Where’s the Market Headed?… And What To Do Now!
Greg Harrelson & Abe Safa discuss the current market, where it is projected to go, and give you some tips on what you can do to navigate through the shift and scale your business effectively.
The market has changed a lot recently. It’s an undeniable fact, and the projections seem to give many agents and buyers some pause.
As a real estate agent, you might be wary or downright scared about the current market conditions. However, there are things you can do right now to prepare for the future, scale your business, and come out unscathed.
Abe and Greg bring together their years of experience to coach and offer proven strategies to help agents survive and thrive in this shifting market.
What the Statistics Are Showing
The recent data published by Fannie Mae indicate a drop in home sales for the next two years. For 2022, the projections show only 5.78 million homes sold, including new constructions. That’s a 16% drop from 2021, which saw 6.89 million home sales.
The trend continues until 2023, with only 5.18 million projected home sales. From 2021 to 2023, there will be a projected 25% drop in sales.
Even now, the effects of the dipping market are being felt all over the country. Sales are slowing down, pendings are down, and website traffic is down. However, prices are decreasing while interest rates are going up. It’s a muddy situation with no clear future.
Make a strategy to take action.
You've got to be flexible.
The Pizza Metaphor
So where’s the market headed? Think of it like a pizza. 2021’s pizza is a large 16-inch pizza pie. But projects are showing that it’s going to be 25% smaller. So as the size of the pizza shifts, not everyone will be able to eat.
When the time comes, those who won’t get their share will go out of business. Here’s the thing: the pizza hasn’t shrunk that much yet. So you’ll need to start fighting before those projections become a reality.
Given how confusing the situation is now, you’d do well to make a decision now and work from there. Answer this question: is this dip exciting or scaring you? Your attitude will influence your response to the shifting market. So Greg and Abe advise you to see it as an opportunity to get moving.
Those who remain complacent will ultimately get a smaller piece of the pie or none at all. But those who will make the necessary adjustments will get their piece. If they do it right, they won’t even feel the effects of the smaller pizza.
Concrete Steps You Can Take
Obstacles are uncontrollable, but solutions are controllable. Focus on what you can control. In this new market, you’ll want to restrategize and change your entire business model.
Create a new one based on the latest market data and make adjustments every 30 days based on new developments.
Knowing the market data is of paramount importance at this stage. But you’ll also need the skills to interpret it. Your clients will be wary and worried, and it will be up to you to address their issues with hard data.
Finally, keep a committed mindset. Grow your current skills and learn new ones, execute lead generation campaigns, and make as many follow-ups as possible. That’s how you remain competitive and get the market share you’re aiming for.
There’s a famous quote that says, “Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.” We’re currently at the tail end of the good times, which is creating complacent real estate agents. But if you act now, then be able to weather this major change and come out even better than before.
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