
Speaker 1 (03:53):
That's amazing, yeah what.
Yeah it's amazing, but that'sgood and I think.
But I think what's going tostart happening is, as these
houses are starting I mean, I'vebeen doing price reductions,
I've been doing you know we'reseeing that happen.
It's not just like any, it'snot like put any listing out
there.
It doesn't matter what it lookslike or how it is, and it's
going to sell, that's right.
So it's interesting.
Speaker 2 (04:13):
It's as important now as it ever was.
Very much so.
You know we always preach aboutpricing it properly.
You know too low.
You know what too low means.
Too low means people think it'ssomething wrong too high is
like they're crazy land.
It's got to be right andpricing it right now, as you
know we talked about, isdifficult because a lot of the
comps are coming off the crazy.
We call those the unicorn years.
Speaker 1 (04:35):
Yeah, yeah, absolutely the unicorn years.
I love that KCM used that.
I love.
Speaker 2 (04:38):
I'm stealing that.
You can steal that.
Speaker 1 (04:39):
That's fine, which is really cool, I won't tell them,
please.
Thank you.
No, no problem.
Speaker 2 (04:43):
Yeah, so back to what they listed it for.
Yeah, it was what what theseller was willing to take.
Yeah, and now, before it gotinto a bid, war craziness, yeah.
Speaker 1 (04:51):
And I think you're going to see more of that.
I think also, sellers have tobe careful that they're not
listing their house at what theother home sold for, but listing
their house at what the otherhome was listed at, exactly
Because there's a hugedifference and we talked about
this before and I just did thaton my new, on one of my newest
listings.
We the.
It was interesting that thesales price on on three of the
(05:14):
properties around it that werecomps was around 260, 255.
Right, but when I look back atthe listing price, it was 230s,
235, 240 were the listing price.
So what I said to them is let'snot look at what they got,
let's look at where they pricedit.
Right.
I can guarantee you the I willsell that house for in the 260s.
(05:35):
That's right, because I listedit at the 240 range and it's
going to end up getting an offerover 250 into the 260s.
But if I would have listed 260,that wouldn't be the situation.
It'd sit.
Yeah, and you know why too,buyers are afraid to make offers
.
Today they are, they're afraidto make offers, and so are
realtors as buyer agents.
We're a little scared Like yeah, like what You're going to go
(05:58):
dollar under.
Speaker 2 (05:59):
I wouldn't do that you won't get it.
Yeah, oh my.
Speaker 1 (06:01):
God, yeah, that's when you got to use the eight
ball.
You go, just use the eight ballwhen next time?
Right, yeah, that's what that'sthere for.
That's for making offers.
Speaker 2 (06:09):
I have another tip on this topic and maybe this is
more for other realtors to telltheir buyers.
How many times have you gottena comment like my buyer is
somewhat interested, but let meknow if something else comes in,
absolutely, absolutely.
And my response is why?
Yeah, why do you want tocompete?
Speaker 1 (06:27):
Yeah, I'll do it right away.
Just come in, Because here'sthe thing too, is that you know
there's nothing that says thatthe seller has to wait that's
right For more offers If theywant to get it done and they
want to stop showing because youknow showings are not fun,
Right?
I mean, nobody likes to have toput their dog in a crate, put
the kid in the car, drive aroundthe block for a half an hour,
you know.
Or if it's got 20 showings inone day, you're getting a hotel
(06:48):
for the weekend.
I mean, seriously, it'scraziness.
So that's not fun If I get it,if I was a seller and I got a
good offer my first offer andthere was 20 showing signed up,
I'd probably take it.
Yeah, yeah, I don't want todeal with that, yeah.
Speaker 2 (06:59):
So, yeah, so your realtor's out there, tell your
buyers.
If there's any chance, there'san interest that they would
think they would want it, justput it in.
Yeah, absolutely.
Don't.
Don't.
Don't say oh, let me know ifthere's others.
I mean it's.
It's actually the service whereyou're doing.
Yeah, right Because you'remaking them get into a position
where they're going to have tocompete Yep.
Speaker 1 (07:15):
Absolutely.
Speaker 2 (07:16):
So it's it's.
We're coming back into anenvironment where you're not
going to have to do that as muchanymore.
Yeah, it's weird, I think it'sgood advice just to tell them to
just go ahead and submit.
I agree, totally agree.
Okay, absolutely, absolutely sonumbers.
Speaker 1 (07:28):
Yeah, okay, tell me what numbers.
Speaker 2 (07:29):
I've got, I've got the first half of the year stats
.
Awesome, based on last half,first half of the year.
Okay, how's it looking?
So, january to June of 22,.
The average sold price in BerksCounty was $259 and change Okay
, take the city out.
It was $289 and change, okay,okay, absorption rate Guys,
remember what that is.
Yeah, stop all listing how longit takes for all the supply to
(07:50):
go away 0.7 months in Berks and0.8 in it.
If you at, if you took the cityout, which is kind of weird.
Speaker 1 (07:57):
Yeah, it's not even right, it's not even a little
longer.
Yeah, not much, not much it'sthe same.
Speaker 2 (08:02):
Yeah, pretty much.
Days on market 20 and 18.
So pretty much the same.
But then let's go a year later.
Okay, this year the averagesale price Berks County to 77
and change that's over.
Uh, it's a 7% increase.
Speaker 1 (08:16):
Interesting.
So where it's seven, so 7% overthe last last year's six months
for six months and then wetalked about it's amazing our
prediction on Berks.
Speaker 2 (08:25):
We're thinking 4% or 5% Yep Right now.
Over a year.
Over a year we're seven.
But what's interesting.
What's 259, 277,?
What is that?
That's 7%, that's 14.
Yeah, it's about 15.
It could be 8% between sevenand eight.
Speaker 1 (08:39):
Yeah, yeah.
But what's interesting?
What could happen there, though, if the rates would stay where
they are, or if things start tosoften up a little bit, going
into the fall, we might end upthat might eke back a little bit
.
Speaker 2 (08:53):
It might eke back a bit.
You see, we'll see.
Speaker 1 (08:54):
Still great.
It's still 4%.
It's unreal yeah.
Speaker 2 (08:57):
Where else you making that money.
But if you take the city out ofthe equation it's 314 in the
county.
Speaker 1 (09:01):
That's amazing.
Yeah, that's incredible, andthat was from 289.
Speaker 2 (09:05):
That's amazing, yeah, so it's about 8%.
Speaker 1 (09:08):
So that's a great place for my quote.
Oh, great place for the quoteof the day.
Speaker 2 (09:13):
This is the best quote.
This is a great quote.
Speaker 1 (09:15):
Hugo didn't like it, but yeah, that's all right.
No, he did no.
No, this is a great quote.
It's from.
I saw it on Facebook and I havenever heard this quote in 30
some years.
Speaker 2 (09:24):
You haven't either which is amazing.
Speaker 1 (09:25):
Nope, it's, here we go.
Don't wait to buy real estate.
Buy real estate and wait Show'sover.
Speaker 2 (09:32):
That's it.
Show's over Done.
That's what you gotta do.
Speaker 1 (09:34):
Cancel the podcast.
We're done, that's it.
We don't need to come outanymore.
That's all you need to know.
That's it.
All right, show's over.
Throw away the eight ball, butno, that's amazing.
So just don't wait to buy realestate.
Buy real estate and wait, dude,that's great.
So the person that waited lastyear went from 280 something to
(09:54):
three.
Was it 314?
Speaker 2 (09:56):
Yeah, two, I take.
We took the city out 289 to 314.
Speaker 1 (10:00):
I had a guy on Facebook.
That same house I had a guy onFacebook that said to me that I
was putting numbers up or somekind of post that I did, and his
comment was this is the worsttime to buy real estate.
If you buy now, you're stupid,oh my goodness.
And I was like no, you shouldlook in the mirror, sir sir, the
one that's stupid.
Speaker 2 (10:20):
Yeah, don't wait to buy real estate.
Speaker 1 (10:21):
There you go.
Yeah, I should have quoted that.
Speaker 2 (10:24):
I'm going to put that back you know what, for as long
as we've been doing this, Inever heard that.
I mean, we reach that, and wesay that in a different way
because you should never wait,but that is the best, best quote
ever.
Speaker 1 (10:36):
Best quote ever.
Best quote ever.
You go.
Best quote ever.
Write that down.
That's right, I already did youalready did, say he's taking
notes now.
Speaker 2 (10:44):
See what happens when you're a buyer.
Speaker 1 (10:45):
That's right, it's amazing.
Speaker 2 (10:47):
But what also says about don't be fooled by what
the headlines are saying aboutpricing.
Don't be fooled.
Exactly, don't be fooled.
Don't be fooled, no, and it'snot dropping.
No, it's not, no, and I don'tknow if it's going to.
Speaker 1 (10:59):
No, if it's similar to what stays low.
The only price range that hasgotten a little touched is the
upper price range $4.5,500 plus.
Yeah, into the sixes?
Yep, absolutely, I mean, thoseare the ones that are starting
to hurt, and I think the reasonfor that is they kept going up
and up and up at this crazy rate.
Well, and it finally hit a wall.
It hit a ceiling and theinterest rates increased the
(11:23):
speed on that ceiling.
That's what it is.
Speaker 2 (11:25):
It's more the qualification of the interest
rate and combined with thehigher price and taxes.
Oh and taxes too.
Speaker 1 (11:30):
See, some of these taxes that are $15,000 a year
you start putting in.
You know, when you were lookingat 3.5% interest rate, you can
swallow the $15,000 a year.
You'd be like, okay, I can dealwith this, it's not a bad
payment as a whole.
And then all of a sudden theyjack up to 7%.
And now a house that was and Idid numbers on this you buy a
$600,000 in our house and youput down, you know, let's just
(11:51):
say, 20% of whatever it would beBefore.
Your payment would have beenlike $3,400 of taxes and
everything whatever.
It is $3,500.
Now some of those numbersthey're in the fives, like
$5,200 a month.
It's crazy.
So you know, it's justcompounds because of the price
range.
That's it.
Yeah, it's just compounds.
Speaker 2 (12:09):
So it's amazing Any other numbers you have.
That's the numbers I have foryou today.
I think that's all I could havehandled.
Speaker 1 (12:14):
So yeah, so I'm looking at.
There is one thing here I justwant to go.
I was looking at keepingcurrent matters.
Fewer sellers are putting theirhomes in the market right now.
That's a big reason.
Housing supplies are limited.
So year over year change Ininventory this is nationwide,
nation.
We are down 25% again ininventory.
That's now.
That's national.
So all these little microcosm,these little micro areas like
(12:36):
Berks County and all those,those can have their own thing.
You can have their own game,their own thing going on.
But as a whole it's 25% down.
That's and we were low lastyear.
Speaker 2 (12:47):
Well, we, well, we were in the 340, 350 range last
year.
Speaker 1 (12:50):
Last year.
So we're 386, we're 386 today.
Yeah, we're trending up andthat's good for Hugo.
That's good for Hugo.
It's good for a lot of buyers.
It doesn't seem like that's alot, but if we can keep that
trend going, that will reallyhelp just kind of even things
out a little bit yeah.
Speaker 2 (13:06):
Remember this national statistic is is this
market really is micro focused?
Right, absolutely.
And Berks County is.
It's on the rise a little bit.
There's other areas that isjust way on the decline.
Oh yeah, way Absolutely.
So that kind of all happens up.
Speaker 1 (13:21):
California.
Things are adjusting there, yougot you know.
Texas is still doing well,florida's doing well, but
there's some other areas thatare starting to.
Speaker 2 (13:29):
They're starting to, they're feeling it, and if you
get some, of the grabs of thenation.
Speaker 1 (13:32):
It's, it's interesting a little bit.
Yeah, it's amazing.
So that was one thing.
Total housing inventory so low,that's creating competition, we
knew that.
And then house prices.
Now nationwide house pricesthey're saying year to year
change 0.2%.
Yep, so pretty much flatincrease.
Okay, now, month over monthchange nationwide at 1.3%, one
(13:52):
way through up.
Speaker 2 (13:53):
Yeah, that's national , yes.
Speaker 1 (13:55):
So it's just or above average.
Yes, we are, yes, we are.
And then, yeah, so home sold inunder a month.
This was interesting.
Yeah, nationwide is down 13.6%.
Yeah, month of a month up 2.7.
Yeah, so you know we had thatsluggish time and now of a
sudden we're seeing all thatstuff's kind of changing a
(14:16):
little bit.
Speaker 2 (14:16):
It's people getting used to the 7%.
You got it what?
Speaker 1 (14:18):
it is, I think, got it.
Everybody's still saying fivesby the end of the year.
I'm hoping, yeah, they'resaying it, I, they're saying
exactly, but they're just notfreaking doing it.
Why don't they?
Somebody just needs to go tothe interest rate person.
There's gotta be one personthat just controls that right.
You just go to them, you give50 bucks.
They could you just change therates.
Speaker 2 (14:36):
I think it's the eight ball that controls it.
Speaker 1 (14:37):
It's the eight ball.
Speaker 2 (14:38):
That's right, all right here we go Ask me again or
something.
Speaker 1 (14:42):
Yeah, okay so what was the question last time?
What was the question?
Because we're gonna end to showthe interest rates coming down
are the interest rates comingdown?
That's your question.
Yeah, um Jesus, you know what?
If I could just see, it'd begreat nice to see um Reply
harder try again.
A reply hazy?
Try again.
Speaker 2 (15:02):
Oh, the reply.
Speaker 1 (15:03):
Ape ball is this any one.
Yeah, I gotta have to stealanother one from my son.
This one's not that good.
Speaker 2 (15:08):
We need to get a crystal, so the reply is hazy
try again.
Speaker 1 (15:11):
Everything says try again.
Talk about a politicallycorrect eight ball.
Oh my gosh.
All right, man, that's it.
There we go, we got the ball inthere.
That's good, that's good.
Thanks for Pete for coming inhere.
I appreciate it, brother,absolutely.
There we go another show withPete.
Lots of numbers, lots ofinformation.
If you're a buyer, get backinto the market, you know.
Don't be afraid, get out thereand buy a house, it's gonna
(15:32):
happen.
And what's that quote?
Don't wait to buy a real estate, buy real estate and wait, and
then you'll profit off of it.
All right, that's it.
We'll see you next Thursday at7 pm.
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