By all accounts the headlines in the real estate industry remain very positive! In terms of the new homes segment of the industry, the Mortgage Bankers Association (MBA) said that applications to purchase newly built homes are up 54% over the same time last year and up 20% from the prior month. And, new housing starts increased more than 17% to an annualized pace of 1.2 million but still lags behind the levels needed to keep up with demand. Dr. Lawrence Yun, chief economist at the National Association of Realtors was quoted as saying that, “More homes therefore need to be built to help relieve the housing shortage.” And, that, “The country needs at least 1.5 million units (on an annualized basis).” Read more here. Existing home sales are up, pended units are up, and the imbalance between demand and supply continues to push sales price up and inventory levels down.
And, a very important detail that will undoubtedly fuel the industry’s future; Dr. Yun also shared that approximately 5% of the workforce prior to COVID-19 “worked from home” and that that rate is forecast to climb to 33% moving forward. Imagine the impact of 1/3 of the workforce working from home – do you think that might change preferences in terms of where people live and the amenities they value? I believe so, in a major way!
So what’s the most important takeaway from all of this? In my opinion, it’s having live consultations with every single person in your trusted network of contacts and past clients. Every person you’ve ever interacted with in your real estate career should hear from you live, or better yet, see you on a video call, to make sure their view of the real estate market isn’t tainted by the general news headlines or anything else that may be clouding their opinion of the market.
I realize it’s tempting to simply assume that email newsletters, the occasional “happy birthday” note, or intermittent social media posts are maintaining the connectivity needed with your contacts and past customers, but it’s not. Nothing, in a time where there’s so much noise and confusion in the media, will replace a meaningful trust-based personal conversation with YOU. I challenge you to set some daily targets, 3, 4 maybe 10 live phone calls to your network every day and make sure they get their real estate news headlines – FROM YOU!
Another incredible line-up of sessions for you this week! On Tuesday, 8/4 at 9:00 a.m. Pacific, “Getting Started Using Videolicious”, then “Hosting a Virtual Open House on Facebook Live” with Katie Lance on Wednesday, 8/5 at 8:30 a.m. Pacific, and another dynamic “Women Who Lead” panel hosted by Teresa Palacios Smith on Wednesday, 8/5 at 10 a.m. Pacific, featuring Candace Adams, Mary Lee Blaylock, and Joan Docktor – WOW – titans in the industry! And a session on developing a MicroFarming Strategy with Sherri Johnson, Thursday, 8/6 at 10 a.m. Pacific.
I trust that you’re all motivated and inspired with the opportunities this market is presenting, now we just need to get out there and do the work! Have a wonderful week!