Realtor friends, let’s address the elephant in the room: our industry is in a recession. The US economy may still be growing, but with the jump in interest rates over the past 20 months and tight inventory, we have experienced four consecutive quarters of negative growth (a recession is defined as two consecutive quarters of negative growth). So we’re in a recession. In fact, nationally, we are at a ~23% drop in transactions year over year, with some cities even experiencing a staggering 40% decline in transaction count. 

Interest rates will most likely not come down significantly for at least 6-12 months, so we are going to continue to live this market for the short term. I want to share three strategic ways to sustain and even grow your real estate sales business in this contracting market.

Increase Your Activities

When sales contract, it’s critical that your efforts expand. How much more should your efforts go up? At least as much as the market has gone down. So if the market is down roughly 25%, then we are going to have to increase our activities by at least 25! The simple truth is this: the more activities you engage in, the more leads and opportunities you generate. This proactive approach is crucial in ensuring a steady stream of potential transactions to maintain your sales and income, and preserve a healthy peace of mind, too!

Build Your Skills

In a receding market, the value of your skills cannot be overstated. Sharpening your skills directly correlates with higher conversion rates throughout the residential real estate sales funnel. We will explore the sales funnel in a future video. For now, know that increasing your proficiency will enable you to convert more leads to successful closings, maintaining a steady transaction flow despite market challenges.

Increase Lead Flow or Join a Team

When the industry takes a downturn, securing a consistent lead flow becomes more vital than ever. While increasing your marketing budget is one way to achieve this, it gets expensive … quickly! So be careful and hold your marketing dollars accountable. Another highly effective strategy is joining a sales team. Sales teams often have the resources and structure to generate more leads per agent than an individual Realtor might manage on their own, providing a buffer against the market’s unpredictability.

While the market’s current state is indeed challenging, it is not insurmountable. By increasing your activities, honing your skills, and increasing your lead flow—whether through increased marketing efforts or joining a sales team—you can safeguard your income and continue to thrive.