Half full, half empty, so what?
The Property Academy has 126 members ranging from single branch businesses to one with 47, the majority have 2-5. They tend to be market leaders or at the very least are aspirants to be at the top and more, are actively doing things to get there, not just wishful thinking.
I mention this as my thoughts and beliefs might be skewed by principally working with positive people all of whom are seizing the opportunities this crisis has created. I’m only too aware, thanks to social media and industry forums, that there are others with very different views.
Just this week I’ve seen posts along the lines of “this boom won’t last”, “prices may have gone up but they can fall too”, “winter is coming” etc., many from the same people who previously forecasted a 10-30% fall in house prices when the market was locked down. But I believe, whichever view you have of how things will develop in the future, it doesn’t matter.
I’ve quoted Dale Norton, the founder of Romans, many times, because he nailed it when frequently saying to his team: “Every market makes a market, the thing is you have to know which market you’re in.”
Right now, estate agency is, according to many reports, experiencing a boom. Of course, the market will change at some point but no one knows when that will be, (albeit that doesn’t stop people making predictions, in particular those who got it wrong before, who seem to be almost willing a crash so they can say, “see, I told you so.”).
What everyone needs to do is take advantage of the current conditions, whatever they are, and keep a close eye on the key indicators for signs the market is changing.
The challenge in a boom market is twofold, few want things to change so become “wilfully blind” and many are too busy to take time to read the signs. The opposite is the case in a depressed market when the search for any improvement is near constant and the danger of “wishful thinking” and grabbing hope from any small uptick leading to poor decision making.
I suggest there are several key indicators that you should track every week:
- Rightmove traffic
- Rightmove leads
- Your website visits and average views
- Inbound phone calls
- Number of new listings on patch
- Number of sales/lets on patch
I’d also measure sentiment as well by having the team score, from 1-5 how active/motivated their buyers/renters are. Of course there are many other metrics but these form a good starting point.
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