Real estate brokers, team leaders and executives from across the country have descended upon the historic Colorado Springs Broadmoor Hotel for the 30th annual Gathering of Eagles event. And despite their different brokerage models and business strategies, a singular hot topic of discussion has been “The Shift.”
For the more than 370 GOE attendees, “The Shift” refers to the way housing market conditions across the country are starting to slow down after a frenetic few years, thanks to a confluence of factors brought together by the COVID-19 pandemic. Brokers and real estate executives are now tasked with guiding agents through this change by finding them ways to continue to build their book of business and generate leads.
And while there has been some industry chatter that this latest slowdown is a sign of a greater change, the consensus at GOE is that it’s simply a cyclical shift. Larry Kendall, of Ninja Selling, addressed the topic during his keynote speech Monday morning.
“Cyclical change is the one we are most concerned about right now,” he told the crowd gathered in the main ballroom at the Broadmoor’s International Center. “What we have just been in the last year or so is not normal and I think it is great that we are finding our way back to more of a normal market.”
According to Kendall, four factors have been driving the wild level of home price appreciation we have seen during the past several years: more Millennials entering the housing market, weak housing supply, the third great migration driven by remote work and historically low interest rates. While mortgage rates certainly have increased in the past few months, the other three factors have remained unchanged. This, combined with economic conditions, such as the continued demand for employees and the billions of dollars of equity the vast majority of participants in the housing market are currently sitting on, lead Kendall to remain optimistic about the nature of this market shift.
For agents and brokers who seek sustained success in this changing market, in addition to maintaining contact with clients through handwritten notes, “interview” calls and other communication, as well as making sure to show they’re up to date with their online listing and marketing techniques, Kendall said they should be willing to embrace products such as iBuyers and Power Buyers.
“They are not disruptors,” Kendall said. “I think we need to face it that we can work with them and use them to unlock more of the market.”
Looking ahead, Kendall is confident the agents and brokers who not only put in the legwork but who are willing to expand their tool kit to include some newer products, will be the ones who thrive as the market continues to shift.