The Real Estate Business in 2021 Prognosticated by Barry Habib- EP112

During this episode of the Lab Coat Agents podcast, host Jeff Pfitzer speaks with Barry Habib, the best prognosticator of the existing Real Estate and Mortgage industry. He is the CEO of the MBS Highway and three times Crystal Ball Award Winner by Zillow and Pulsenomics for giving the most accurate Real Estate forecasts out of 150 of the top economists in the United States.  Episode Highlights: Jeff asks Barry to tell the listeners about his entrepreneurial journey, industry experience, and the challenges he has faced. Barry wrote a book called, Money in the Streets, which was the number one Amazon bestseller. It is a wonderful book with regards to finding real estate opportunities. There are so many opportunities to help clients identify. In the market now, “You have to win the home, you don’t just buy it.” Barry produced Criss Angel in Las Vegas and Rock of Ages on Broadway, as lead producer and managing partner, which became worldwide. He was in the mortgage sector for many years and had his own company which he built and sold. He was ranked as the top producer in the United States several times and he was named “Mortgage Professional of the Year” in 2019.  Barry talks about the importance of identifying and addressing points of friction in business. Barry states that you win trust in two ways: 1) Not being afraid to tell everything that is bad and 2) Having true knowledge. If we learn to establish trust quickly, we will have more transactions, we'll be happier in our relationships, and we will be more successful in general. Barry says a real estate agent should be like an advisor, willing to present the good and the bad. He says to put yourself in the position of the buyer when you think about what they would want and need to know. The demand side of the industry is new households being formed and the supply side is households being completed by builders.  The first time home buyer is a critical element in supply and demand. They don’t replace inventory.  According to Zillow, the median age of the first-time home buyer is 33 years old. Looking at birth rates, over the next five years, there is going to be an even greater influx of first-time home buyers who will be depleting the inventory. In regards to affordability, he says it's important to understand the actual math behind it because the media does not get it right. We are in the seventh most affordable housing market on record. The most recent existing home sales report showed the median home price rose 16%; It also showed that hourly earnings rose by 5%. The median home price is not appreciation, that is the mix of homes. Since there is not as much inventory on the lower end, less people are buying on the lower end. For homes above 1 million dollars, sales increased by 80%. The increase above that level moved the median home price up. With incomes going up over 6% and interest rates staying relatively the same, sale prices could go up 10, 15, 20, 25%. Barry emphasizes fulfillment in the journey of seeking one’s goals. The monetary benefit will come but the factor of truly being able to help others is the source of actual fulfillment. “The feeling that we get from helping is better than the check.” 3 Key Points: Barry states that establishing trust is the foundation for being  successful in anything. Focusing on letting go of our fears, let go of our insecurities, getting out of our own heads, and truly seeking the customers’ best interest in advising them is the key to success in real estate.  To understand the affordability and sustainability of the current housing market, we have to look beyond the repeated misconceptions of the media and into the real data and math.   Resources Mentioned: Lab Coat Agents  | Website | Facebook | Facebook Group | Twitter | Instagram | Jeff Pfitzer   | Instagram | LinkedIn | Twitter Barry Habib | LinkedIn | Instagram | Facebook | Website RedX (sponsor) LinkU (sponsor)