Chicken Salad (not chicken sh*t) for the MLO Soul
Webinar Series
Thursday, May 11th – 10:00AM Pacific
2020 was a year of massive changes, but it’s not just about the pandemic.
The real estate market has also seen its fair share of ups and downs. To put it simply, the market has gone through a hill – it went up, and then it went down, which is typical for spring. This season is usually characterized by more listings as everything, including people, moves during this time.
However, this year is different. According to new listing data for May, we only have 58k listings, while last year and two years ago, we had 76k and 74k, respectively. In 2015, we had 100k listings in May, which is twice the number we have now. With half the listings, there will be half the loans, and the rates being as high as they are means refi’s are out of the question. Millennials are often cited as the reason for the low volume, but is this the real cause?
While some people point to low demand as the issue, it’s not the only factor. Millennials have been hit hard by high rates, low wages, student debt, lack of inventory, and different values. Moreover, the effects of the COVID-19 pandemic, telecommuting, and a rise in contracted workers who value autonomy and remember the 2008 housing meltdown have all played a role. It’s not just about millennials being a pain in the neck.
So what’s the solution?
Accountability breeds responsibility, and we need to take more responsibility for the state of the market. As an industry, we must be stewards and be held accountable for the health of our sector.
In two days, there will be a web event to help you identify problems based on market conditions and your involvement with not only your success but the industry’s success. At the end of the event, you will be provided with the presentation, which you can share with your clients. This presentation doesn’t cost you money, but it requires you to change your habits, which is nearly impossible.
It’s time to work on your plan for sheer sustainability. This market will make you obsolete if you don’t change. Active listing data all the way back to 1982, as shown in a graph from the National Association of Realtors (NAR), tells the story. The big hump in 2008 is clearly an outlier, and our current situation on the far right is also an outlier, with way too much and not nearly enough inventory. The average is the grey line in the middle, and it’s clear that we have a long way to go to get back to even average inventory.
Inventory means loans, and refi’s are nearly extinct. Here’s what you need to do to succeed:
1/ Identify market trends and opportunities they present, not obstacles and walls; those are easy to spot.
2/ Find your place in the solution.
3/ Establish a plan of attack that is workable financially, intellectually, physically, and technologically.
4/ Make a day-by-day and intraday time-blocked plan to execute your plan.
5/ Be self-aware and honest with effort before judging results.
6/ Give yourself at least 30 days of daily delivery casting outcome on the result.
If you feel overwhelmed, don’t worry. Join the web event and get the help you need. It’s time to take action and move forward.