On this episode of The Walk Thru, Byron Lazine and The Broke Agent sit down with Taya DiCarlo and Dan Oneil to discuss recession, the Fed raising the rates (again), the top 20 emerging markets, and top takeaways from HubSpot’s Instagram Report.
We also have some big news today: Taya announced that she is launching a podcast on the BAM network! Taya credits our (loving) harassment for this move, and we’re ready for it.
Recession
First up, the GDP fell 0.9% in the second quarter, following last quarter’s decline.
Those two straight declines aren’t as deep as the ones we saw in 2020, but we haven’t seen a decline in six straight quarters. Worried consumers are looking at this CNBC chart as clear and discouraging evidence of a recession. What they need to see is this KCM chart showing the clear uptick in home values during the 2020 recession.
I think it’s really important that everybody remembers that real estate is its own economy…. I’m a firm believer that if you buy real estate you should hold onto it as long as you can and only sell if you absolutely need to.… We may see a blip in home values, but over time, we know that eventually, it continues to appreciate.
The Fed
Yesterday, the Fed again raised the interest rate by 75 basis points to a range of 2.25% to 2.5%–following a 75 bps hike in June and two smaller rate hikes in March and May of this year. So, what does that mean for the people in our database? How does this affect their money?
Here are four ways increased interest rates affect the economy:
- Increased rates will have an impact on stock market investors but mostly a psychological one—a freeze effect.
- It impacts credit card interest, making debt that much more painful for consumers.
- It can lead to a mortgage rate hike, making it even harder to buy a home.
- Savings rates increase, but not enough for most Americans to see a real gain.
So, knowing all that, what can we do to not only educate people but get more of them investing in real estate?
I’ve been getting a ton of phone calls from buyers and sellers that everybody’s just freezing….They’re getting this information from online and watching the news and they’re not educating themselves or they’re not watching the right people. So, continue to educate our clients and the consumer.
On next week’s The Real Word, we’ll offer an example of how to take a major headline tied to politics and use it to get more attention for your content.
Top 20 Markets
Smaller metros across the country are catching the attention of buyers. The Wall Street Journal and Realtor.com released their 2022 list of the top 20 emerging U.S. housing markets.
These markets have an outdoorsy vibe, low unemployment rates, and economies friendly to small businesses. The trend favoring these markets is likely to continue for a variety of reasons—one of them being the growing number of people being priced out of their markets due to higher housing costs and high mortgage rates.
Hubspot Instagram Report
For our fourth topic, The Broke Agent goes through the latest eye-opening stats from HubSpot’s Instagram Report.
I saw Chris Smith’s tweet, and then we did an entire article on this…It’s a two-hour report that BAM and Chris did a great job of breaking down. So, these are some Instagram statistics for you… Everyone’s gotta follow Chris Smith, by the way. This guy is a marketing genius.
Byron, The Broke Agent, Taya, and Dan will all be together in just a few weeks at the Tom Ferry Summit. If you don’t have a ticket yet, we’ve got the cheapest tickets in the game, so click on the link below to learn more.
Watch the full episode for more.
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