I know it hasn’t been easy. But how often is it in our industry? Real estate rebounded fantastically after the COVID-19 pandemic lockdowns and we enjoyed some amazing months – some of our real estate professionals had the best few months of their career in fact.
But we know that challenges and tough times come and go. The people with the right mindset, a great supporting cast surrounding them and the will to be successful, no matter what, are the ONEs who will make it and in some cases, make it big.
Around the holidays, and especially this year, people ask me what’s next. What do I expect for housing in 2023? Economists and other real estate experts have mapped out next year in detail with a little wiggle room for things unanticipated.
So instead, let’s focus on how behaviors will change in 2023.
THE EFFECTS OF RISING RATES
The average interest rate on a credit card is now at a high of over 16% and could continue to increase. Like the mortgage rate increase, this was done intentionally to serve our overall economy – you have to accept the good with the challenging. During inflationary teams, HELOCs (Home Equity Line of Credit) become increasingly popular as lenders discount HELOCs, in a way, (or at least on introductory rates) to entice borrowers who are hesitant by other rising rates. But again, I encourage consumers to do their homework and be as informed as possible, especially in times like these.
At the same time, most homeowners will stay put next year, enjoying low interest rates they locked in a while ago. As a result, inventories will rise – in some markets more than others – while still, buyers could be priced out of buying a house. They’ll need an experienced real estate professional to navigate what’s ahead but that journey will be well worth it.
REAL ESTATE PROFESSIONALS TODAY
It’s said that 300-400K newly licensed real estate professionals joined the industry over the past couple of years. This was similar to the percentage growth of National Association of REALTOR® (NAR) members between 2005 and 2007. Many of today’s top-producing professionals and teams chose real estate as a career path during 2012-2020 when the market was on fire. So, they haven’t experienced a severe downward cycle like this (the last was in 2008). They’ll rely on the wisdom of more tenured REALTORS® as well as business coaching.
Now’s the time for leaders to step up, and confidently lead by example. It’s time to focus their energy and attitudes on moving organizations forward regardless of external forces.
True leaders will find others who can act as lighthouses, guiding them, their executive teams, their employees and others through difficulties ahead. Throughout life and at any given time, we can either be the lighthouse that helps guide others or we may need the help of a lighthouse. When we‘re lost, or beginning to lose hope and starting to sink, it’s the lighthouse, figuratively, that brings calm and stable footing.
Are you a lighthouse leader? Do you provide light, hope and safety to the people you lead?
FOCUS AND ATTITUDE
I have found that focusing on purposeful and meaningful work gets me and our team through the uncertain and tough times. While your instinct may be to pull in and stop serving others, this can actually dramatically effect your mindset and your ability to make an impact.
Instead, focus on the metamorphosis that you can experience during this time. Similar to a caterpillar turning into a butterfly, you may find yourself in a cocoon during this challenging time of life. The question is, how will you emerge? Do you emerge as a victim – “the world did this to me” – or you emerge having embraced the opportunity – “this is the best thing that happened to me”?
The choice is yours – to evolve and transform to become clear on your passionate purpose or to not.
Kuba Jewgieniew is the CEO And Founder of Realty ONE Group, one of the fastest growing franchisors in the industry. He started Realty ONE Group in 2005 with a 100%-commission model and an emphasis on innovation, disruption and fun. He’s won numerous awards and has been recognized for his innovative thinking and leadership. And, with a dynamic leadership team and leagues of committed followers, Realty ONE Group plans to open offices around the world, bettering communities and lives everywhere, leaving a legacy for generations.