Beyond The Summit

Hidden Gems and New Connections

Last month, we made our way to Texas for a packed trip full of property tours, broker meetings, and catching up with some of our trusted partners. While we had a productive visit, one of the most memorable moments was meeting Gatlin—a Harris Hawk with piercing amber eyes and razor-sharp claws.

We stayed in a historic AirBnB that’s over 100 years old, a house with its own unique stories. It’s been featured on shows like Cold Case Files and even made an appearance during Super Bowl interviews. Hidden throughout were surprises you wouldn’t expect—like an escape-room mystery woven into the house and a secret speakeasy tucked away in the basement. And then, of course, there was Gatlin.

The owners of the house, who are also falconers, introduced us to this incredible bird. With a claw-proof glove and a little bit of chicken, we each had a chance to get up close with Gatlin—a definite highlight of the trip.

Our time in Texas reminded us that the connections we build are what make our work so rewarding. It’s these kinds of experiences that keep us energized and focused as we explore new opportunities.

View From The Summit

Happy New Year!

As we step into 2025, We hope the holiday season brought you moments of rest, joy, and connection with the people who matter most. The start of a new year always feels like a clean slate—a chance to reflect on what we’ve learned and set our sights on the opportunities ahead.

This year, conversations about inflation, interest rates, and economic shifts will undoubtedly shape the landscape, but we’re stepping into 2025 with confidence and a clear strategy. Real estate continues to show its resilience, and we’re seeing signs of momentum building in key areas. With careful planning, deep market insights, and a focus on delivering value, we believe this year holds incredible potential for growth and opportunity.

Thank you for being part of this journey—together, we’re ready to make the most of what’s ahead!

National Market News

Inflation and Interest Rates: What You Need to Know for 2025

As we look ahead to 2025, inflation and interest rates remain at the forefront of economic discussions, shaping policy decisions and everyday life. While inflation has eased in some areas, core inflation—measured at 2.8% in November—continues to exceed the Federal Reserve’s 2% target. This lingering pressure is most apparent in housing and transportation.

Yet, the economy remains surprisingly resilient. Consumer spending rose 0.4% in November, driven by demand for vehicles, recreational goods, and financial services. Adjusted for inflation, spending increased at an annualized rate of 3.1% in the fourth quarter—a signal that many Americans, particularly middle- and higher-income households, are navigating inflationary pressures with a degree of confidence.

But for others, the story is different. Lower-income households are feeling the squeeze of elevated costs, underscoring the uneven impact of inflation across the economy. The Federal Reserve, recognizing these challenges, made its third consecutive cut of 2024 by 0.25%. However, further rate cuts in 2025 are expected to be minimal.

One of the clearest examples of inflation’s impact is in housing. Rising mortgage rates have pushed homeownership further out of reach for many, with the cost to own now averaging $1,091 more per month than renting—a gap far above historical norms.

To bring ownership costs back in line with renting, mortgage rates would need to drop to about 3.75%, a scenario that remains unlikely in the near term. While the Federal Reserve may make additional rate adjustments in 2025, many economists caution that significant reductions in home loan borrowing costs are unlikely. Mortgage rates are influenced more by 10-year Treasury yields than by the fed funds rate, keeping affordability challenges firmly in place for prospective buyers.

This environment underscores the enduring role of real estate as a hedge against inflation. Unlike other assets, real estate offers tangible value and tends to retain or even grow in worth during periods of economic uncertainty. The stability it provides can act as a buffer against rising costs, particularly as demand for rental properties remains strong.

As we move into 2025, the fundamentals of the housing market reflect this resilience. With steady rental demand and long-term value creation, real estate continues to serve as a cornerstone of economic stability. By staying attuned to market trends and understanding the role of housing in today’s landscape, we can better navigate the challenges and opportunities the new year may bring.

Local Market News

Tyler, TX: A Hidden Gem Redefining Growth

With a population of 500,000 people within a 50-mile radius and its strategic location as the gateway to the Texas Triangle, Tyler is a city poised for sustained growth. Known for its balance of small-town charm and big-city potential, Tyler is making strategic investments in its future, from infrastructure improvements to economic revitalization.

Anchored by industries like oil and gas, healthcare, higher education, and manufacturing, Tyler’s economic expansion is further bolstered by infrastructure projects like the Hwy 31 expansion and new corporate investments from companies such as YellaWood and Amazon. Downtown revitalization efforts, led by organizations like NORF, are transforming historic buildings into thriving mixed-use spaces, blending economic opportunity with the preservation of the city’s character. These developments, alongside Tyler’s focus on quality of life, underscore its emergence as a key player in East Texas.

Last month, our team visited Tyler to gain firsthand insight into this dynamic market. For us, visiting potential investment markets is about more than just numbers on a spreadsheet—it’s about truly understanding the story behind the statistics. We explored the city, met with local leaders at the Chamber of Commerce, and observed the projects that are shaping Tyler’s future.

Visiting markets allows us to evaluate a city’s infrastructure, job growth, and economic drivers up close. We see the neighborhoods where families live, the businesses that power the economy, and the vision local leaders have for the community. This boots-on-the-ground perspective ensures that every investment decision we make is informed by both data and firsthand experience.

The Path Forward

Poised for Progress: How 2025 Will Shape Real Estate

As we step into 2025, we’re energized by the opportunities that lie ahead. The past year has tested the market, but it’s also sharpened our focus and strengthened our resolve. Through careful analysis and preparation, we’ve positioned ourselves to take advantage of the momentum we see building in the months to come.

The signs are promising—markets stabilizing, new opportunities emerging, and a renewed sense of optimism in the real estate landscape. We’re ready to put the groundwork we’ve laid into action, identifying and pursuing investments that align with our disciplined strategies.

To our partners and investors, your trust and collaboration have been invaluable. It’s with your support that we can confidently move forward, navigating the evolving landscape and capitalizing on what 2025 has to offer.

Let’s make this year one of growth, success, and reaching new summits together.

Thank you for your continued trust and partnership.

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