For our recruiting and attracting clients, the future is bright for agent growth.
As my business partner Ben Hess – a sailor, says – “fair winds and following seas:” A well-known phrase in the maritime world that means the wind and sea will likely be going in your direction.
October 2024 Commentary
Jobs and real estate work together… has that changed? My business acquaintance Mike Simonsen from Altos Research coined the term “the Great Stay.” In summary, Mike states:
Conventional wisdom has been that the job market must weaken and unemployment must rise… yet unemployment has stayed low for several years.
Normally, when unemployment is low, many of us have confidence we can find a new or better job. Maybe more likely to change jobs.
What we are seeing post-pandemic is layoff rates are very low, and the rate at which companies are hiring is low. So, no one wants to upset “a good thing.”
Housing? Homeowners have a good thing with low rates and a very good run-up in equity.
The incentive to move to “lower cost” states has equalized with higher rates. So, no one wants to upset “a good thing!”
The great stay for jobs and real estate.
While inventory is more than the prior year (34% more), it is compressing as recently at 40% more than last year.
The story that real estate is local is becoming more pronounced; for example, while Denver has more inventory than at any time in the last decade, Orange County, CA is still much tighter.
The outlook? On a National basis, Ralph McLaughlin, Senior Economist, Realtor.com, said, “We expect the economy to land softly and housing inventory to continue to recover. This should put downward pressure on mortgage rates this fall and winter and set the stage for a much better season for homebuyers in 2025.”
Bankrate did a survey that indicated “More Than Half of Homeowners Would Be Motivated to Buy With Rates Under 6% while 33% Of Sellers Would Be Motivated Below 6%.” Some are projecting that this rate scenario could occur in the first quarter of 2025.
Some additional highlights?
Conditions are better now than in prior quarters.
The third week in a row with more sales – this week, 16% more than a year ago
Very different market-by-market
Mortgage rates are now 6.18%, and a four-firm prediction says 5.68% by Q4 of next year.
National average price appreciation is expected to slow to 2.6%
Wide variation depending on geography and new home builder activity
A 14% increase in home sales (low-range 10% and high-range 21%)
2024 is projected to end at 4.7 million homes sold
2025 is projected at 5.4 million (average of 3 sources with a range from 5.2 to 5.7)
Waiting until next spring or summer would give you more inventory to choose from, but you will be up against greater competition during peak buying season.
“Nothing Good Happens When You Wait,” ~ Mark Johnson.
My takeaway?
No one can give perfect advice… yet you can provide informed advice.
Follow the data.
The trends leave clues.
It’s never been more important to understand the Macro (State and National) and Micro (Regional and Local) markets. My friends at Altos and KCM have some pretty great tools to do both. Hit me up for more insight.
In a world of endless distractions, protecting your most prized resource—”your attention”—must be a priority.
What if?
What if… we didn’t fight distraction? We just made them irrelevant.
How?
Accept, Reflect, and Redirect!
It’s not the distraction’s fault; it’s your focus.
TCF+ is the daily discipline and the daily focus!
Touches
Conversations
Face to Face or Zoom to Zoom
Plus +
Referrals
Database adds
Hires
And we all know the “R” in CRM is relationship!
Sometimes, these distractions come from A.N.T.S.: ants, say what? Automatic negative thoughts… (l learned this from Dr. Daniel Amen).
Let’s face it—agent recruiting and attraction are hard work and typically play out in the long game. They require frequent repetition of proactive tasks with infrequent positive feedback, which is fertile soil for negative thoughts and doubts.
The antidote? Complimentary resources from Recruiting Insight!
We’ve put together a library of resources to enhance your recruiting and attraction game – click here – to check it out.
What if… we didn’t fight distraction? We just made them irrelevant.
I was reflecting today that many things in life and business can be beneficial or harmful depending on how they are used or managed:
Fire, when contained and controlled, provides warmth, cooks our food, and serves many other beneficial purposes. However, when uncontained, it becomes dangerous, costly, and destructive.
Water in the right amount keeps us hydrated and healthy. Although rare, excessive water intake can overwhelm the kidneys, leading to a condition called hyponatremia, where sodium levels in the blood drop to unhealthy levels. (I was participating in a bike ride event where some participants had to be airlifted due to hyponatremia.)
When used responsibly, technology can enhance our lives, improve communication, and increase productivity. However, excessive or inappropriate use can lead to issues like addiction, mis or disinformation, decreased face-to-face interactions, and theft/scams.
Medicine, properly prescribed and taken, can cure illnesses and improve health. Misuse or overuse, however, can lead to side effects, dependency, or even resistance to treatment.
Sunlight is essential for vitamin D production and overall well-being. Too much exposure, though, can result in sunburn, skin damage, and an increased risk of skin cancer.
Like fire, water, technology, medicine, and sunlight, many aspects of our business and lives have dual potentials. They can be incredibly beneficial when used wisely and within limits, but they can also become harmful if mismanaged or overused.
It’s a balancing act that requires awareness and responsibility.
Business often throws us into situations where we feel stuck, unsure of the next step. Whether it’s a career decision, a personal dilemma, or just a general sense of being lost, not knowing what to do can be incredibly frustrating.
Here are some strategies to help you navigate these uncertain times:
Focus on Ends, Not Means
When you’re unsure of what to do, it can be helpful to shift your focus from the process to the outcome. Ask yourself, “What do I ultimately want to achieve?” By clarifying your end goals, you can better evaluate the different paths available to you. This approach helps you stay flexible and open to various methods of reaching your desired outcome.
Focus on Your Values
Your values are your internal compass. When you’re lost, they can guide you back to a path that feels right. Take some time to reflect on what truly matters to you. Is it honesty, creativity, family, or something else? Aligning your actions with your core values can provide a sense of direction and purpose, even when the way forward isn’t clear.
Keep Taking Action – Even If It’s Just One Small Step
Inertia can be paralyzing. When you don’t know what to do, the worst thing you can do is nothing. Even a small step can create momentum. Break down your larger goals into smaller, manageable tasks. Completing these smaller tasks can build confidence and provide clarity on what to do next.
Talk It Out/Get a Second Opinion
Sometimes, the best way to find clarity is to talk it out with someone you trust. A fresh perspective can offer insights you hadn’t considered. Whether it’s a friend, family member, or mentor, getting a second opinion can help you see your situation from a different angle and may reveal new solutions.
Trust Your Feelings/Gut
Your intuition is a powerful tool. While it’s important to gather information and consider your options, don’t discount your gut feelings. Often, your subconscious mind picks up on things that your conscious mind might miss. Trusting your instincts can lead you to choices that align with your true self.
Sleep, Hydrate, Rest
Never underestimate the power of basic self-care. When you’re tired, dehydrated, or stressed, your ability to think clearly is compromised. Make sure you’re getting enough sleep, drinking plenty of water, and taking time to rest. Sometimes, a good night’s sleep can bring a fresh perspective and renewed energy to tackle your challenges.
It’s okay not to have all the answers right away. The important thing is to keep moving forward.
Feeling lost or unsure is a natural part of business. By focusing on your end goals, aligning with your values, taking small steps, seeking advice, trusting your intuition, and taking care of your basic needs, you can navigate through uncertainty with greater ease.
Angela Duckworth said it well, “At various points, in big ways and small, we get knocked down. If we stay down, grit loses. If we get up, grit prevails. Grit and self-control are related but are not the same thing.”
How to get “gritty?” Duckworth identified 5 ways:
1. Pursue Your Interests: Find something that genuinely fascinates you. Passion fuels perseverance.
2. Practice Deliberately: Embrace mistakes and setbacks as part of the learning process. You’ll make errors when you practice, but that’s how improvement happens. View frustration positively—it’s a sign of growth.
3. Clarity of Goals: Be crystal-clear about your ultimate goal and align smaller goals with it. Clarity helps maintain focus and commitment.
4. Make Your Work Meaningful: Seek ways to infuse purpose into your tasks. Even minor adjustments can make your work feel more fulfilling.
5. Practice Optimistic Self-Talk: Replace negative thoughts with enabling thoughts. Encourage yourself during challenges.
Duckworth said, “Grit isn’t fixed—it’s something you can develop over time as you keep pushing forward.”
Two of my three sons are proud UC Irvine Anteaters (the other a Banana Slug), but today, I’m delving into a different kind of ‘ant’—the kind that can infest our minds.
Several years ago, I had the privilege of meeting Dr. Daniel Amen. It was from him that I learned about the concept of Automatic Negative Thoughts (ANTs), a term he coined in the early 1990s. The origin story of ANTs is as intriguing as it is enlightening.
After a particularly challenging day at his office, filled with sessions from suicidal patients to couples locked in conflict, Dr. Amen returned home only to find his kitchen overrun by ants. This infestation sparked a realization: just as ants had invaded his home, his patients’ minds were besieged by ANTs, stripping away their joy and commandeering their happiness.
Dr. Amen’s insights extend beyond mere observations. In his book about the brain’s profound influence on our well-being, he elucidates how each thought triggers a chemical reaction in our brains. Negative thoughts—be they sad, hopeless, or angry—prompt our brains to release chemicals that induce physical discomfort: hands turn clammy, muscles tense up, heart rates spike, and breathing shallows. Moreover, such thoughts can dampen the activity in our frontal and temporal lobes, impairing judgment, learning, and memory.
Conversely, positive thoughts have the power to release a different set of chemicals that promote a sense of physical ease and mental clarity. A happy or hopeful thought can warm your hands, relax your muscles, steady your heart, deepen your breath, and enhance your brain’s performance.
So, how do we combat ANTs?
Dr. Amen identifies several species of negative thought patterns, each with its own destructive tendencies:
Fortune Telling: This ANT thrives on pessimism, forecasting doom without any real evidence.
Mind Reading: A common ANT that convinces you of others’ thoughts without their input, often leading to misunderstandings.
Guilt Beatings: Words like ‘should’ and ‘must’ can whip up feelings of obligation rather than motivation, fostering negativity.
Blame: Casting blame renders you powerless, trapping you in victimhood.
Labeling: Derogatory names cloud judgment and can cause lasting harm.
The Path Forward:
When negative emotions surge, take a moment to jot down your thoughts. Identify the ANT at play and confront it. Challenging these negative thoughts diminishes their influence, reclaiming control over your mind and emotions.
“Onward and upward” is a mindset that requires optimism, empathy, curiosity, and action.
Optimism is the ability to overcome adversity despite the circumstances.
Empathy is understanding situations from another’s perspective with no judgment. The ability to choose to respond rather than to react.
Curiosity. To be effective, be curious: curious about how people are feeling, curious about why things happen, curious about the future, curious about steps to take to navigate difficult waters.
Action. The winners are the doers. Talk is cheap; action speaks.
When we make changes by design vs. default, we can craft a future that supports the growth we deserve.