In most areas of the county, the local real estate market remains strong, however, I’m increasingly seeing signs of a broad cooling of the market. I’ll be watching the March statistics carefully though in some cities around the country we’re already seeing decreases in showing numbers. And several indicators point to a recessionary environment such as the inverted yield curve, and the quick rise in interest rates. Bottom line, the government will need to slow the housing market to halt inflation and is actively working to do so. Note Lawrence Yun, National Association of Realtor’s Cheif Economist recent blog post. Second to last sentence.
What does that mean for you?
- Most businesses I analyze struggle more with internal dynamics not driven by the market at all. From operations to hiring to effectively working with clients and pricing correctly, keep your focus on improving your internal efficiencies and effectiveness and business development outreach. This will be more critical for you to take advantage of any market opportunities going forward. In other words, pay attention to the market you’re operating in, but mostly pay attention to how you’re operating.
- Inflation remains a real challenge for all of us. As you’ve probably seen, it’s difficult to raise the prices of your products and services as fast as prices are rising for you. This looks to be a challenge for all of 2022 so find ways to creatively pull in more revenue per unit and perform other paid services to offset this.
- As the size of the market opportunity shrinks, businesses that hold or expand their percentage of the market during that period do very well in the following period because their overall market share increases. That means it can feel like you are losing when you’re actually winning as the market contracts but you hold your ground and you’ll notice later you were actually winning. Stay grounded in the stats to help balance your perspective of winning vs losing.
Recessionary periods hold massive opportunities for people who keep their psychology in check, manage their expenses very tightly, and creatively find ways to generate revenue and build a bigger and more diverse client base. That means you may be entering the most opportunistic time in your career. The only question is will you execute and take advantage of it?