I recently attended the International eXp conference, which provided fascinating glimpses into how technology is reshaping real estate. Currently, AI accounts for about 10% of the world, but within a decade, that figure is projected to reach 90%. This shift brings both opportunities and challenges that we need to navigate carefully.
One telling example comes from Ryan Serhant's recent $50M deal, where both buyer and seller consulted AI about pricing - and both were told exactly what they wanted to hear – which was the opposite for each person. While the deal came together, it highlighted AI's limitations in understanding key factors such as market conditions and buyer dynamics. It also showed how careful you need to be as it will tell you exactly what you want to hear versus the truth.
Key Takeaway: Human discernment in real estate (and everything else!) remains essential. AI misses nuanced market realities and can be factually incorrect.
The broader technological changes are striking, as highlighted during the conference.
- Within five years, self-driving vehicles may become standard. Beyond technology innovations, car insurance companies are also advancing this shift. Seeing a big move by people of all ages across the country to scoop up non-tech cars. I love driving, so not sure how I feel about this!
- Personal robots are becoming more accessible, capable of tasks from eldercare to household chores. Tesla just shut down two of their car lines to move to robot production.
- The entertainment industry will continue to restructure as people can now easily create their own music that sounds like any artist w/ AI. Films are starting to use AI creation for human roles. Bruce Willis was one of the first to sell his likeness to an AI software company.
- The social media landscape is transforming too - within three years, experts predict feeds will be 90% AI-generated, tailored to individual preferences. Social media has given way to “Interest Media.” AI will be a HUGE driver on this. Most of what people will see shortly will be AI-created. Good to know, so you may zig or zag on what you decide to consume. You can be assured our content will ALWAYS be real!
What does this mean for you and me?
While we will continue to embrace technological advances as an agency, we're mindful that many aspects of real estate simply can't be quantified by AI. Our approach is to stay engaged with technology (Google doesn't reward businesses that limit their data from it!) while ensuring it enhances rather than replaces the human elements of our service.
We're particularly careful with AI tools. They need proper parameters and oversight, especially as they're designed to be accommodating (telling you what it thinks you want to hear) rather than 100% accurate.
Be careful when creating your AI Agent. Put parameters and restrictions in place, and make sure you know what you're doing - as they can take on a life of their own! Once the Agent shares something you may not want them to, that information is out there on a permanent basis. This is especially the case for teens who often forget that this is not a real human and share highly personal information with their AI Agent, seeking advice.
Finally, be aware that anything you’re emailing or writing in documents could be accessed by AI. If you don't have parameters set up, AI can see and will use them in any application it (not you) deems useful. AI Agents all talk to each other.
Broader Real Estate Changes and a Spring Market Update
As we look ahead, we are adapting to a rapidly evolving real estate landscape. From a big-picture perspective, we're seeing trends toward mega teams and high-power micro teams, as individual agents find it increasingly challenging to meet modern client expectations. With what is rapidly on the horizon, smaller non-franchise brokerages may struggle to have the capacity to invest in necessary technology, leading to significant industry consolidation. The investment these large firms are making in tech and portal projection is massive. Very tough for smaller companies to be as competitive from an exposure standpoint.
Big investment buyers are selling short-term rental properties (AirBnbs). Local municipalities are changing their parameters on this so much and often that it is more challenging to ensure a profit. Instead, bigger companies are investing in highly surveilled "crash pads" (like dormitories) in many bigger cities, renting by the room with communal kitchens/bathrooms. An example of this is the housing some larger Door County businesses provide for their seasonal help.
Despite international headlines and market speculation, our local spring market remains remarkably steady. The main factor affecting inventory isn't global news; it's simply our recent weather, which has created a backlog of listings waiting to come to market!
Interest rates are holding around the low to mid-6s, the lowest we've seen in years, and we have a full roster of listings preparing to launch.
However, we're noticing an interesting dynamic: Sellers often remain anchored in 2022 pricing expectations, while buyers think we are in 2007 conditions. Neither is the case! We are in the Spring 2026 market, which is very unique. This makes realistic pricing more crucial than ever!
We strongly advise against aspirational pricing and recommend listening carefully to agent guidance in this softening market.
For those considering selling, take strategic action before listing. This means decluttering, depersonalizing, and deep cleaning before an agent visits. We're happy to provide an initial consultation to help guide these preparations. We are in that mode full swing right now.
Growing Our Team and Business Circle
We're excited to announce two full-time job openings on our team: A Buyer’s Agent and a Seller's Agent. If you know someone who might be a good fit, or if you’d like to see a job description, just reply to this email. We are SUPER excited to find the right people to help us help you! We are looking for a person who has been an Agent for at least two years, loves to serve, is a go-getter, loves to learn/grow, is a team player but also self motivated and is a good solid human being.
Please keep us in mind if you know of anyone. THANK YOU!
Speaking of growing…We know you know how much we enjoy helping our clients with their real estate needs and wants. Would you be so kind as to keep us at the forefront of your mind when you have people you feel we can help, and to refer them to us? We have worked really hard to perfect our offering and are ready to expand our circle of successes. Thank you VERY MUCH for helping us on this, too!
I love that we can help each other :)
Q1 Market Update
As you can imagine, our first quarter was shaped in a big way by the weather. We have some major listings in the queue that have been delayed, and instead of the usual spring boom, new listings are still just trickling onto the market.
Overall, the market was down 7% in the first quarter, but the bigger story remains affordability. That pressure is still very real. Average sale price rose from $390,000 to $420,000, a considerable jump that reflects what’s happening above and below the $500,000 mark. Under $500,000, buyers are much more constrained – not just by home prices, but by the pricing of everything else in life, too.
The overall housing market remains very tight and competitive. We are also seeing just how expensive it has become to build. In the $1M+ price range, sales have increased by 700%. Last year, there was only one sale in that category in the first quarter, and this year, there were 7, which really speaks to the high cost of construction.
Broadly speaking, this is happening almost everywhere except Florida, Texas, and California, where inventory is more excessive.
One other important note: With weather extremes becoming more real, it’s worth talking to your insurance provider about flood insurance, whether or not you are in a flood zone. If you are not in a flood plain, it is often not very expensive. In this last round of weather if you did not have flood insurance you likely were not covered by water coming in from the outside. DEFINITELY worth calling your Insurance Agent on this.
As always, we’re here to help you make sense of the market and navigate it thoughtfully.
