What to Do in the Current Real Estate Market
The real estate market is experiencing some big changes. According to a recent article by CNBC, the number of mortgage applications fell to a 22 year low last week. They also pointed out that homebuyer demand is down by about 19% compared to the same week one year ago. On the new build side of things, the National Association of Home Builders reported that confidence within the housing market has sagged due to the impact of high inflation and rising interest rates that have resulted in “dramatically slowing sales and buyer traffic.”
Interest rates are climbing in an effort to combat inflation, borrowing conditions are much tighter, and, as a result, buyer purchasing power and demand are sharply diminishing.
I Don’t Mean to Be Doom and Gloom
I’m not trying to kill the mood, I just want to lay out the facts of the real estate market situation, so agents and ISAs like you can make the proper choices and adjustments now. Because the truth of the matter is that a slowing market does not have to kill your business. It’s true that a slower or tougher real estate market may cause less committed or able agents to exit the industry. But all that means is more business to go around for the agents who are committed to the long haul and to putting in the work.
Thousands of agents entered the real estate industry during the pandemic, largely due to surging home prices and a massive amount of demand. But many of them may not have what it takes to weather more difficult times.
The question you need to ask yourself is, which kind of real estate agent are you? Do you want to put in the work and build a successful company and career in any real estate market? Or are you a fair weather agent that wants to get out when the going gets tough?
If You’re in It, Then Here’s What You Can Do
If you’re committed to being a successful agent and navigating the tougher waters ahead, then here are some tips:
Don’t stop your marketing – When the real estate market slows, your marketing actually becomes even more important. But you have to be smart about it. Look closely at your metrics to see what works and what doesn’t work and only put your money into what is producing results. Remember that effective marketing is an investment, no an expense. But if you can’t see exactly what money is brought in by the money you put out, then it’s not a great investment. So pay attention to the numbers, and invest in what is working to bring in new business.
Focus on your sphere – In a real estate market downturn, one of the best things you can do is focus on your sphere to develop a stronger referral base. People in your sphere are those who already know and trust you. You don’t have to win them over; you just have to be available and there for them at the right time. Reach out to them, ask them how they are doing, see what real estate needs they have. Stay connected and let them know you are there for them.
Organize your CRM – Now is the time to make sure your CRM is correctly organized and up to date. Doing so will help you keep track of prospects, leads, and clients and build out a pipeline of people who will need your services 3, 6, or even 12 months out from now. Your CRM will help you connect with your sphere and reach out to them regularly.
Real estate training is key to your success – One of the biggest mistakes agents make is quitting their real estate training when the market shifts. Just like with marketing, a slower market is exactly when you need to invest more in training. A real estate market downturn means there is less business to go around, so you need the skills and determination to go out there and get it. For that, you need real estate training to consistently refine and improve your ability.
If you’re serious about converting more real estate leads and weathering any storm that may be coming then check out our Conversion University real estate training program. It teaches you both the conversational framework you need, and you have a coach to practice all of the concepts until you master them. We have options for both teams and individual agents and ISAs!