What the Summer Real Estate Market Trends Mean for You
We’re living in a world that’s rapidly changing – and nowhere is the speed of this change more apparent than in the real estate industry. Change can be scary but if you anticipate and plan for it, you’ll be prepared, get ahead of the game and stay on track for success.
In my recent Bold Predictions: Mid-Year Update, I analyzed what lies ahead, demonstrated how to effectively and easily deal with upcoming changes and explained how to capitalize on future opportunities. Using the most up-to-date research available, I also distilled someeconomic data, assessed movements within the major real estate companies and outlined how to navigate industry changes and win while Working by Referral and Living the Good Life!
Here are some of the key highlights and major takeaways for your business:
State of the Economy
There are four pillars of how the economy affects real estate – jobs, interest rates, population and consumer confidence. Right now, we’re doing well on all four fronts. The labor market is resilient, interest rates are low, the population is steadily growing and consumer confidence is improving. On the flip side, however, construction isn’t keeping pace, which means that the housing shortage will continue. For real estate professionals, the competition to get a listing will increase – making a refined skill set more important than ever.
State of the Industry
The real estate sector is currently undergoing a time of unprecedented change. The market is seeking out and investing in technology “disruptors” in real estate. Over a very short period of time, there have been corporate leadership changes across the board, iBuyer programs have increased (although still on a relatively small scale) and the amount of venture capital available has grown vastly, reflected in large investments in real estate technology. Going forward, these changes will continue to be rapid and intense, causing high levels of anxiety within the industry.
State of the Agent
The increase in REALTOR® membership and low inventory continues to drive commission rates downwards. Meanwhile, the entry and growth of low-cost brokerage models is driving gross margins to new lows in many metro areas. This will be the biggest tactical change to occur in real estate in the next 3 to 5 years. Currently, there are approximately 80,000 brokerages, but that may decrease to only 10,000 – 15,000 with a projected mass consolidation and reconfiguration of the brokerage model. The increased number and size of teams adds to this pressure. When it comes to agents’ earnings, many are making close to minimum wage. Buffini & Company coached agents, on the other hand, make an average of $358,486 per year!
With all of these changes happening in the industry, it will be the highly skilled, relationship-focused professionals who will make a fortune in the future. That’s where we can help!
As the largest real estate agent coaching and training company in North America, Buffini & Company has trained 3 million professionals in 37 countries, helping them prepare for all sorts of market conditions and eventualities. We have the resources and experience to lead you through change and help you prosper. Change isn’t scary if you have a plan and know where you’re going. Our new real estate training program, The Pathway to Mastery – Essentials is designed to help you become extraordinary and stand out from the crowd in this rapidly changing environment. If you work on yourself, focus on relationships and master the fundamentals you’ll be ready for anything the marketplace throws at you. So bet on yourself, invest in your future and get after it today!