Jacqueline Kyo Thomas
Working in real estate requires more than just knowing square footage and building codes. It also requires keen intuition, strong negotiation skills, an understanding of human behavior, and a commitment to keeping up with ever-evolving market trends. In this article, we’ll provide practical ways to stay current with market trends.
Why Staying on Top of Market Trends is Non-Negotiable for Real Estate Agents
You already know the basics and you’re licensed and ready to sell real estate. But, you also need to embrace the fact that, to be successful in your career path, you must stay on top of the trends.
Real estate trends are changes in the property market based on what buyers and sellers want, how much they're willing to pay, and new technologies or practices. If you don’t know what’s in demand, you won’t be an effective agent.
For example, here’s a quick rundown of the newest real estate trends:
- Remote Work and Home Offices - The COVID-19 pandemic shifted many jobs to remote work. This increased the demand for homes with dedicated office spaces or versatile rooms that could be converted into workspaces.
- Migration to Suburbs - Remote work also led to a mass migration to the suburbs. Urban dwellers, seeking more space and a respite from the sky high prices in city centers, have been looking at suburban or even rural areas to work and live.
- Green and Sustainable Living - Eco-friendly homes and features like solar panels, energy-efficient appliances, and sustainable materials are becoming more popular with today’s home buyers.
- Smart Homes - Buyers are looking for houses that are already equipped with smart thermostats, security systems, and other tech-savvy amenities.
- Multigenerational Homes - The economy has pushed a lot of families to consider living together as a permanent arrangement. Properties that can accommodate extended family members are becoming extremely popular.
- Affordability Challenges - In many markets, there's been a trend of rising home prices. First-time homebuyers need expert advice to properly find the right property for their budget.
- Virtual Tours and Digital Transactions - With technological advancements and the challenges posed by the pandemic, virtual home tours, and online closings have become more prevalent.
- Evolving Commercial Spaces - With more people working from home, the demand for traditional office spaces has shifted. This has led to unique challenges in commercial real estate.
- Short-Term Rentals - The popularity of platforms like Airbnb or Vrbo has led to an increased interest in real estate for short-term rental purposes.
- Focus on Health and Wellness - Properties with features that support health and wellness, like proximity to parks or those with advanced air filtration systems, have gained traction in recent years.
Of course, these trends can vary by region and may change based on economic conditions, technological advancements, and shifts in society. However, it’s your job to stay updated on current trends. Here’s why:
Meeting Client Expectations
Your clients are looking to you as their expert. They're placing their trust in you to be on top of the market, understand the right pricing strategies, and pinpoint whether it's leaning towards buyers or sellers.
Getting the Price Right
By taking the market’s pulse, you can price homes just right. Overprice and a property might just sit there collecting dust. Underprice and you might be leaving money on the table for your client.
Leveraging Your Negotiation Skills
When you're in tune with the market trends, your negotiation game is on point. This means you're in a stronger position to secure the best deals for your clients.
Building Trust and Credibility
Knowledge isn't just power. It's also trust. The more you showcase your grasp of the current market, the more your clients will trust and refer you. They'll see you as the go-to person in real estate.
Staying Agile in a Shifting Market
The real estate industry is always shifting. By staying updated and adapting your strategies when needed, you'll always be on top of your game.
Top Ways You Can Stay Updated with Real Estate Market Trends
So, how do you stay on top of market trends effectively? Let’s break it down.
Stay Connected to Your Local MLS (Multiple Listing Service)
Make it a habit to check the MLS daily. By reviewing new listings, noting changes in existing ones, and observing sold properties, you’ll know exactly how the market is behaving daily. Many MLS platforms offer notification settings for specific areas or property types. Take advantage of these.
Dig deep into the weekly or monthly market reports and study metrics like shifts in inventory and average days on the market. If your local MLS hosts training sessions or workshops, mark your calendar and attend. These can be gold mines for tips and best practices.
Subscribe to Industry Publications
Dive into publications like Realtor Magazine, Inman News, or your local real estate journals. Subscribing to top-tier industry publications is essential. Both online and print versions have their merits. Set aside time each week for industry reading, but don't just read passively. When you come across new strategies or tools, challenge yourself to integrate them into your workflow. If an article strikes a chord or sparks curiosity, consider reaching out to the author. Engaging directly can lead to deeper insights and might even kickstart valuable professional relationships.
Attend Real Estate Seminars and Webinars
To continuously expand your knowledge, keep an eye out for seminars and webinars hosted by industry associations or renowned real estate professionals. While attending these sessions, be proactive. Engage in discussions, ask questions, and immerse yourself in the learning process. After each seminar or webinar, set aside some reflection time. Jot down key takeaways and brainstorm ways to implement this new knowledge into your practice. These sessions also provide a chance to network, so don’t waste the opportunity to connect with speakers and fellow attendees.
Get to Networking
Speaking of networking, be sure to continuously build relationships with fellow agents, brokers, and industry pros. Their firsthand experiences can be gold for understanding trends.
For example, make an effort to attend industry events, such as open houses and local community gatherings. Set a personal goal to connect with a specific number of new industry professionals each month. But remember, networking isn't just about quantity. After meeting someone new, send a thoughtful follow-up email or note to nurture the relationship. Professional associations, like the National Association of Realtors (NAR), can be a great platform for networking.
Find a Coach or Mentor
If you're newer to the game, a seasoned coach can guide you and share valuable market insights.
Seek out potential mentors whose career trajectory you admire or resonate with. Before initiating a mentorship relationship, be clear about your objectives. Ask yourself: What do I hope to learn? And how can this relationship be mutually beneficial?
Once you've found a mentor, dedicate yourself to learning. Schedule regular meetings, such as a weekly coffee chat or a monthly strategy session, to develop a reliable relationship and hold yourself accountable.
Engage in Online Communities
Pop into real estate forums, Facebook groups, or LinkedIn threads. Engage in discussions about the market's pulse.
By actively participating in online real estate discussions, you can connect with a global community of professionals. These platforms offer a space to discuss recent market changes, share experiences, and even collaborate on challenging transactions. Engaging in these discussions not only enhances your knowledge but also expands your professional network online.
Take Advantage of Real Estate Analytics Tools
Tools like Zillow and Redfin aren't just for listings. They can clue you into market behaviors. Beyond showcasing properties, these tools offer detailed insights into market behaviors, price trends, and buyer preferences. Leveraging this data can significantly enhance your understanding of current market dynamics and help tailor your strategies for better results. If you haven’t already, sign up for an account on these popular real estate platforms.
Follow Real Estate Influencers
In the digital age, real estate influencers are everyone and they’re sharing their wisdom through blogs, podcasts, and video channels. Subscribing to these sources can offer fresh perspectives, innovative strategies, and expert analyses of market fluctuations. Their experience and insights can be a valuable supplement to your understanding of the market.
Review Comparable Sales Often
Regularly check out recent sales in your key areas to stay sharp on pricing trends and demands.
Pricing is a crucial aspect of real estate, and one of the best ways to gauge it is by reviewing comparable sales. Regular assessments of recent sales in your primary market areas offer a direct insight into current pricing trends and demands. This hands-on approach ensures you're always in sync with the market.
Final Thoughts
Consistent learning and adaptability are not just buzzwords. They are the backbone of delivering high-quality service to your clients. By keeping yourself updated, you position yourself as an authority in the field. Clients seek and value an agent who can provide them with accurate insights, guide them through uncertainties, and advocate for their best interests. Use the above strategies to stay up to date on what’s happening now in the real estate market.