Well, it’s that time of year where we look back on our accomplishments and also look toward the future. As president of Constellation1, a big part of my role is defining our strategy for the coming year and beyond, then working to put that strategy into action with my team.
Constellation1 doesn’t exist in a vacuum: it’s a leader in one of the fastest-changing industries there is. To formulate a strategy that will get us to where we need to go, we need to operate under a certain set of assumptions and predictions for the coming year. And so, in this post, I’d like to share my outlook for the coming year, both for the real estate industry overall and for my team at Constellation1.
My 2024 real estate industry predictions
Here’s what I think is in store for the real estate industry as a whole in the coming year.
A little more housing market stability
The last few years have been a rollercoaster, to say the least.
The business press is reporting that most analysts believe the Fed’s interest rate hikes are probably on pause for the time being. This is welcome news for all real estate industry stakeholders because it allows consumers to get a little more comfortable with the higher interest rate environment we’re currently in, which has meant more expensive mortgages and fewer leads.
Still, I don’t think we’re going to return to the boom years of the past. With interest rates steady and even falling slightly, demand will increase but supply will remain low. That means robust lead nurturing strategies and a versatile real estate CRM will be crucial for brokerages to succeed.
Major real estate regulation and policy changes
The landmark ruling in the Burnett v. NAR et al case was a shockwave for the real estate industry, and the Department of Justice is looking closely at whether current real estate agent commission practices harm competition or violate antitrust law. This could lead to the biggest regulatory changes the industry has seen in decades.
At the very least, brokers, agents, and consumers are going to be discussing commissions a lot more. In the short and medium term, this could lead to lower commissions, especially for buyer’s agents, the complete unbundling of commissions, which has been the norm for a long time, and smaller sales teams. Brokerages will be under pressure to recruit and retain the absolute best agents while also providing tools that maximize efficiency and productivity, helping these agents do their jobs better—and do more with less.
Cost optimization
Brokers are no strangers to shrinking margins, which have been under even greater strain due to high inflation and soaring costs. Changes in commission income will only increase the pressure to optimize expenses so they can get more bang for their buck. The same is true for franchises, MLSs, and associations. The key will be to find innovative ways to reduce operating costs without decreasing productivity or compromising on customer experience.
Technology in service of the industry
Technology is a key tool for optimizing costs, but only when it works to solve real problems. As Jodi Dines, EVP of Real Estate One put it this year, we tend to follow the herd in real estate, for better or for worse. There’s a lot of excitement about generative artificial intelligence and how it will change our industry and the technology we use. And I’m excited, too, provided that we integrate it into our tech because it actually helps consumers, not because it’s a shiny new toy. We need to take a 30,000-foot view, look at new technology like AI and ask, “how is this going to add value to our customers and to consumers?” so that we can focus on value and integrate innovation in meaningful ways, not just chase trends.
What’s ahead for Constellation1, your source for real estate technology
The real estate industry is always changing, and we’re in an exciting place to capitalize on these changes and seize the opportunities in front of us.
Leveraging our strong product and service portfolio
Our current offering is really primed for this moment. We have a core of premium, pillar products that are perfect for meeting the needs of our customers and that add value for brokers and their teams, franchises, MLSs and associations, and ultimately consumers.
The best real estate websites
Our Constellation1 Websites offering for brokerages and our MLS portal offering are among the strongest on the market today, and Constellation1 CRM has been recognized as one of the top 5 lead routing and management solutions available, most recently in the 2023 Tech 200 List from T3 Sixty.
Given the additional effort everyone is needing to put in to find good leads these days, often in creative places, I can’t underscore enough how important a powerful CRM is going to be for brokers to be successful in 2024, and our website + CRM pairing truly has everything teams need to generate, capture, and nurture leads.
Opportunities in real estate data services
Constellation1 is a center of data excellence, and we’ve amassed cumulative decades’ worth of expertise in this space. Data has always been important in real estate, and given the rise of AI in real estate and the need for quality data, we are uniquely positioned to seize new opportunities in 2024 and the years to follow.
Real estate brokerages in particular are looking for more ways to streamline, and we can help them leverage our experience and expertise to access industry data, public data, and even their own data more easily and efficiently.
Beyond brokerages and MLSs, we’ve seen a lot of interest recently in what our data offering can do for even more players across the real estate landscape, and we’re looking forward to exploring where else we can add value in the coming year.
Boosting productivity and efficiency with technology
Given the industry trends I talked about above, it’s more important than ever to help real estate agents maximize their efforts. We help brokerages and their agents, franchises, MLSs, and associations automate, streamline, and boost productivity through technology, and we believe in letting you bring your own tools and providing solutions for life, so you can stop having to revamp your tech stack every three to five years.
Our technology helps teams work together better, streamline complex or time-consuming tasks like commissions accounting or social media marketing, and collaborate more effectively in our increasingly connected world.
Continuing to invest in our strengths
We’re committed to investing in our products and services so that they don’t just meet our customers’ needs today, they evolve along with our customers’ strategies.
In the coming year, our customers can expect to see:
- Enriched feature sets to be able to do even more with existing products
- Enhanced automation to be able to work even more efficiently
- Better onboarding and training for increased adoption
- More seamless data integration beyond traditional property listing data
A bright future for real estate technology
Of course, I don’t have a crystal ball, but I’m confident about the course we’re charting for 2024 and beyond. There’s never a dull moment in this space, and I’m excited to be president of such a dynamic company at such an exciting time. 2023 may be drawing to a close, but I’m looking forward to the sun rising in 2024 even bigger and brighter than ever. Stay tuned!
Learn more about Constellation1
Constellation1 is a long-term partner to the real estate industry and provides front office, back office, and data services to real estate brokerages, franchises, MLSs, and associations across North America. To learn more about Constellation1, get in touch with us today.
