Real Estate Industry News – July 2022

Does builder blues equal buyer happiness?

According to the National Home Builders Association; builder’s report a decline in sales, ongoing pressure to price drops and the RETURN of buyer incentives, OH MY! Say what…. Let’s proceed.

• Does this speak to inflation?  A little, yes. Inflation climbed to 8.6% last month—up 0.3% from April—marking the largest 12-month increase since December 1981.
• Does this speak to climbing interest rates? A little, yes. 6.479% for a 30-year fix.
• Does this speak to rising cost of oil? A little, yes. Who needs supplies?!
• Does this equal a perfect storm….? not quite yet.

We are still falling short of supply meeting demand. Some of the issues with lack of demand is inflation, and cost of supplies, actually getting the supplies, and lack of workforce. In my humble opinion, we need to give incentives to get back to work!

And with all this in play, the housing market is still looking strong for 2022. Some minor corrections needed; I think so. However, think of it like this, most of us have been seeing 20-30% rate of appreciation on our homes; that has and never will be a stable market of sustained growth. So, even if the market goes south, and eventually, it probably will, most of us will be fine. The only folks that will experience a huge, house depreciation loss, are the folks that have purchased in the last 12 months. AND I could still argue it was a smart and an intention move to purchase a home and control your monthly debt to income AND as rates continue to rise.

The most important thing to do in this housing market is to stay relevant!

And while, no one can predict the housing market, but YOU can predict your success by monitoring your systems.

Here are a few systems you NEED to thrive in a shifting market. (Also, these are best practices we ALL should be doing all the time, not just when you see the water stop flowing).

Systems, systems, systems and BUDGET: “Create Your Own Inventory

1. Lead generation systems:
   1. Where do consumers find you?
   1. Where do you find consumers to follow up with?
   1. Get a CRM! Just do it!
2. Follow up systems:
   1. How do you water those leads from above?
   1. How are you setting up your tasks and COMMUNICATING with your clients?
   1. Is it automated for best use and consistency?
3. Cody Gibson, shared this one and it blew my mind:  Creative deal creation system:
   1. i.e. buyer said the roof looks bad.
   1. Seller writes offer to buyer with roof repairs
   1. Get creative! Sellers can write offers too!
4. Money system:
   1. What are you paying for?
   1. Where are you keeping track of this? A CRM would help.
   1. Where are your revenue streams coming from?
   1. Do your own DARK TECH AUDIT and Identify your MONEY and use it wisely!
5. Database matters:
   1. Clean in up
   1. Use an “AI” to predict your client’s behavior
   1. Top 10% of agents touch their database 70-80x per year
6. Farming matters:
   1. In addition to geographic farming, and please do it wisely, as my sales team about turnover rates AND…. Cody Gibson’s biggest tip…..
   1. Whose database can you buy?
   1. Can you sell yours?

My goal was to get you thinking about what you can stop, what you need to start and what can you be wildly consistent at. Your next step, should be calling one of us.

As always, wishing you a successful day.