What to Do in the Current Real Estate Market

real estate market transaction

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!


The Top Real Estate Metrics to Look at in a Shifting Market

real estate metrics

The Top Real Estate Metrics to Look at in a Shifting Market

We’re in the midst of a real estate shift. The market is quickly changing, and agents and teams have to adapt in order to keep up. At Smart Inside Sales, we’ve been receiving a lot of questions from our clients about which real estate KPIs they should pay the most attention to now that the market is tightening.

I wanted to put together a quick blog post that covers some of the key real estate metrics that you need to track and review regularly. Doing so will help you successfully weather the real estate shift that we are in the middle of.

Real Estate KPIs: Lagging Indicators

Most real estate teams focus a lot of their attention on lagging indicators. These are real estate metrics like active, closed, and pending listings. Team leaders will use these numbers to forecast where their business will be heading in the future. The problem with that is it’s kind of like standing at the back of a ship looking at where you came from in an attempt to figure out where you’re headed.

Don’t get me wrong, looking at active, closed, and pending is a great way to review past performance and assess how successful your team has been. Coupled with a clear idea of the types of actions your agents have been taking, these real estate metrics can help you review whether your current strategy has been working well or not.

The problem is, they don’t give you a clear view of where your business is headed. For that, you need to look at key leading indicators.

Real Estate KPIs: Leading Indicators

If lagging indicator real estate metrics are you standing at the back of the ship, then leading indicators are you standing in the crow’s nest. They help you see right where the ship, or your business, is heading and why. When thinking about real estate KPIs for your business, these are some of the most important ones for looking forward:

  • Number of leads generated
  • Number of contacts made
  • Number of appointments set
  • Number of appointments met
  • Number of contracts signed

These metrics allow you to see how much business is currently in the door, how much is right outside the door, and what business is on the horizon. They also give you a good idea of how much successful effort your agents and ISAs are putting in to create more business for your company. By understanding these key real estate metrics, you are in a better position to make fast decisions about where to focus your resources in the tightening market.

The Real Estate Shift Doesn’t Have to Be Scary

A tightening real estate market can be stressful, but it’s not the end of the world. You just have to take the right steps for your team now. A big part of that is understanding your agents’ current performance and what business is coming down the pipe. At Smart Inside Sales, we recommend that team leaders look at the lagging and leading indicators we mentioned, as well as other important metrics like:

  • Lead spend
  • Conversion rate
  • ROI

All of these real estate KPIs should be reviewed weekly, monthly, and quarterly. That way there won’t be any surprises, and you can have the information you need to make any tough decisions that come up. Knowledge is power. You just have to start collecting it.

If you are a team leader and worried about the coming real estate shift, then check out our Leadership & Management Coaching program. We help you focus on ramping up the accountability, organization, and communication of all aspects of your business, as well as crafting and executing an effective plan for dominating your market.


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