As we approach election time, an added element in the chaos and uncertainty of today’s climate, it’s helpful to lean on data to help set a strategy and prepare your real estate business. Take it in. Build your strategy. Use it to help reassure your clients and set yourself up for success in 2021. Here’s what the numbers are saying about Q4 and beyond.
One thing we are consistently hearing from our clients: agents are busy. With the release of spring’s pent-up demand and a seemingly endless “summer season,” the housing market has made a miraculous recovery. All things considered, it’s a good problem to have. Typically as we move from October into November and December, our industry experiences a slow-down.
That makes November and December the best time to finalize your strategy for the new year, make sure you have the tools that are going to help you prioritize work and support your agents. According to the Real Estate oracle, better known as the great team at Keeping Current Matters, during election years, there tends to be even more of a slow-down in real estate transactions.
KCM shares that BTIG, a research and analysis company, looked at new home sales from 1963-2019:
Non-election years ~ 9.8% decrease in transactions
Election years ~15% decrease in transactions
But, as exhausted as the word “unprecedented” may be, this year’s slow-down will probably not be business-as-usual. Prepare to be more busy than you usually are in the coming months.
Redfin just released a new report, and based on the data, they expect home sales to continue to grow this fall, and are forecasting more home sales in 2020 than in any year since 2006.
Yes. More home sales in 2020 in any year since 2006.
They found that only 22% of consumers are actually changing their real estate plan. This is down from 32% in a November 2019 report, signaling that the pent-up demand from springtime lockdowns is skewing the numbers for the positive. 65% of homebuyers and sellers in the survey said the upcoming presidential election isn’t impacting their plans at all, which is up from 60% in November 2019.
Couple these statistics with KCM’s reported trend that the year following the election usually sees overperformance, and it certainly looks like we are heading for a very busy start to 2021, and the momentum is expected to continue at a rapid clip.
So how do you hone your strategy to keep business moving in the mean time and prepare for the rush of 2021?
Reach out, and be there for your customer right now
The decrease in transactions during election time is due to the uncertainty in results, and worry about change or it being “the right time” to transact. Consumers are nervous. Rather than the physical barrier of the lockdowns, this is a mental barrier that you can help them overcome with data, knowledge, reassurance and trust.
Educate yourself as much as possible on your market and market trends
Take this data, and translate it for your clients and prospects to help build confidence. Position yourself as the local expert, and communicate the trends and data you have at your disposal. When you meet them with empathy, reassurance, and facts, you’ll help them understand why it makes sense to buy or sell, and pull them out of analysis paralysis.
Prepare your business for 2021 with the right tools and technology
With pent-up demand leading into a year that’s already poised for overperformance, make sure you have the tools and team in place to take advantage. There is so much opportunity in our industry right now for teams and agents who are educating themselves, putting their consumer first, and empowering themselves with the tools to engage and communicate effectively.
Consumers crave the hand-holding and your expertise now more than ever, so make sure you have the tools to meet them where they are, and exceed their expectations. Your service has to scale in order to see success.
Provide an exceptional app experience. This is where your consumers are living. Allow them to search on their terms.
Employ automated marketing, lead response and nurturing service to help agents prioritize their work while still providing incredible service.
Leverage your CRM to help you keep your team connected and to connect with the community through custom landing pages for events, promoting and sharing community highlights, etc.