From The Desk Of Cody Sperber:
Hey Clever Investor!
Happy Labor Day to you and your family from The Sperbers, and everyone on the Clever Investor team!
Whew this year is flying by…it will be 2022 before we know it.
I want to talk about the state of the market from last month’s data, but first, I’d like to talk a little bit about the meaning of Labor Day.
Labor Day is the day we take to thank workers across the country.
Way back in the 1800s during the height of the Robber-Baron fueled Industrial Revolution, the average American worked 12 hours a day 7 days a week in AWFUL conditions.
This led to the first Labor movement and eventually in the face of massive unrest, protests and violent strikes, President Grover Cleveland signed Labor Day into law in 1894.
Fun fact, more than 120 years later, no one knows who the true founder of Labor Day was.
So that’s why we take a day of rest on Labor Day to honor those that fought for things we take for granted like 8 hour work days, weekends and living wages.
Now onto the Market Analysis for August 2021.
According to Realtor.com:
- The national inventory of active listings declined by 25.8% over last year, while the total inventory of unsold homes, including pending listings, declined by 13.8%. The inventory of active listings is still down 52.8% compared to 2019.
- Newly listed homes on the market are up 4.3% nationally compared to a year ago, and 5.1% higher for large metros over the past year.
As more homes start to enter the market we will see the balance of power start to shift back towards buyers from the crazy seller’s market we have been in.
- The August national median listing price for active listings was $380,000, up 8.6% compared to last year and up 19.6% compared to 2019. Large metros saw an average price gain of 3.5% compared to last year.
The national median price continues to go up even as more houses come onto the market.
- Nationally, the typical home spent 39 days on the market in August, much less than the 56 days during the same month in 2020 and 63 days which was typical in the 2017 to 2019 period.
There is STILL a ton of demand for houses and they are still going fast when they hit the market.
So what does that all mean for you, the Clever real estate investor?
It means we’re starting to see the corrections (and not the Johnathan Frazen book).
Markets don’t typically rush from highs to lows.
Normally what happens is that the market moves through a series of adjustments.
Last year demand for housing spiked and while we’re getting close to the end of it, there are still going to be little pullbacks and corrections on the way back to “normal” housing prices.
So, keep your eye on the market, look for deals and distressed owners and line up funding as the market continues to work its way back to less overheated levels.
In the meantime, I’m gonna head back to Shannon and the kids on our last day here in beautiful Mexico and have a Margarita for all the workers!
From The Training Vault:
I want to teach you how to flip houses!
I know so much about this subject, I LITERALLY wrote the book on it.
And when you download it I’ll give you a FREE Masterclass on house flipping that goes into EVEN greater detail.
You could do worse things with your time on a day off.
This week’s recommended reading is one of the most thought-provoking books I’ve read in awhile.
If you’ve studied my stuff and listened to me for a while you know that I REALLY believe in Ownership.
This week I read a book that made me rethink EVERYTHING I thought I knew about what ownership means and how it affects our lives.
This week’s recommended reading is:
“ Mine!: How The Hidden Rules of Ownership Control Our Lives” by Michael A. Heller and James Salzman.
The basic premise of “Mine” is this:
A hidden set of rules governs who owns what–explaining everything from whether you can recline your airplane seat to why HBO lets you borrow a password illegally–and this book reveals how things become “mine”
From the early story about the “Knee Defender” product for airplanes to the breakdowns of content ownership which feel especially relevant in the streaming era, ownership will make you rethink your entire idea of what ownership is and how much it affects the day to day experiences of your life.
I especially enjoyed the debunking of certain myths of ownership like:
- First come, first served.
- Possession is 9/10ths of the law. Especially interesting given the idea of wholesaling and coming from 2 law professors.
Overall I found “Mine” both eye-opening and myth-shattering and it has given me a lot to think about.
Pick up “ Mine!: How The Hidden Rules of Ownership Control Our Lives” by Michael A. Heller and James Salzman anywhere fine books are sold.
Student Success Story:
This week’s student success story comes from Tyler Sanchez who wrote:
Closed my first deal on a multi-family property today! Thank you Cody Sperber, and the rest of the Clever Investor team that helped make this happen!
This has been a very successful month and I owe it all to the Clever Community!
Now onto the next one 💪
That’s gonna wrap it up for this week’s Clever Newsletter!
Have a Fantastic Labor Day and we’ll talk soon,