Trust This. Baby Boomer Trends – Florida Housing Spikes
 1 Big Thing. Retiring Baby Boomers Look Ahead Baby [...]
Trust This: NAR’s Legal Labyrinth Unraveled
1 big thing: NAR's Legal Labyrinth The Department of Justice [...]
1 big thing: The Retiring Baby Boomer Looks Ahead
Baby boomers are likely to live longer than earlier generations have, and they’re worried about having enough money to cover housing, care, and other expenses for the duration.
Why it matters: Boomers make up 20% of the U.S. population overall but represent 39% of U.S. homebuyers and 52% of sellers. As a real estate professional, being attuned to the needs of this massive demographic will keep you ahead of the curve.
They’re calling it “Peak 65:” Every day this year, more than 12,000 people will turn 65. (That’s 4,380,000 by year’s end if you’re counting.) All boomers will have turned 65 by 2030.
Breaking down the “retirement trifecta:” Leaving behind a career and the paychecks that come with it is scary. Boomers are weighing their current assets and investments against their expectations for the next 20 or even 30 years. Top of mind are questions about:
Income: Boomers want steady, reliable, and sufficient income streams to ensure they can maintain their standard of living even in the face of inflation and rising costs.
Paying for care in late old age: Who’ll look after them when they become frail? What medical expenses can they expect? And how will they pay for it all?
Housing: Safe housing at every stage post-retirement is a must. It’s also likely to be a senior’s largest expense, especially if they move into assisted living or other type of care facility.
Aging in place isn’t cheap either: Most boomers (78%) say they want to age in their own homes. Most existing homes will require some level of adaptation to accommodate their evolving needs, which costs money.
Boomers will also need funds for general upkeep and repairs on their homes, which aren’t getting any younger either.
Those homes are also a source of wealth: America’s boomers currently have about $13 trillion in home equity, a number that’s expected to rise to $20 trillion by the end of the decade.
The importance of relationships: Boomers value relationships with advisers and others who shape their financial well-being. They’re looking for providers who understand retirees’ needs and who’ll work with them to find the best solutions.
The bottom line: The time for digging into the needs and challenges of boomers — from mortgage planning to home-building — is now. These efforts can benefit real estate professionals and investors well into the future as boomers will continue to shape many aspects of the real estate industry for years to come.
2. Motivated Sellers Spiking Home Inventory in Florida
Contrary to nationwide trends, the number of available homes in Florida — particularly those of “motivated” sellers — has increased dramatically.
Why it matters: Although over the past few years, Florida had been an outlier with sustained price growth, the state is now experiencing a surge in inventory, and home prices are stagnant.
An overdue correction?: Redfin’s chief economist Daryl Fairweather noted that “Florida is very unique” in that it “actually sustained price growth after interest rates went up.”
Fairweather calls the stagnant price growth in Florida “a bit overdue.”
The motivation looks widespread: With over 5,600 Zillow listings in Florida that include the keyword “motivated” in the description, it’s fair to characterize the market as flooded with sellers eager to unload their property.
Increased median time on the market: In addition to keeping price growth stagnant, motivated sellers have also contributed to a marked increase in the span of time homes have spent on the market.
2022: Median time for a Florida home on the market: 24 days.
2024: Median time for a Florida home on the market: 57 days.
The cost of owning a home in Florida: Redfin’s Fairweather points out that several factors are contributing to the changes in the Florida market. The state is becoming synonymous with:
Rising HOA fees
Rising insurance premiums (if you can find an insurer)
Rising property taxes
Homebuilders driving inventory: It isn’t only existing homes people are eager to sell. Homebuilders are doing their fair share as they seek to provide available homes for those entering the market.
The bottom line: Florida enjoyed impressive price growth in recent years, but now — thanks to motivated sellers and increased inventory — the market’s catching up.
3. Catch up fast
U.S. existing home resales dipped, increasing inventory, but prices remain high. MPA Magazine
New home sales dropped, too, along with unemployment claims. Reuters
VA to roll out a temporary fix for the buyer commission issue that’s coming. HousingWire
Three Florida cities made the list of best places to live, albeit at lower rankings than last year: Melbourne (#15 to 49th place), Orlando (49th to 68th), and Daytona Beach (52nd to 96th). U.S. News & World Report
A new South Carolina law cracks down on wholesaling by codifying what we’ve been advising wholesalers to do for years in Florida. Bigger Pockets
In face of multiple lawsuits, Keller Williams changes course on changing course on its profit sharing plan that we discussed in last week’s edition. HousingWire
4. Closing Thought
Yesterday, Sean Foley spoke to a group of local CEO’s and business leaders at a luncheon sponsored by First Horizon Bank. I was fortunate to be invited and even ask Mr. Foley a question.
He shared his thoughts on primate behavior, neuroscience, and child-rearing, among other far-reaching topics.
He told the story of one of his Pro-Tour players who was at the bottom of the pro standings and within five tournaments of losing his touring card.
After coaching him for eight months, the pro has risen over 100 places in the rankings, and is heading for both the British Open and the Summer Olympics in Paris.
And he’s more miserable now than he was when he was close to losing his touring card.
Why it matters: I asked Foley how he coached the pro to focus on the gain instead of the gap since I sometimes have the same issue with crewmembers and clients who are so focused on where they want to go, they never celebrate how far they’ve come.
He talked of the practice of gratitude. Being grateful for what you have and taking stock of that will refocus your prefrontal cortex on celebrating the gains.
Gratitude will also quiet the amygdala’s fear of the gap ahead of you.
Meditation also helps clear the mind so it can focus on the gap in a constructive way, preventing the fight-or-flight emotions of the body’s limbic system from making you miserable.
Finally, sleep quality — going to sleep and waking at the same time each day — keeps the mind clear and focused to prevent spiraling into misery over all that stands between you and your goals.
He also pointed out another term for “failure” is “feedback.”
His son plays lacrosse and missed a goal in a recent game.
When he asked his son for the feedback he’d gotten from the missed shot, his son said that — as he got closer to the goal — the goalie looked larger, and the goal got smaller.
He pointed out to his son that it’s a normal perception and suggested that training should be done with a smaller goal and lots of stuff in front of it.
The bottom line: Meditate, focus on sleep quality, practice gratitude, and anticipate the reality of what you’ll be facing. Then train for that reality to attain top performance and a happy life.
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue! đź‘‹
1 big thing: The Retiring Baby Boomer Looks Ahead
Baby boomers are likely to live longer than earlier generations have, and they’re worried about having enough money to cover housing, care, and other expenses for the duration.
Why it matters: Boomers make up 20% of the U.S. population overall but represent 39% of U.S. homebuyers and 52% of sellers. As a real estate professional, being attuned to the needs of this massive demographic will keep you ahead of the curve.
They’re calling it “Peak 65:” Every day this year, more than 12,000 people will turn 65. (That’s 4,380,000 by year’s end if you’re counting.) All boomers will have turned 65 by 2030.
Breaking down the “retirement trifecta:” Leaving behind a career and the paychecks that come with it is scary. Boomers are weighing their current assets and investments against their expectations for the next 20 or even 30 years. Top of mind are questions about:
Income: Boomers want steady, reliable, and sufficient income streams to ensure they can maintain their standard of living even in the face of inflation and rising costs.
Paying for care in late old age: Who’ll look after them when they become frail? What medical expenses can they expect? And how will they pay for it all?
Housing: Safe housing at every stage post-retirement is a must. It’s also likely to be a senior’s largest expense, especially if they move into assisted living or other type of care facility.
Aging in place isn’t cheap either: Most boomers (78%) say they want to age in their own homes. Most existing homes will require some level of adaptation to accommodate their evolving needs, which costs money.
Boomers will also need funds for general upkeep and repairs on their homes, which aren’t getting any younger either.
Those homes are also a source of wealth: America’s boomers currently have about $13 trillion in home equity, a number that’s expected to rise to $20 trillion by the end of the decade.
The importance of relationships: Boomers value relationships with advisers and others who shape their financial well-being. They’re looking for providers who understand retirees’ needs and who’ll work with them to find the best solutions.
The bottom line: The time for digging into the needs and challenges of boomers — from mortgage planning to home-building — is now. These efforts can benefit real estate professionals and investors well into the future as boomers will continue to shape many aspects of the real estate industry for years to come.
2. Motivated Sellers Spiking Home Inventory in Florida
Contrary to nationwide trends, the number of available homes in Florida — particularly those of “motivated” sellers — has increased dramatically.
Why it matters: Although over the past few years, Florida had been an outlier with sustained price growth, the state is now experiencing a surge in inventory, and home prices are stagnant.
An overdue correction?: Redfin’s chief economist Daryl Fairweather noted that “Florida is very unique” in that it “actually sustained price growth after interest rates went up.”
Fairweather calls the stagnant price growth in Florida “a bit overdue.”
The motivation looks widespread: With over 5,600 Zillow listings in Florida that include the keyword “motivated” in the description, it’s fair to characterize the market as flooded with sellers eager to unload their property.
Increased median time on the market: In addition to keeping price growth stagnant, motivated sellers have also contributed to a marked increase in the span of time homes have spent on the market.
2022: Median time for a Florida home on the market: 24 days.
2024: Median time for a Florida home on the market: 57 days.
The cost of owning a home in Florida: Redfin’s Fairweather points out that several factors are contributing to the changes in the Florida market. The state is becoming synonymous with:
Rising HOA fees
Rising insurance premiums (if you can find an insurer)
Rising property taxes
Homebuilders driving inventory: It isn’t only existing homes people are eager to sell. Homebuilders are doing their fair share as they seek to provide available homes for those entering the market.
The bottom line: Florida enjoyed impressive price growth in recent years, but now — thanks to motivated sellers and increased inventory — the market’s catching up.
3. Catch up fast
U.S. existing home resales dipped, increasing inventory, but prices remain high. MPA Magazine
New home sales dropped, too, along with unemployment claims. Reuters
VA to roll out a temporary fix for the buyer commission issue that’s coming. HousingWire
Three Florida cities made the list of best places to live, albeit at lower rankings than last year: Melbourne (#15 to 49th place), Orlando (49th to 68th), and Daytona Beach (52nd to 96th). U.S. News & World Report
A new South Carolina law cracks down on wholesaling by codifying what we’ve been advising wholesalers to do for years in Florida. Bigger Pockets
In face of multiple lawsuits, Keller Williams changes course on changing course on its profit sharing plan that we discussed in last week’s edition. HousingWire
4. Closing Thought
Yesterday, Sean Foley spoke to a group of local CEO’s and business leaders at a luncheon sponsored by First Horizon Bank. I was fortunate to be invited and even ask Mr. Foley a question.
He shared his thoughts on primate behavior, neuroscience, and child-rearing, among other far-reaching topics.
He told the story of one of his Pro-Tour players who was at the bottom of the pro standings and within five tournaments of losing his touring card.
After coaching him for eight months, the pro has risen over 100 places in the rankings, and is heading for both the British Open and the Summer Olympics in Paris.
And he’s more miserable now than he was when he was close to losing his touring card.
Why it matters: I asked Foley how he coached the pro to focus on the gain instead of the gap since I sometimes have the same issue with crewmembers and clients who are so focused on where they want to go, they never celebrate how far they’ve come.
He talked of the practice of gratitude. Being grateful for what you have and taking stock of that will refocus your prefrontal cortex on celebrating the gains.
Gratitude will also quiet the amygdala’s fear of the gap ahead of you.
Meditation also helps clear the mind so it can focus on the gap in a constructive way, preventing the fight-or-flight emotions of the body’s limbic system from making you miserable.
Finally, sleep quality — going to sleep and waking at the same time each day — keeps the mind clear and focused to prevent spiraling into misery over all that stands between you and your goals.
He also pointed out another term for “failure” is “feedback.”
His son plays lacrosse and missed a goal in a recent game.
When he asked his son for the feedback he’d gotten from the missed shot, his son said that — as he got closer to the goal — the goalie looked larger, and the goal got smaller.
He pointed out to his son that it’s a normal perception and suggested that training should be done with a smaller goal and lots of stuff in front of it.
The bottom line: Meditate, focus on sleep quality, practice gratitude, and anticipate the reality of what you’ll be facing. Then train for that reality to attain top performance and a happy life.
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue! đź‘‹
1 big thing: NAR's Legal Labyrinth
The Department of Justice (DOJ) has re-opened its antitrust probe into the National Association of Realtors (NAR). This comes on the heels of NAR’s $418 settlement agreement in several antitrust lawsuits alleging a conspiracy in how buyer and seller agents’ fees are disclosed and paid.
At issue for the DOJ: Whether NAR’s rules for agent commissions violate antitrust laws and trigger inflated home prices.
Why it matters: Uncoupling buyer’s and seller’s agent commissions could lower the cost of selling — and therefore buying — homes by a lot. Such an outcome would also affect how agents are paid for their work.
The DOJ wants to make it illegal for a buyer’s and seller’s broker to discuss commission splitting at all.
Under the proposed NAR settlement, while they wouldn’t be allowed to disclose the commission splits up front on the MLS, they could still put them on their websites and business cards and at least tell each other what they would pay in a commission split.
DOJ concern over NAR practices has trod a long and winding road in the last two decades.
2005: DOJ sues NAR, claiming anticompetitive practices
2008-2018: NAR agrees to change some of its listings practices
2019-2020: DOJ re-opens the investigation but soon settles, requiring only that NAR disclose more information about broker fees in sales listings
2021-2024: DOJ re-reopens the investigation, requesting more information about broker commissions and real estate listing practices; NAR wins a federal court ruling to shut it down; DOJ appeals
April 5, 2024: The US Court of Appeals in DC overturns the lower court’s decision.
The result: The DOJ should soon receive previously undisclosed NAR documents, which could provoke further legal action or even new regulations.
DOJ’s international perspective: One factor that seems to have piqued DOJ’s interest in NAR is the fact that real estate commissions in the U.S. are higher than in other countries.
What’s next: The DOJ hopes its renewed investigative efforts will reduce the expenses associated with real estate transactions for homeowners and buyers.
Tough times for NAR: In addition to the March settlement and the re-opening of the DOJ inquiry, the powerful group has had a spate of recent harassment allegations and resignations to deal with.
Its reputation is fraying (to say the least), and the organization is on the ropes.
The fact that NAR failed to run the commission settlement by the DOJ first to ensure it would also satisfy the Department indicates that the Association is playing checkers in a Mahjong tournament.
The bottom line: The entire real estate industry needs to be poised to manage a potential paradigm shift. Whether NAR will lead in this brave new world remains to be seen.
2. Commercial Real Estate in Decline Is Bad News for Cities
Commercial property values are undergoing a sharp decline nationwide. For many cities, that’s forcing stressful cutbacks.
What’s happening: In cities like San Francisco and Chicago, commercial properties are sold for a fraction of their original purchase price.
This is because of lower property valuations, which, in turn, can lead to diminished tax collections and strained municipal budgets.
Why this matters: Reduced commercial tax revenue means cities can no longer afford to cover essential services (think transportation, education, healthcare) and infrastructure maintenance.
The “doom loop”: There are no easy answers here.
With property values and tax revenue falling, cities may need to increase taxes.
With increased taxes, more businesses and residents could decide to relocate — or fewer decide to move in.
With fewer resources, cities face tough choices about which essential services to continue offering.
More people will consider leaving when a city no longer offers nice parks, high-quality healthcare, or transportation.
The disinvestment trend: Federal aid and fiscal cushions municipalities have relied on in recent years are less available.
Some cities are trying to be proactive by postponing maintenance and public projects, but that’s just kicking the can down the road.
The long-term implications: Many cities could opt for significant urban restructuring to move forward. For their part, developers are rethinking their approach:
They’re considering new uses for vacant spaces and finding ways to boost value, converting under-used office buildings to residential or mixed-used units, for example.
They prioritize green building standards, which could attract new investors and tenants.
They’re thinking past commercial properties to alternative sectors like industrial real estate.
The bottom line: If commercial property values continue to sink, cities will face increasingly difficult choices. They’ll need creative solutions to thwart the downward spiral.
3. Catch up fast
The American Land Title Association, representing hundreds of thousands of title insurance agencies and insurers, has sent a letter to FinCEN recommending changes to FinCEN’s proposed rule to require all entities and trusts to disclose their ultimate beneficial owners when they purchase U.S. real estate. ALTA
Three strategies to mitigate risks in real estate investing. MPAMag
FinCEN renewed the Geographic Targeting Order. If an LLC, corporation, partnership or other legal entity (not a trust) uses cash to purchase a residential property for $300,000.00 or more in Miami-Dade, Broward, Palm Beach, Hillsborough, Pasco, Pinellas, Manatee, Sarasota, Charlotte, Lee, or Collier Counties, then the closing agent is required to discover and disclose the names of the beneficial owners of the buyer to FinCEN. FinCEN
Inflation is coming down in every sector except housing, and rents are the driving factor as those in the northeast and midwest refuse to come down. Bloomberg (gift link good for 7 days only)
Seven reasons why the housing market hasn’t recovered from the pandemic. Bigger Pockets
4. Closing Thought
Rocks aren’t obstacles in the river of life. They’re rugged materials used to build a life.
Why it matters: Visualizing rocks in this way helps us get through the days and build our year.
In the Entrepreneurial Operating System’s lexicon, “rocks” are what most businesses would call “projects” or “quarterly goals.”
At each weekly, quarterly, and annual meeting, we come together as company leaders to identify, discuss, and solve issues.
Issues aren’t always bad. They’re just issues we’re facing that, if solved, would help the company achieve its mission and the owner’s vision.
The solution to many issues requires uncovering a rock or two that must be chipped away weekly over the next quarter.
I like to think that it also comes from the old story about the professor lecturing his students with a big jar of rocks, pebbles, sand, and water.
The rocks are the big things that matter in your business.
If you spend too much time on the sand and pebbles, you won’t have time for the rocks.
So we keep our rocks front and center before us, discussing them weekly at our meetings and holding each other accountable to ensure the person in charge of each rock will chip away at the stone until it’s completed.
When building a business, remember that the foundation must be durable. Rocks are a strong part of that foundation.
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.Â
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue! 👋