The Real Estate Market is Changing—Here’s How to Leverage It to Your Advantage

They say that the only constant thing in the world is change. The real estate market is no exception. Find out how you can leverage the ever-changing market to your advantage.?

The United States real estate market had strong fundamentals prior to the pandemic.?

However, the emergence of the COVID-19 pandemic challenged the industry’s resilience when the supply chain was disrupted in the past year. Everything became a big question mark, even for the real estate sector.

Fortunately, the US real estate industry remained resolute even amid the global health crisis.

But now that the COVID-induced recession is over, it is sending a ripple effect even to the market, causing unprecedented changes to supply levels and even demand.?

Because of this, it is now more important than ever before for a real estate business to reevaluate its operations to leverage the changing market to its advantage. And in this article, I will share with you four tips on how you can do just that.

The Four Tips

Tip #1 - Motivate Buyers

The biggest issue that the US real estate industry is facing due to COVID-19 is not the lack of buyers. As I said earlier, we were literally left unscathed while other sectors drew blood because of the global pandemic.

Our problem now is a lack of motivated buyers.?

Just recently, I was on the phone with a buddy of mine who is a team leader down in San Diego. He told me that they don’t have enough clients who are motivated enough to buy properties. And, frankly, that’s understandable in today’s business climate.

But it’s not all bad news.?

The good news is that these buyers are still qualified to buy. And yes, they would still like to buy.

All you have to do is bring back their motivation.?

And you can do that by giving them some wins. There’s no way around it.?

Inventory levels are changing. More homes are slowly coming onto the market for sale. You don’t have to compete against 50 other offers on a house and interest rates are slowly creeping up. So, the time is now.

To keep your real estate business afloat, better ask yourself this question:

What am I doing to motivate buyers to get into the car and look at houses??

Tip #2 - Understand your Inventory Levels

Aside from making sure that your buyers stay motivated, you should also be always on top of your inventory levels.?

The tricky part here is that there are different definitions of inventory levels.

For one, inventory levels could be the measure of the number of homes currently for sale divided by the number of homes sold in the last 30 days. But it could also be simply the number of active listings you still have by the end of a current month.

Regardless of what definition you ascribe to, your real estate inventory levels must be clear to you so you can gauge your team’s performance at regular intervals.

Tip #3 - Keep Track of Your Business Each Week

Once you understand your inventory levels, you need to track them. Keep tabs on your inventory levels and get your previous numbers if you have to.

You see, tracking your business every week gives you valuable insights on important market trends. Once you start seeing the trends that are either moving up or down, you can make adjustments in the business even before those movements happen.?

Keeping track of your real estate business will give you enough time to prepare for incoming storms that could happen in a month, three months, and beyond.?

Tip #4 - Adjust your Marketing to Match Current Market Conditions

Knowing your inventory levels and the current market trends is just half the battle when it comes to taking advantage of market changes in the real estate industry.

What you need to do next is adjust your marketing to match these changes.

You need to have a game plan for various market trends that is ready to be implemented at a moment’s notice. You shouldn’t wait till you have six months of inventory left until you start executing. That’s the whole purpose of doing your due diligence.

And to give you a headstart, here are the two key market trends you need to be aware of:

1. Seller’s market: A seller’s market is a condition where there are a limited number of goods available for sale in the market. In real estate parlance, this means that there’s a shortage of houses for sale while there are a lot of people looking to buy homes. In this case, real estate owners have the power to dictate price.

1. Buyer’s market: The exact opposite of a seller’s market, the buyer’s market is a condition where there are a lot of available homes for sale while buyers are limited. This makes it difficult for real estate owners to sell homes. On the other hand, buyers have the power to choose the property that would best fit their needs in terms of location, size, features, and price.

Let’s Build Your Game Plan

Now that you know the four tips to leverage the real estate market changes to your advantage, it’s time to execute. Gather your people, teach them these tips, and start planning for the various market trends.?

Now I know this might sound like a daunting task. So if you ever need help in understanding your inventory levels and building a game plan for the various market trends, just schedule a call with me, and we’ll sort it out.