The past two years have been wild for real estate. Experts believe 2023 will be a return to a new “normal”—given that the factors affecting the market today are different from anything we’ve seen before. Brokerages have transitioned from a two-year sales spree to a state of reflection (and evolution). The consensus among the biggest executives in real estate is that times are changing, and technology will be a key differentiator. What does that mean for you?
The Fed is still raising interest rates, though these increases are slowing and may even stop in 2023 if inflation shows signs of stabilizing or, better yet, returning to the 2% target. Even still, low housing inventory remains a persistent problem, one that will be compounded by high interest rates (high cost of borrowing to develop new housing) and a stubborn labor shortage in the construction industry.
All of this is actually good news for brokers. As Forbes has reported, Chief Economist at Realtor.com Danielle Hale expects home sales will be down 14.1% compared to 2022, but prices are expected to remain relatively high, albeit with an increase in days on market. Consumers are still going to buy and sell millions of homes this year, and many more will start looking for their first home, even if they aren’t ready to buy just yet.
The key will be ensuring your brokerage is there at the right moment to advise them and win them over as customers for life. Tech will play an increasingly important role in this process in 2023.
The undeniable importance of proptech
Constellation1 President Andrew Binkley was recently featured in a Real Estate News article that asked top proptech executives about the state of real estate tech. He noted that software solutions that help brokers and their teams reduce repetitive tasks (and human error) will help lower operating expenses, improve margins, and free up time to focus on value-added tasks, like strategizing, roadmapping, and building the human connection that is central to real estate.
The right tech will be critical for teams to improve and simplify operations, generate business, and create, “a homebuying experience with fewer clicks.” Wouldn’t that be great?
Let 2023 be the year you really get your tech stack in order.
Do you have old tools that are no longer suited to the way you do business? Did you acquire software that none of your agents use? Are you looking for ways to move more of your processes online and streamline them so you can work smarter, not harder?
Start 2023 off right with a free, no obligation audit of your front and back office tech by the experts at Constellation1, your source for real estate technology. We’ll take a holistic view of your business and your tech and recommend ways to make it better to set you up for greater success in the coming year and beyond.