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AI-mazing Real Estate: How ChatGPT is Changing the Game for Agents

January 20, 2023

Rise and shine! It's a new day and The Shaker is here to serve you the best mix of residential real estate news. Yummy yummy.

TECH

AI-mazing Real Estate: How ChatGPT is Changing the Game for Agents

What you should know:

Real estate agents in Miami and other parts of the US are exploring the use of AI-powered tool ChatGPT in their line of work, with some calling it a "total game-changer" for the industry.

  • ChatGPT can generate text based on simple prompts, raising questions about how the tool can augment work or potentially replace workers across industries.

  • The tool's developer, OpenAI, has warned users that ChatGPT "may occasionally generate incorrect information."

  • Real estate agents see potential value in ChatGPT as an assistant, helping craft newsletter content or setting up automated responses, but they don't think it will ever replace real estate agents.

MORTGAGE

Good News for Homebuyers: Mortgage Rates See a Dip

  • Mortgage rates fell this week as economic data showed inflation is fading, according to Freddie Mac. The 30-year fixed-rate mortgage averaged 6.15% in the week ending January 19, down from 6.33% the week before, and a year ago, the 30-year fixed rate was 3.56%.

  • Mortgage rates rose throughout most of 2022, spurred by the Federal Reserve’s unprecedented campaign of harsh interest rate hikes to tame soaring inflation. But mortgage rates dropped in November and December, following data that showed inflation may have finally reached its peak.

  • The Consumer Price Index for December showed that overall prices declined last month by 0.1%, signaling to investors that the Federal Reserve’s rate increasing will taper if inflation continues to slow. The average rate for a fixed-rate mortgage dropped following the 10-year Treasury, which fell from 3.75% at the beginning of the month to 3.37% this week.

  • The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less-than-perfect credit will pay more than the average rate.

  • Recent lower mortgage rates have improved home buyers’ sentiment slightly and applications have increased, jumping 28% last week, according to the Mortgage Bankers Association.

PROPERTY MANAGEMENT

How Property Managers Can Help Rental Owners Embrace Change

By CEO and Founder of L.A. Property Management Group and Crown Commercial Property Management.

  • Many long-time rental property owners hold on to the management of their property not because they prefer the control or because they think they can do the work more efficiently than a management company, but simply because they’re used to things being a certain way and are averse to the idea of change.

  • Property management is an ever-changing industry, the direction of which often depends on new systems and technology. In the past decade alone, software programs have reorganized and improved the way you can oversee properties. Complex rent control laws—federal, state and local—that surround ownership and leasing are also in constant flux, and they require careful compliance to avoid potentially devastating lawsuits.

  • Property managers must make sure prospective clients know they’re committed to making change as painless as possible. Focusing heavily on making the transition easy for new clients and adapting service to each client’s unique needs, rather than making the client adapt to you.

  • Owners never owe you their business, and just because you believe a change is right for them doesn’t mean they’re obligated to accept it. It’s more important to earn a client’s trust with your actual work than it is for you to talk them into a vision you have for their property.

RENTALS

Seattle Rent Prices Take a Tumble: Zillow Report

  • According to a Zillow report, Seattle saw the steepest monthly decline in rent among major metros in December, with typical rents in the area falling 1% month over month to $2,166.

  • Las Vegas and Dallas also saw steep declines in rent, with .9% and .8% drops respectively.

  • Asking rents across the US fell .3% from November to December, but the typical rent in the US is $1,981, 7.4% more than this time last year.

  • Factors contributing to the decline in rental demand include higher rents and inflation, as well as an increased number of people living with housemates, roommates or relatives.

  • Rents are still higher than they were a year ago in all top 50 metro areas except Las Vegas, with Seattle's typical rent up $102 from last year.

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