Managing Through Challenging Times in Real Estate
The past two years have been a veritable rollercoaster in our lives and in the real estate industry. From a global pandemic and wide-spread shutdowns to a surge in buyers amid scarce inventory, from rising inflation and nagging supply chain, there seems to be little end in sight to this period of historic uncertainty.
Yet challenging times have made us nimble and innovative, finding new ways to communicate with clients and to navigate and close transactions. What can we expect now, as we enter what is traditionally our busy summer season, and how can real estate professionals successfully manage their business?
According to Fannie Mae’s chief economist, Doug Duncan, decades-high inflation and disruptions in energy and other commodities are putting pressure on the U.S. economy - and, as noted by Lawrence Yun, Chief Economist for the National Association of REALTORS®
(NAR), that pressure has triggered rising interest rates. Some buyers who qualified for a three-percent mortgage rate may not qualify at four percent.
We are currently seeing a gradual slowing after a pandemic-induced market frenzy. But there is reason for cautious optimism. High-end buyers are less affected by economic uncertainties and building permits for new construction of homes in all price ranges are on the rise in many areas. Additionally, Gallup®
polls for five years in a row have seen real estate as a better investment than gold, stocks, or savings, all of which signals continuing consumer interest.
Economists suggest tried-and-true rules for maintaining a successful real estate business in the face of changing times:
- Stay informed - As housing demand, inventory, and prices fluctuate, the best way to serve your clients is be well-informed about the state of your local market.
- Fine-tune your website and social media - Optimizing your website, perhaps adding some customer endorsements, is an excellent way to stand out from competing settlement professionals; and in an increasingly digital world, posting new and engaging content on social media can help keep your phone ringing.
As your title partner, we’re focused on providing you the tools, services and education you need to help you deliver the best experience to your customers. Contact us today for more information.
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.
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