The real estate market has been in a state of flux over the last few years, with prices fluctuating wildly and many industry leaders expressing uncertainty about what the future holds.
According to a recent article published in Forbes, search results in the U.S. for “real estate market crash” increased by 284% in September 2022, as revealed by Google Trends.
And while this may seem like an anomaly at first glance, it’s actually just one example of something that has been happening for years now. More people than ever are turning to the internet for answers about what’s going wrong in the real estate market and how it will affect them personally.
Whether your business is directly involved in real estate or not, it’s important to understand how this impacts your industry and to prepare accordingly. To help you navigate this uncertain time and plan for what comes next, we’ve put together this guide on what industry leaders should focus on during these uncertain times.
Embrace Property Management Software
The real estate market has been in a state of uncertainty for several years now. The industry is still in a slump, and the number of buyers in the market has not yet reached an equilibrium. As a result, it’s not surprising that many real-estate owners are hesitant to invest in property management software.
However, embracing property management software will help industry leaders gain a competitive edge and increase their profits during these uncertain times. Property management software will become increasingly important to these leaders as they strive to improve their operations and deliver better customer experiences.
Moreover, the market for property management software is expected to grow steadily over the next few years, touching $37.25 billion by 2029 from 19.33 billion in 2022, according to Fortune Business Insights. Those who embrace this technology today will find themselves at an advantage when it comes time to compete with other real-estate organizations for customers and investors alike.
Property management software can help you keep track of your properties in an easy way that saves time, streamlines processes, and improves efficiency. It also allows you to analyze data from past transactions and make smart decisions about future ones.
Install Effective Energy Management Systems
During uncertain times, real-estate industry leaders are often encouraged to make investments that will help their businesses grow. But with so many options out there, it can be tough to know what to prioritize.
One way to mitigate risk is by installing effective energy management systems. These systems help real-estate owners reduce costs, save time and resources, and even improve the quality of their products or services.
According to the World Economic Forum, in February 2022, 40% of global energy consumption is taken up by buildings. Thus, effective energy management systems are important for retailers, helping them reduce their carbon footprint and lower their operational costs by providing them with an accurate picture of their energy usage.
However, the right energy systems distributor can also be instrumental in helping you make smart long-term decisions about which technologies make sense for them. When you choose a distributor who understands your needs and goals, you’re more likely to receive advice that will actually help your business grow.
Focus On Creating Sustainable Buildings
The real estate market is in the doldrums, and it’s not looking like things are going to improve anytime soon. In order to overcome this crisis, retailers should focus on creating sustainable buildings.
As of 2020, 28 major cities, including New York City and Washington, DC, in the US, and Cape Town and Johannesburg in South Africa, constituting above 125 million people, have made commitments towards achieving net-zero building operations by 2050. These commitments have been made due to increasing awareness of the need for sustainability across all industries.
Hence, retailers should also move towards sustainability by focusing on creating sustainable buildings that are capable of reducing their carbon footprint. This will also help them decrease waste production over time through recycled materials usage as well as green technologies implementation such as solar panels.
By investing in sustainable buildings, retailers can ensure that their business stays financially sound even if there are any fluctuations in the real estate market or other factors that affect their business adversely.
Adopt New Approaches to Pricing and Positioning Homes
According to recent research from Redfin, there was a 28% dip in sales of pending homes over the year, the largest decline since May 2020. This makes it important for retailers to adopt new approaches to pricing and positioning homes in this market.
The traditional method of pricing homes is a “competition-based” approach, which means that sellers look at what other homes are selling for in their area and try to price their homes slightly lower than those listings. This approach is not always effective, especially when there are multiple offers on a property.
When it comes to pricing and positioning homes, here are four tips retailers should keep in mind:
• Be clear on your brand’s mission statement
• Use technology to create an emotional connection with customers
• Stay focused on the customer experience, not just on transactions
• Create a unique value proposition
As the real estate market continues to be in the doldrums, industry leaders should focus on improving their marketing strategies, getting the best value for their properties, and finding new ways to drive traffic to their sites. These are just a few of the tips that we’ve outlined here, but there are many more ways to improve your business when you’re dealing with a struggling economy.