Adapting to the Future: Do You Have the Crystal Ball?
by Marilyn Urso, PMN
Today’s real estate market is full of questions and surprises. How high will mortgage interest rates go? Will the buyers change their minds and wait for lower housing prices? Will the sellers panic and lower their prices? What will happen next? As the title says – “Do You Have a Crystal Ball?”
I’ve worked in real estate for almost 30 years and I’ve been involved with my local Long Island Board, the NYS Board, and NAR over the years as well as Women’s Council on all levels. The Women’s Council of REALTORS® has always been one of my greatest resources in the industry and it has also taught me to share my thoughts, ideas, and experience with others to make us all stronger. So, let’s see if we can find that “Crystal Ball”.
Let’s start by looking at the questions and concerns of consumers as we begin the second half of 2022. As I see it, some of these items that have people talking include:
- Mortgage Interest Rates: Will they go up? How high? Can I still afford to buy the home I want?
- Fear of Inflation: Gas prices, food prices, building materials, everything is so much more expensive today. When will it stop?
- Housing Prices: In almost 30 years in business, I have never seen homes priced as high as they have been in 2021 and the first half of 2022! Ridiculously high and yet they are still having bidding wars and all cash buyers!
- Competition to Purchase: By the end of 2020 through the current month, the number of buyers has far exceeded the available inventory. I have never seen such low inventory, and yet we sold more homes in 2021 in my local market than we ever did before! How is that possible? Simple, the Days on Market is extremely low, less than 2 weeks in many cases. So, while there may only be 30 homes available in a community, there might be 75-100 in contract with sale pending. Currently, inventory is increasing and competition is less (5 people bidding against you instead of 15) This gives us some hope that we could go back to a more normal process working as Realtors.
Now let’s look at how this compares to the past 2 years.
- Mortgage rates were the lowest they’ve ever been for several years
- Until 2022, there were no real inflation concerns – inventory shortages in stores were common but it was from “panic buying” more than a shortage of materials.
- Housing Prices skyrocketed!
- The competition was crazy due to all the buyers who exited from the major cities to our communities since they could work from home and wanted more family space. This brought about the extremely low housing inventory along with record sales in many suburban areas – record prices and record days-on-market!
As we move forward, given the items of concern above, the question for many Realtors is “What do I do now to stay in business?” Many of us are frazzled by the “Bidding Wars”, high demand, and how to deal with buyers who “didn’t get the deal,” not to mention the stress of how to set a price on new listings and where to get your next listing or buyer client. So here are my ideas – they have worked for me for almost 30 years and I am happy to say they are still working.
Can “Old School” techniques still work - things like print advertising, direct mail (EDDM), door knocking, or cold calling? I have never been a fan of door knocking or cold calling, but I do think that direct mail works. It keeps you in the eye of the local homeowners and if you do it consistently, you will be remembered. Let’s face it, the commissions on 1 or 2 listings in today’s market would more than pay for 10 years of direct mail campaigns!
The other best techniques for accumulating business are networking in your local community organizations as well as keeping in touch on a regular basis with your past customers and clients. In the past 3 years I have done some very large sales just from these 2 techniques. Always be letting people know you are still a Realtor, or for the new agent, let them know you are so excited about your new career. It does work. It has for me.
I guess the last question is: “What new Tech/Marketing is available?” …But that would be an article for someone else to write. My existing campaigns are working well and I am so enjoying catching up and helping my past clients and friends as well as the other new clients my marketing has brought in. So good luck to all & feel free to reach out to me for any questions or samples of what I use. In Women’s Council, it’s always about sharing & mentoring for me!
About the Contributor
Marilyn Urso has been in the real estate business for over 27 years. She was a Broker /Owner of her own real estate office for over 22 years and is currently an active Associate Broker working for Homes by Mara Realty in Syosset.
Marilyn has been an instructor at the Long Island Board of REALTORS® since 2007. She has written and instructed various continuing education modules for LIBOR. She has also been an instructor for the NYS Association of REALTORS® as well as the National Association of REALTORS®.