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The new year is right around the corner, and a pressing question looms over the horizon for our market—will 2019 be a boom or bust? The market is buzzing with dialogue concerning this question. While we’ve seen continued growth for agents across the board and a healthy market driving these good numbers over the last few years, it’s impossible to ignore what’s in front of us—is the market going up or down?
The prevailing sentiment among the agents I speak to is that there exists an uptick in inventory paired with an increase in days on market for that inventory, at this time. It’s important to pay attention to the increases in these areas because that signifies a potential softening of the market.
Not only that, but agents are also reporting that the flood of multiple offers they were experiencing not that long ago has dried up somewhat.
I should note that this isn’t to conclusively say that the market is headed in a downward direction—but the signs are present. Keep in mind that all the chatter we’re hearing around the issue doesn’t necessarily equate to a market slowdown.
Slowdown or no slowdown, a key question for you to consider is: Will you be prepared if the market does turn down?
Though market forces are out of your hands, how you respond to them makes all the difference to your success. Being diligent and adjusting when a market shift is afoot can minimize, or completely preempt, the ill effects that shift has on your business—and here are five ways in which you can accomplish this:
1. Increase lead generation without spending more money. In the event of a market shift, the idea isn’t to necessarily discontinue buying leads altogether. Instead, decrease lead flow in high-cost areas so that, in turn, you’ll have those extra dollars to increase lead flow in no- or low-cost areas and possibly grow.
2. Start communicating with your database. It’s not just about communicating with your clients—it’s about doing so with intention. Build foundational rapport with clients now so that if a market shift hits, you’ll be the trusted source they call on.
3. Surround yourself with agents focused on growing their business. Stay away from the worrywarts or those that get “paralysis through analysis.” Surround yourself with those that are motivated and persist through changing market trends.
4. Cut expenses where you’re not tracking a good R.O.I. Take a closer look at your lead sources—dispense with those that are not producing a solid R.O.I. Don’t ignore this now and risk carrying negative returns into a shifting market.
5. Engage in more coaching. Always be involved in the conversation. Keep up on training, coaching, educational outlets, etc. Your growth depends on it.
For questions related to this list or advice on other real estate-related questions, I’d love to sit and talk with you. Give me a call or email me today!
