2019 was a wild ride especially for those in the real estate industry, which was somewhat disruptive and challenging.
Property sales have plummeted to all-time record lows, particularly with sales volumes and auction clearance rates last year. In order to spur and sustain spending and growth, the Federal Reserve dropped the cash rate and caused bank rates to drop to unprecedented low levels never before experienced.
The Royal Commission ruled to limit credit offerings from banks and lending institutions which caused the Australian Prudential Regulation Authority (APRA) to place the property market on hold and made it more challenging to act on recovery efforts.
Job growth and unemployment rates remained steady throughout the year and showed no signs whether it could cause any change anytime soon. This meant that if someone is unemployed, they could not expect to get approved for a bank loan to purchase a property.
The second half of last year provided a semblance of hope as the industry showed signs of picking up, and sales volumes began to rise.
Embracing the changes
Real estate agents need to understand that the industry will always have its ups and downs, but one’s thing’s for sure, the industry will always be able to pick up and adapt to market forces that affect its dynamics.
The industry is definitely going through an emerging evolution of new business models through modern and disruptive practices that are aimed at innovating and improving the industry. The industry is going through a transition process that challenges the traditional norms of the industry.
As the industry is being ushered into a new era, key players have been known to demand better access, ease of processes, and affordability as the factors that are introduced by new technologies and are those taking the lead in this emerging growth dynamic in the real estate industry.
What is required to be able to get through in 2020 is for the industry to embrace the changes that are taking place? A new level of industry leadership is required to steer all the stakeholders into the changing economic and market landscape.
Focus is still needed to incorporate the human element in the real estate process and one that will change the dynamics from transactional into a transformational approach in dealing with client services and strengthening revenue streams.
With all the changes and market evolution taking place, the demand for a new level of leadership is important to address the needs of the changing times. It may seem daunting and challenging to go through the transition process, but it will soon pave the way for a better future for the real estate industry.