Category: Best Practices

The Shifting Landscape

Many of you have experienced a unique year. Your gross income has been a challenge, unit sales have seen a notable decline. This trend is starting to shift.

Back to Basics: A Timeless Approach

To navigate this changing market, we must return to fundamental principles. A crucial element is diversifying lead sources. Aim for at least four to six reliable channels to ensure a steady stream of potential clients. Additionally, our 90-day to recruiting stability plan and our “Real Estate Recruiting Playbook” offer structured approaches to maintain consistency and achieve success.

The Power of Responsiveness

A recent analysis of our top producers revealed a striking difference in responsiveness. These top performers were three times more likely to answer calls and return messages promptly compared to those struggling. This highlights the importance of timely communication in building trust and securing deals.

Good or great the choice for 2025 is yours and mine to make.

My acquaintance Lawrence Yun posted some stats about the next two years a while ago. I’ve updated those stats below. An interesting way to think about the next 24 months:

Think about it:

• New Beginnings:
  • Births: Approximately 3.6 million per year
  • Marriages: Around 3 million per year
• Life’s Transitions:
  • Divorces: About 1.5 million per year
  • Aging Population: 19,000 people turn 65 every day
  • Deaths: Approximately 2.8 million per year
• Economic Dynamics:
  • Job Growth: Potential for 4 million new jobs
  • Job Mobility: Over 25 million job switches

These demographic and economic trends will likely drive the following real estate shifts:

• Increased demand for family homes from new parents and growing families.
• Potential demand for smaller homes or rental properties as older adults downsize.
• Increased demand for senior living facilities and healthcare services.
• Job mobility and economic shifts will continue to influence housing demand.

What are your thoughts on how these trends will impact the real estate market in your specific region?

This month’s market update from KCM gives us the:

5 questions consumers are curious about:

• When Will Mortgage Rates Come Down?
• What Will It Take for Prices To Come Down?
• Will I Be Able To Find a Home If I Move?
• Will The Housing Market Pick Up Next Year?
• Is the Market Going To Crash?

No one expects you to have a crystal ball, yet your prospects expect a fact-based point of view.  The narrative below is intended for that purpose. (DM me for the slides)

The highlights?

• The census, Fannie Mae, MBA, NAHB, NAR project a 13% increase in home sales in 2025.
• On a typical day in October, 29.2% more homes were actively for sale than at the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.
• The Altos Reports –  linked below – show how this trend is driving a more “balanced market” with a slight seller advantage in many markets.
  • National
  • California
  • Texas
  • Florida
  • New York
• Mortgage rates? A study conducted by the Bright MLS indicated that 70% of buyers in the last year abandoned their search because of affordability. The folks over at Altos seem to suggest an infliction point when rates get to 6% and below.
  • The consensus of Fannie Mae, MBA, NAR, and Wells Fargo below 6 and near 5.5%
  • Remember – Bond Yields: Mortgage rates often track the yields on 10-year Treasury bonds.
  • When bond yields rise, mortgage rates tend to follow.
  • I have a white paper on “Mortgage Rates and Bond Yields.” If you are interested, send me a direct message.
• The National Debt? A challenge for lower mortgage rates.
• Consumer debt is at record levels, yet home equity is also at record levels.
• The implication?
  • Historic equity – and a shortage of supply –  indicates a crash is not likely.

So what should we expect in 2025?

1. More homes to sell next year – at least 13% more (consensus)
2. Mortgage rates to decline below an infliction point
3. Price appreciation to slow – a consensus projection of around 2.5%
4. The unknown – institutional investors are holding on to a significant portfolio of residential homes – when will other investments create higher returns and an inventory sell-off?

4 Steps to Crush the Rest of 2024 and Beyond:

The S.N.A.K. Framework

As we sprint toward the end of 2024 and gear up for a new year, it’s the perfect time to reassess our goals and strategies. Think about the S.N.A.K. framework to help you make the most of the remaining months and set yourself up for success in 2025.

Let’s break down each component:

S: Systems for Sustainable Success

• Create Effective Systems: Develop routines and habits that support your goals.
• Prioritize Tasks: Use time management techniques like the Eisenhower Matrix to focus on important tasks.
• Automate & Delegate When Possible: Utilize technology to streamline tasks and free up time.

N: Network Your Way to Success

• Build Relationships: Connect with people in your industry, attend networking events, and engage on social media.
• Leverage Your Network: Seek advice from your connections, referrals, and potential collaborations.
• Give Back: Help others in your network, as this can strengthen your relationships and open doors.

A: Accountability is Key

• Set Clear Goals: Define specific, measurable, achievable, relevant, and time-bound (SMART) goals.
• Track Your Progress:** Monitor your progress using calendars, planners, or project management software.
• Find an Accountability Partner: Share your goals with a friend or colleague who can keep you motivated and on track.

K: Knowledge is Power

• Continuous Learning: Dedicate time to learning new skills or deepening your expertise in your current field.
• Stay Updated: Keep abreast of industry trends and advancements.
• Seek Mentorship: Find experienced individuals who can guide you and offer valuable insights.

By implementing the S.N.A.K. framework, you can significantly boost your productivity, achieve your goals, and set yourself up for long-term success. Remember, consistency is key. Small, consistent steps can lead to significant results.

What are your thoughts on the S.N.A.K. framework? Share your experiences and tips.

Persistence cannot be replaced.

• Sometimes people need to hear it another way.
• Sometimes people need more reasons to move forward.
• Sometimes people just really don’t know how to move forward.
• Sometimes people just need more time to make sense of it all.

Persistence cannot be replaced.

There is absolutely no substitute. Either you will lean in, stay with each opportunity, and figure it out – or you won’t.

Persistence to win the day.

Share it!

A One-Degree Shift: The Power of Small Action

Have you ever considered the impact of a tiny change? A seemingly insignificant adjustment can lead to significant, long-term consequences.

A Flight Path to Incremental Change

I was reminded of this concept during a flight from DFW to LAX. Glancing at the flight information display, I was struck by the precision required to navigate a massive aircraft.

A One-Degree Error: A seemingly minor one-degree deviation in the flight path can result in a substantial miss after a relatively short distance. After just one mile, the plane could be 92 feet off course.

Small Shifts, Big Impact

Perspective. The flight path from Boston to Los Angeles is 2986 miles long. If you were to deviate from this path by 1%, you would end up about 30 miles off course. Closer to John Wayne (SNA) in Orange County than LAX.

This principle isn’t exclusive to aviation. It applies to every aspect of our lives, from personal habits to professional goals. A slight positive shift, like consciously practicing gratitude daily or dedicating a few minutes daily to learning a new skill, can compound over time and lead to significant personal growth.

Conversely, small negative habits, such as mindless scrolling on social media or indulging in unhealthy snacks, can gradually erode our well-being and hinder our progress.

Recalibrating Your Course

If you find yourself off course, don’t despair. Accept, reflect, and redirect. The key is to identify the small shifts contributing to the problem and make conscious efforts to correct them.

Ready to Make a One-Degree Shift?

If you’re interested in discussing how you can make positive changes in your real estate business, I’m here to help. Let’s work together to identify the small steps that can lead to big results.

Remember, every journey begins with a single step.

The “Perfect Day!” In this classic exercise, you write out your idealized, perfect day in great detail, beginning with what time you get up and what you have for breakfast, continuing through what you do for each hour of the day and who you talk to. The more detail you can add to the plan, the better.

• So how do I get started? Try this:

1. 1. Where (location) would you wake up, and who would be with you – if anyone?
   2. What time would you wake up?
   3. How would you wake up?
   4. What’s the first thing you would do?
   5. What would your morning routine look like?
   6. What would you have for breakfast?
   7. When / where, and what time would you go to work?
   8. What contribution to your organization, to your community to others would you make?
   9. When, what and with whom would you eat for lunch?
   10. What time would you finish work?
   11. What would you do in the evening?
   12. What time would you go to sleep?
   13. Would you exercise, have fun, or work reflection into this day?
   14. How would you connect with your friends and family?
   15. What hobbies would you be doing?
   16. How would spiritual fulfillment fit into your day? What would you add?

• What would you add to the list?
• What would you remove from the list?

In this exercise of envisioning a perfect day, I’ve found myself drawn to a productive and fulfilling routine. My ideal day is one that balances professional growth with personal well-being. It’s a day where I can achieve my goals, contribute to my community, and maintain a healthy work-life balance.

While this may be a fictionalized version of my day, it serves as a valuable reminder of what truly matters to me in my professional life. It’s a vision of a career that is both challenging and rewarding, where I can make a meaningful impact and find joy in my work.