2023 has been another crazy year in the housing market. But the last few years have also been a roller coaster of ups and downs. The COVID-19 pandemic, inflation, political upheaval, interest rate hikes from the Fed—and so much more.
If you’re a real estate agent, you might be feeling the burnout. The last few years have probably taken a toll on you and your business. Maybe you’re even considering throwing in the towel and getting into a totally different industry…
Don’t do it! Before you give up or let down, hear me out. Because there are some practical ways realtors are thriving in 2023’s housing market. By practicing some of these tips and tricks, you can get back to selling homes and making money again.
Some have even wondered, “Are realtors making money in 2023? Is it even possible? Or do we just need to wait out the year in survival mode until 2024?”
Yes, realtors are still making money in 2023. But not without an extra layer of persistence, education, hustle and grit.
Let’s learn some best practices so you can thrive in today’s fast-paced real estate market.
What’s Going on With the 2023 Housing Market?
Just like 2020, 2021 and 2022, 2023 has been a wild ride for real estate agents, including buyers and sellers.
Due to skyrocketing inflation and other factors, the Federal Reserve Bank started raising interest rates in March 2022. (Why does that feel like so long ago?)
These rate hikes turned the real estate market on its head. A July 26, 2023 article by the Associated Press shows just how impactful (and frequent) these rate increases have been:
“The Federal Reserve raised its key interest rate Wednesday for the 11th time in 17 months as part of its ongoing drive to curb inflation. But it provided little guidance about when—or whether—it might hike rates again.
“Wednesday’s move raised the Fed’s benchmark short-term rate from roughly 5.1% to 5.3%—its highest level since 2001. Coming on top of its previous hikes, the Fed’s latest action could lead to further increases in the costs of mortgages, auto loans, credit cards and business borrowing.
“Speaking at a news conference, Fed Chair Jerome Powell was noncommittal about any expectations for future rate hikes. … Powell said the Fed’s policymakers may or may not raise rates again at their next meeting in September.”
How do these increases impact the overall housing market in America? Let’s take a quick look before learning how you can make yourself an unstoppable real estate agent.
How Rate Increases Affect the Market
These rate hikes have caused a lot of uncertainty and have also kicked a lot of potential buyers out of the housing market.
This is because, as I’m sure you know, when it costs more to borrow money, fewer people can get loans. The higher the interest rate on a home is, the higher the mortgage payment is.
For instance, let’s say a family could afford a $2,000 monthly mortgage payment at a lower interest rate based on their household income. But a higher interest rate now pushes the mortgage payment up to $2,500 for the same type of house. They’re no longer able to qualify for the loan. Now this family has to wait until circumstances change before they can buy a home, effectively being booted out of the market.
The State of Real Estate in 2023
A recent Forbes article titled “Housing Market Predictions for 2023: When Will Home Prices Be Affordable Again?” shines a little more light on what’s been happening in real estate this year and where things could be heading.
“The national average 30-year fixed mortgage rate crossed the 7% mark in the third week of August [2023] …”
“The median existing-home sales price also broke through $400,000 for the first time in 2023, hitting $410,200—the second-highest price ever recorded—and is now poised to surpass the June 2022 all-time high of $413,800, according to the National Association of Realtors (NAR).
“Meanwhile, existing monthly home sales dropped 3.3%, with all four major U.S. regions posting year-over-year sales declines.
“Despite high mortgage rates, the market remains as competitive as ever thanks to strong demand coupled with tight inventory supply, due, in part, to those who purchased homes in recent years at record-low interest rates staying put. These and other factors form a perfect affordability crisis storm that continues to sideline many aspiring homeowners.”
In summary:
- Homes are still very expensive.
- Sales are dropping.
- Interest rates are still going up.
- The market is as competitive as it’s ever been.
If this feels like a perfect storm, don’t sweat it! Every “problem” brings a silver lining. I truly believe this.
Don’t wait for external forces to swoop in and fix whatever problems you’re facing in your real estate business. There are things you can do today to take charge of your results, your income and your numbers. The key is to believe in yourself and take action.
So, here are a few practical ways to grow your business in 2023’s housing market. Realtors around the nation are practicing these simple steps to not just survive 2023, but to thrive!
Take Back Control of Your Business
The most important asset you have is your time. We’re all given the same amount of time in a day, but we all use it differently. Some of us tend to squander it on distractions, while others tend to be hyper-focused. It’s hard to strike a healthy balance when it comes to time management.
But if you’re struggling to see the results you want as a realtor, taking back your schedule is one of the best places to start.
The path to building a top 1% real estate business starts with getting control of your time. This will lead to taking back control of your business and bringing in more leads and income.
I won’t focus for too long on time management since I’ve written about it in other places. But the method I’ve found to be my superpower is called the Pomodoro Technique.
How to Use the Pomodoro Technique
Ever sit down at your desk to get a bunch of important real estate tasks done and suddenly three hours have gone by and you didn’t do anything you wanted to do?
We’re all susceptible to distractions in the modern age. Especially with our trusty smartphones at our side at all times.
The Pomodoro Technique is a great way to get out of the distraction-zone and into the focus-zone.
Pomodoro is a time management method where you pick one task and focus on it for 25 distraction-free minutes. Then take a 3-4 minute break to stretch, get a drink of water, check your phone, whatever.
After your break, start the timer for another 25 minutes. Go back to the same thing you were doing before if it’s not done yet. Or if you did finish it, start a new task.
Studies show that people who use the Pomodoro Technique save an average of 16 hours a week by being more focused and less distracted.
Try it! You might surprise yourself with how much you can get done. (And to learn even more tips and tricks to get more done, check out my article, “How to Sell Homes Faster and Have More Time for Yourself.”)
Start a Side Hustle to Bring in Passive Income
Another way to thrive in today’s real estate market is to start a side hustle that brings in extra money, especially passive income.
Since being a realtor can bring a lot of ups and downs, it can be super helpful to create multiple revenue streams.
One of the ways to do this is to look into something called land flipping. It might not be for everyone, but you also might be surprised to learn how simple it is to get into. I’m not saying it’s easy to do, but it is a relatively simple business model—one that can provide new passive income streams to help you weather any real estate downturns.
Check out more tips in my article on land flipping to see if this would be right for you.
7 Tips to Thrive in Today’s Market
I want you to excel in your real estate journey—no matter where you are in your career.
If you’re trying to get business back on track and reach your goals, here are seven more tips for thriving in the 2023 housing market.
(1) Visualize your success
The power of visualization has been studied and talked about for centuries now. But a lot of people are still not putting it into a daily practice.
You need to be visualizing where you want to go in order to get there.
Spend a few minutes in the morning visualizing where you want to go in the future and what you want to achieve. Be specific. When I had a goal to win a top realtor award, I printed it and hung it up in my bathroom as motivation. And you know what happened? I eventually won the award and went on to win many other awards as a top 1% realtor.
Visualizing makes a massive difference in your overall mindset. It also helps you align your actions with your aspirations.
If you have any doubt in your mind about what you can accomplish, you won’t work as hard because your brain is expecting you to fail!
(2) Create a hit list (not a to-do list)
A “hit list” is where you write down the top 3-5 tasks that you must do that day. This will help you focus and channel your energy more effectively. It will also help you prioritize the right things so you’re not distracted on mundane unimportant tasks.
Some people also find it helpful to create a “not-do” list. This is a list of the things you know you don’t want to do, the things that you tend to get sucked into but that won’t help you achieve your goals.
(3) Practice mindfulness
Real estate agents are thrown into all kinds of wild situations. It’s super important to train yourself to stay calm and relaxed. Meditation, self-reflection, focus on your breathing, exercise. It might seem cliche, but mindfulness and being present in the moment with your clients will make a big difference.
Remember, people are looking to you as the expert. They’re asking you questions, relying on your expertise, trusting you with important details and negotiations related to the biggest sale or purchase of their lives.
You need to be a rock for your clients! You need to be on your A-game—to be calm and focused. Otherwise, you could lose credibility and they might not trust you to be their agent. Don’t let this happen. Practice mindfulness.
(4) Positive affirmations
You can’t thrive in 2023 and beyond with a negative outlook. If you get stuck in a rut (and sometimes we all do), you need to snap yourself out of it through positive affirmations.
Don’t let yourself complain or gripe about external factors. Instead, focus on the things you can control and your own strengths.
Celebrate your wins—whether big or small! One of my favorite sayings is, “Small hinges move big doors.” And it’s true. Every little thing you do that is leading to your goals is adding up to eventually help you cross that finish line.
Celebrating your accomplishments will train your brain to accomplish more. With the right mindset, you’re capable of achieving greatness.
(5) Break down goals into small milestones
When you have big goals you want to achieve, it’s important to break them down into smaller milestones.
It’s like the old saying, “The journey of 1,000 miles starts with one step.” You’re going to be less intimidated by a big goal if you break it into smaller, more reasonable chunks.
If you’re feeling overwhelmed by unrealistic deadlines and goals, try breaking things down into smaller pieces. Set realistic deadlines for yourself.
This will start training your mind to think, “I can do this!” instead of “How am I ever going to do this?”
See the difference? Break things down into manageable tasks.
(6) Stay accountable
Some people also find it helpful to partner with others to keep them accountable.
If writing down your goals and creating a hit list isn’t enough to keep you motivated to actually doing the things you need to, find an accountability partner. Someone who can help you stay on track.
Maybe it’s as simple as meeting them for coffee once a week and talking about your progress. Or a daily check-in via text message.
When you tell others about your goals, it becomes another motivation to help you achieve them. This is because you don’t want to disappoint them and, subconsciously, want to impress them that you hit your goals.
Don’t waste your time aiming for the target. Sometimes you just need to shoot!
(7) Avoid multitasking
People lose track of their goals because they tend to fill their plates with every single thing they need to do. But this will just make you feel overwhelmed.
Don’t take on three tasks at once. Use the Pomodoro Technique to focus on one thing at a time.
It is scientifically proven that multitasking slows down your workflow. Research shows that every time you veer off task it takes 23 minutes to get back on track. That’s a lot of wasted time!
Don’t try to do everything all at once. You’ll also just make yourself go crazy.
It’s Time to Bet On Yourself!
I know you can unlock your full potential and succeed in today’s competitive market.
When I was a realtor, I saw lots of ups and downs and found out how to keep selling. I was a top 1% real estate agent for 17 years in a row. And now I’m helping others learn how to do the same through my 3-day digital marketing mastery class.
My class will show you how to level up your real estate game and stand out from the competition.
You have what it takes to soar to new heights!
Sign up for my 3-day digital marketing mastery class and become an unstoppable real estate agent who can weather any market trends.
