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Today’s top stories…
Real estate tokenization: The future of property ownership?
Kaplan's new BAP designation
Spring market heats up with a surge in fresh listings
🔥 Deal of the Day! 🔥: 1 bd | 1 ba | Green Valley Lake, CA (Cool A-Frame under $400k)
Today’s mortgage rate (30 Yr. Fixed): 6.96%
Real Estate's New Frontier: Tokenization
The future of property ownership is here, and it's called tokenization. This innovative approach involves slicing up properties into digital pieces on the blockchain. McKinsey predicts tokenized digital securities will hit $5 trillion by 2030, and the real estate tokenization market could skyrocket to $16 trillion by 2030, according to the Boston Consulting Group.
Tokenization opens doors to smaller investors, increases property liquidity and demand, and smart contracts automate the process, ensuring transparent and secure transactions on the blockchain. Imagine dividing a $100,000 property into 100 tokens worth $1,000 each. Suddenly, you've got a crowdfunded real estate investment.
Projects like Sabai Ecoverse and Etherland are taking tokenization to new heights by democratizing real estate for the masses, streamlining real-world processes with virtual real estate, and reducing costs while enhancing security.
Of course, there are some hurdles to jump, such as regulatory uncertainty, lack of blockchain know-how in real estate, and potential smart contract vulnerabilities. But don't let that scare you off! With the right tools and guidance, real estate tokenization could be your ticket to financial freedom.
So, are you ready to join the tokenization revolution during this crypto bull run?
Real Estate Agents: Prepare for a Seismic Shift
The real estate industry is about to experience a massive shake-up, and Kaplan is stepping up to help agents navigate the new landscape. A landmark federal court ruling in October 2023 has led to the National Association of Realtors announcing a settlement in a class action lawsuit on March 15, 2024. The result? A complete overhaul of the traditional commission model that has been in place for generations.
Under the new system, buyer agents will have to negotiate their commission directly with their clients, who will be responsible for paying them. This shift is expected to cause significant friction in the early stages, as agents and clients adjust to the new reality.
To help real estate professionals adapt, Kaplan has launched the Buyer Agency Professional (BAP) designation. This eight-hour, live online course covers essential skills, including:
Understanding buyer agency responsibilities
Crafting a compelling value proposition
Securing professional fees
Creating a menu of services
Using professional service agreements effectively
Toby Schifsky, vice president of real estate education at Kaplan, emphasizes the significance of this change, stating, "On a scale of 1-10, the National Association of Realtors' decision to change how commissions are secured is a 10. This is by far the biggest change to hit the real estate industry in more than 30 years."
The BAP designation not only educates agents on the best processes and tactics for securing their fees but also teaches them how to compete and market their services in this new environment. Potential buyers are likely to seek out agents with this designation, as it demonstrates their expertise and commitment to excellence.
The course launch comes at a time when the real estate market is showing signs of a potential rebound, with sales of previously owned homes on the rise and mortgage rates creeping down. As the industry undergoes this seismic shift, Kaplan's Buyer Agency Professional (BAP) course is now open for enrollment, ready to help agents thrive in the new era of real estate.
Mortgage Rates Inch Up, but Sellers Remain Optimistic
As the Federal Reserve holds its benchmark borrowing rates steady, mortgage rates have taken a slight upturn. For the week ending March 21, the average rate for a 30-year fixed home loan rose from 6.74% to 6.87%, according to Freddie Mac.
Despite the elevated rates, the official arrival of spring has brought a wave of positive news for the housing market. In the week ending March 16, the number of fresh listings surged by an impressive 17.8% compared to the previous year, marking the highest year-over-year growth rate in new listings since May 2021.
This influx of newly listed homes presents more options for buyers as they gear up for the spring homebuying season. However, the question remains: Will these fresh listings be enough to revitalize a housing market that has been stagnant, or will high mortgage rates continue to deter buyers and sellers?
Although the Fed is expected to cut rates three times this year, relief may not come as quickly as many would like. As a result, budget-conscious home shoppers may adopt a "wait and see" approach, closely monitoring rates and waiting for the perfect moment to make their move.
The hesitancy among buyers has had a significant impact on home prices, with median list prices remaining flat for the week ending March 16 compared to the same period last year. To attract buyers, some sellers are adjusting their asking prices, with the share of price-reduced listings rising by 1.4% in February compared to the previous year.
While fresh listings are on the rise, overall active inventory has also experienced a significant boost, jumping 23.8% above year-ago levels for the week ending March 16. This increase in available options is a welcome change for home shoppers, although total housing inventory still remains nearly 40% below typical pre-pandemic levels from 2017 to 2019.
As the spring market kicks into high gear, buyers will need to weigh the trade-offs between potentially lower mortgage rates and the traditional peak in home listing prices during the summer months. Some buyers are already seizing the opportunity, with homes spending an average of two days less on the market compared to the same period last year.
Looking ahead, progress in inflation and an increase in home supply could help the housing market return to a more balanced and affordable state. As these factors begin to move in the right direction, many buyers may find themselves in a more favorable position to make their homeownership dreams a reality.
🔥 Deal of the Day! 🔥
Price: $395,000
The Juniper Hideout A-Frame offers an idyllic vacation experience, combining the allure of a cozy, stylishly furnished cabin with the excitement of outdoor adventure. Its serene location on a spacious double lot provides not only tranquility and privacy but also easy access to a variety of activities, from fishing and kayaking at nearby Green Valley Lake to exploring the scenic trails of the San Bernardino National Forest. The cabin's proximity to Snow Valley, Big Bear, and Lake Arrowhead, along with local shops and restaurants, ensures that guests have the perfect blend of seclusion and convenience. With its established Airbnb status, inviting living spaces, and a scenic balcony, the Juniper Hideout is a standout choice for anyone looking to explore the beauty and adventure of the area.
Airdna data:
Estimated monthly payment: $2,540/month (if financed)
Estimated monthly revenue: $2,858/month
Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.
See you tomorrow!
✍️ Brett