The real estate market is constantly changing, and with those changes come opportunities for REALTORs to thrive, even during downturns such as the one we are currently in. Many REALTORs may be feeling the negative effects of this decline; however, this period of uncertainty is a huge opportunity for growth and success.
The Upside of Market Shrinkage
One of the most significant challenges of a downturn is the overall market shrinkage, which means there are fewer total commissions to earn. For example, if the market shrinks by a third, you have to work 50 percent harder to earn the same amount of money. However, the flip side is that you have gained 50 percent more market share. When the market returns to normal, your earnings will increase by 50 percent. This is why the saying "businesses are made in recessions" stands true.
Stay Productive in Slow Times
It is important to stay productive during market shrinkage, even though your productive activities may yield fewer results. Your focus, instead, should be on endeavors that will yield long-term results, such as building your network, establishing relationships and improving your skills. When the market returns, these efforts will translate into huge gains.
Keep a Positive Mindset
Moreover, it is critical to maintain a positive mindset during a downturn. As a REALTOR, you need to believe that there will be rewards for your current productive actions when the market returns. A positive mindset helps you stay focused, motivated and productive. Confidence and positivity will get through this period of uncertainty and enable you to come out stronger on the other side. This is science: The University of Oxford found that happy workers are 13 percent more productive.
Unfortunately, many agents will leave the business during a downturn because they become demoralized. If you can stay positive and focus on the valuable activities outlined above, you will reap the rewards longer term. Use this time to stand out and establish yourself as a leader in your market and the industry.
Focus on the Long Term
We have to look back almost 15 years for the last true downturn; many in the business have never experienced a shift like this before. In the last downturn, the market rebounded by more than 20 percent in one year during its recovery. As such, it’s important to remember that the downturn is temporary and will likely be relatively short. Most experts predict that the Texas market will rebound strongly in Q1 2024, which makes this a blip in a long career. It’s important to focus on the long-term impact your business will have and grow market share, rather than the short-term difficulties.
