The Brad Weisman Show
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! #TheBradWeisman #Show #RealEstateRealLife
The Brad Weisman Show
Exploring Real Estate Market Trends and Opportunities w/ Pete Heim
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
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Welcome to The Brad Weisman Show (formerly known as Real Estate and YOU), 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 #realestateandyou
Credits - The music for my podcast was written and performed by Jeff Miller.
Hello, this is Brad Wiseman. You listen to Real Estate and you. We are back in the studio again. My son makes fun of me every time I say that, by the way, but we are back in the studio and we are back here with Pete Heim. We are giving you an update on the market to tell you what's going on. Some things are starting to change. Everything changes. There's a song. It says that. I think Everything changes. Ok, but that's not that kind of podcast, so let's get into it right away. There was there's 386 homes in the market right now in Brooks County. So, that is creeping up. Yeah, look, here goes a buyer now, so he's like that's good, he couldn't give a shit before. Now, all of a sudden, now he's actually sitting there going. Oh, that's important. This show is actually good. Wipe up the drool that's coming out of there. It's funny how you come, you become a buyer and all of a sudden things change, right, that's funny. So let's dive in to what the market's doing. There's some things shifting, some things going on. I see and I think we just talked about it a little bit One of the things that I've noticed and we'll just talk about that and then you can tell me what you see is I'm noticing the quality of the buyers are not that they're bad quality, it's just going back a little bit to where things were and I'm hoping that this gives the buyers that quit, the buyers that are discouraged. It gives them a little bit of a feeling of you know what. Maybe I can make this happen again. You know what I mean Because I saw in my listing I have right now several bunch of showings two FHA offers came in. Nothing crazy. They're not like all over the place with price and things like that. They're good offers, solid. So is that something I'm seeing? Also, Hugo was looking at a house and he decided to pass on it, but the listing agent was all over me about putting an offer together, and that hasn't happened for a while, Therefore for the longest time. If you told me you had interest in the property, they might call you and let you know that there's three offers. You've got to stay in touch with them, so it was kind of interesting that.
Speaker 2:So you've seen that at all. You've seen any softness. It's what we talked about. Now that the craziness is starting to slow down a little bit, these poor FHA VA buyers now are getting an opportunity to actually just get in. And for those who don't know what FHA VA means, it's just a government backed government and shared loan where the appraisal might require some repairs. A handrail, and it's safety stuff. Yeah, it's all safety stuff.
Speaker 1:We're not talking crazy, it's peeling paint, it's handrails, it's all that kind of stuff and, like I said before, we never really were that concerned about it, that's right Until we had these buyers that had capes on that came in to write up an agreement. It's flying in with over full price cash. Yes, exactly, they had a big B on the back. 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 normal situation.
Speaker 2:It is Right, yeah, and it was funny. The KCM that just came out, was it A week ago, maybe, talking about buyer traffic? Returning to seasonality, Did you? See, I didn't have the graph today. I'm sorry. Was it the what's it? The. I compared the last five Mays Did you see that?
Speaker 1:No, I did not see that.
Speaker 2: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 into pandemic right. 2022 was 192. And then 2023, 202. So that's back to pre-pandemic numbers, where there's buyer traffic.
Speaker 1:Right, right right.
Speaker 2:People are kind of used to 7% interest now and there's more people coming out.
Speaker 1:That's amazing, yeah what. Yeah it's amazing, but that's good and I think. But I think what's going to start happening is, as these houses are starting I mean, I've been doing price reductions, I've been doing you know we're seeing that happen. It's not just like any, it's not like put any listing out there. It doesn't matter what it looks like or how it is, and it's going to sell, that's right. So it's interesting.
Speaker 2:It's as important now as it ever was. Very much so. You know we always preach about pricing it properly. You know too low. You know what too low means. Too low means people think it's something wrong too high is like they're crazy land. It's got to be right and pricing it right now, as you know we talked about, is difficult because a lot of the comps are coming off the crazy. We call those the unicorn years.
Speaker 1:Yeah, yeah, absolutely the unicorn years. I love that KCM used that. I love.
Speaker 2:I'm stealing that. You can steal that.
Speaker 1:That's fine, which is really cool, I won't tell them, please. Thank you. No, no problem.
Speaker 2:Yeah, so back to what they listed it for. Yeah, it was what what the seller was willing to take. Yeah, and now, before it got into a bid, war craziness, yeah.
Speaker 1:And I think you're going to see more of that. I think also, sellers have to be careful that they're not listing their house at what the other home sold for, but listing their house at what the other home was listed at, exactly Because there's a huge difference and we talked about this before and I just did that on my new, on one of my newest listings. We the. It was interesting that the sales price on on three of the properties around it that were comps was around 260, 255. Right, but when I look back at the listing price, it was 230s, 235, 240 were the listing price. So what I said to them is let's not look at what they got, let's look at where they priced it. Right. I can guarantee you the I will sell that house for in the 260s. That's right, because I listed it at the 240 range and it's going to end up getting an offer over 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 afraid to make offers, and so are realtors as buyer agents. We're a little scared Like yeah, like what You're going to go dollar under.
Speaker 2:I wouldn't do that you won't get it. Yeah, oh my.
Speaker 1:God, yeah, that's when you got to use the eight ball. You go, just use the eight ball when next time? Right, yeah, that's what that's there for. That's for making offers.
Speaker 2:I have another tip on this topic and maybe this is more for other realtors to tell their buyers. How many times have you gotten a comment like my buyer is somewhat interested, but let me know if something else comes in, absolutely, absolutely. And my response is why? Yeah, why do you want to compete?
Speaker 1:Yeah, I'll do it right away. Just come in, Because here's the thing too, is that you know there's nothing that says that the seller has to wait that's right For more offers If they want to get it done and they want to stop showing because you know showings are not fun, Right? I mean, nobody likes to have to put their dog in a crate, put the kid in the car, drive around the block for a half an hour, you know. Or if it's got 20 showings in one day, you're getting a hotel for the weekend. I mean, seriously, it's craziness. So that's not fun If I get it, if I was a seller and I got a good offer my first offer and there was 20 showing signed up, I'd probably take it. Yeah, yeah, I don't want to deal with that, yeah.
Speaker 2:So, yeah, so your realtor's out there, tell your buyers. If there's any chance, there's an interest that they would think they would want it, just put it in. Yeah, absolutely. Don't. Don't. Don't say oh, let me know if there's others. I mean it's. It's actually the service where you're doing. Yeah, right Because you're making them get into a position where they're going to have to compete Yep.
Speaker 1:Absolutely.
Speaker 2:So it's it's. We're coming back into an environment where you're not going to have to do that as much anymore. Yeah, it's weird, I think it's good advice just to tell them to just go ahead and submit. I agree, totally agree. Okay, absolutely, absolutely so numbers.
Speaker 1:Yeah, okay, tell me what numbers.
Speaker 2: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 Berks County 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 long it takes for all the supply to go away 0.7 months in Berks and 0.8 in it. If you at, if you took the city out, which is kind of weird.
Speaker 1:Yeah, it's not even right, it's not even a little longer. Yeah, not much, not much it's the same.
Speaker 2: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 average sale price Berks County to 77 and change that's over. Uh, it's a 7% increase.
Speaker 1:Interesting. So where it's seven, so 7% over the last last year's six months for six months and then we talked about it's amazing our prediction on Berks.
Speaker 2: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 seven and eight.
Speaker 1:Yeah, yeah. But what's interesting? What could happen there, though, if the rates would stay where they are, or if things start to soften up a little bit, going into the fall, we might end up that might eke back a little bit.
Speaker 2:It might eke back a bit. You see, we'll see.
Speaker 1:Still great. It's still 4%. It's unreal yeah.
Speaker 2:Where else you making that money. But if you take the city out of the equation it's 314 in the county.
Speaker 1:That's amazing. Yeah, that's incredible, and that was from 289.
Speaker 2:That's amazing, yeah, so it's about 8%.
Speaker 1:So that's a great place for my quote. Oh, great place for the quote of the day.
Speaker 2:This is the best quote. This is a great quote.
Speaker 1: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 have never heard this quote in 30 some years.
Speaker 2:You haven't either which is amazing.
Speaker 1:Nope, it's, here we go. Don't wait to buy real estate. Buy real estate and wait Show's over.
Speaker 2:That's it. Show's over Done. That's what you gotta do.
Speaker 1:Cancel the podcast. We're done, that's it. We don't need to come out anymore. That's all you need to know. That's it. All right, show's over. Throw away the eight ball, but no, that's amazing. So just don't wait to buy real estate. Buy real estate and wait, dude, that's great. So the person that waited last year went from 280 something to three. Was it 314?
Speaker 2:Yeah, two, I take. We took the city out 289 to 314.
Speaker 1:I had a guy on Facebook. That same house I had a guy on Facebook that said to me that I was putting numbers up or some kind of post that I did, and his comment was this is the worst time to buy real estate. If you buy now, you're stupid, oh my goodness. And I was like no, you should look in the mirror, sir sir, the one that's stupid.
Speaker 2:Yeah, don't wait to buy real estate.
Speaker 1:There you go. Yeah, I should have quoted that.
Speaker 2:I'm going to put that back you know what, for as long as we've been doing this, I never heard that. I mean, we reach that, and we say that in a different way because you should never wait, but that is the best, best quote ever.
Speaker 1:Best quote ever. Best quote ever. You go. Best quote ever. Write that down. That's right, I already did you already did, say he's taking notes now.
Speaker 2:See what happens when you're a buyer.
Speaker 1:That's right, it's amazing.
Speaker 2:But what also says about don't be fooled by what the headlines are saying about pricing. Don't be fooled. Exactly, don't be fooled. Don't be fooled, no, and it's not dropping. No, it's not, no, and I don't know if it's going to.
Speaker 1:No, if it's similar to what stays low. The only price range that has gotten a little touched is the upper price range $4.5,500 plus. Yeah, into the sixes? Yep, absolutely, I mean, those are the ones that are starting to hurt, and I think the reason for 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 the interest rates increased the speed on that ceiling. That's what it is.
Speaker 2:It's more the qualification of the interest rate and combined with the higher price and taxes. Oh and taxes too.
Speaker 1:See, some of these taxes that are $15,000 a year you start putting in. You know, when you were looking at 3.5% interest rate, you can swallow the $15,000 a year. You'd be like, okay, I can deal with this, it's not a bad payment as a whole. And then all of a sudden they jack up to 7%. And now a house that was and I did numbers on this you buy a $600,000 in our house and you put down, you know, let's just say, 20% of whatever it would be Before. Your payment would have been like $3,400 of taxes and everything whatever. It is $3,500. Now some of those numbers they're in the fives, like $5,200 a month. It's crazy. So you know, it's just compounds because of the price range. That's it. Yeah, it's just compounds.
Speaker 2:So it's amazing Any other numbers you have. That's the numbers I have for you today. I think that's all I could have handled.
Speaker 1:So yeah, so I'm looking at. There is one thing here I just want to go. I was looking at keeping current matters. Fewer sellers are putting their homes in the market right now. That's a big reason. Housing supplies are limited. So year over year change In inventory this is nationwide, nation. We are down 25% again in inventory. That's now. That's national. So all these little microcosm, these little micro areas like 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 last year.
Speaker 2:Well, we, well, we were in the 340, 350 range last year.
Speaker 1:Last year. So we're 386, we're 386 today. Yeah, we're trending up and that's good for Hugo. That's good for Hugo. It's good for a lot of buyers. It doesn't seem like that's a lot, but if we can keep that trend going, that will really help just kind of even things out a little bit yeah.
Speaker 2: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 is just way on the decline. Oh yeah, way Absolutely. So that kind of all happens up.
Speaker 1:California. Things are adjusting there, you got you know. Texas is still doing well, florida's doing well, but there's some other areas that are starting to.
Speaker 2:They're starting to, they're feeling it, and if you get some, of the grabs of the nation.
Speaker 1: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 prices they're saying year to year change 0.2%. Yep, so pretty much flat increase. Okay, now, month over month change nationwide at 1.3%, one way through up.
Speaker 2:Yeah, that's national, yes.
Speaker 1:So it's just or above average. Yes, we are, yes, we are. And then, yeah, so home sold in under 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 that sluggish time and now of a sudden we're seeing all that stuff's kind of changing a little bit.
Speaker 2:It's people getting used to the 7%. You got it what?
Speaker 1:it is, I think, got it. Everybody's still saying fives by the end of the year. I'm hoping, yeah, they're saying it, I, they're saying exactly, but they're just not freaking doing it. Why don't they? Somebody just needs to go to the interest rate person. There's gotta be one person that just controls that right. You just go to them, you give 50 bucks. They could you just change the rates.
Speaker 2:I think it's the eight ball that controls it.
Speaker 1:It's the eight ball.
Speaker 2:That's right, all right here we go Ask me again or something.
Speaker 1:Yeah, okay so what was the question last time? What was the question? Because we're gonna end to show the interest rates coming down are the interest rates coming down? That's your question. Yeah, um Jesus, you know what? If I could just see, it'd be great nice to see um Reply harder try again. A reply hazy? Try again.
Speaker 2:Oh, the reply.
Speaker 1:Ape ball is this any one. Yeah, I gotta have to steal another one from my son. This one's not that good.
Speaker 2:We need to get a crystal, so the reply is hazy try again.
Speaker 1:Everything says try again. Talk about a politically correct eight ball. Oh my gosh. All right, man, that's it. There we go, we got the ball in there. That's good, that's good. Thanks for Pete for coming in here. I appreciate it, brother, absolutely. There we go another show with Pete. Lots of numbers, lots of information. If you're a buyer, get back into the market, you know. Don't be afraid, get out there and buy a house, it's gonna 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 at 7 pm.
