We hold these two truths at the same time (to be self-evident) despite being diametrically opposed.
Oh boy, what have I gotten myself into? How am I going to make good on the opening line especially with a gratuitous Declaration of Independence reference? I guess if it is truly gratuitous, I could remove the reference and move on, but where would be the fun in that?
I am declaring my independence from a herd mentality to conduct business as usual. An episode of The Daily brings the rent vs buy debate to the mainstream. The Daily for those that don’t know is a New York Times podcast with over 1 million listeners a day. The conclusion drawn in this episode: unless you have a significant downpayment saved and plan to stay somewhere for 10 years or more, you should not buy a home and expect it to be a wise financial decision. The episode goes on to say that there are a multitude of other reasons to buy a home: generational wealth, community, your own customizable space, and tax advantages to name a few. So, as Realtors can we hold both of those ideas as truths and still have reverence for our profession?
My partner at Be Realty Residential, Dan Hellweg, and I were reflecting on 2023 and planning for 2024. We’ve been reading common books to develop a company-wide lexicon. One of those books presents the importance of the way you answer the questions, “How is the market?” or “How is your business?” For example, if you make a blanket statement that there is nothing on the market, you have already lost the prospective client. And yet, as we all know, the numbers say that transaction volume is as low as it has been in quite some time. Both of these statements are true and as adults and professionals we can give ourselves some grace if we did not have the years we had hoped for, while also striving for ways to improve our conversations with clients and work to be facilitators of the transactions that are still occurring. There is a market out there, it is our job to find it and help our clients navigate it.
As a new parent, another diametrically opposed two truths we all likely hold has become even more clear. And I include this example because I think it is universal so it will serve to underscore this point well. Our parents, we all have them, are human. They have filled us with all of our good traits and filled us with all of our bad ones. Take my mother for example, she worked hard to end the systemic pattern of addiction on her side of the family so that it did not pass to my sister and me. That work left her depleted at times and unavailable to me as a young child for a present connection. I am allowed to revere her and recognize the holes her occasional lack of presence caused in me.
I think success in 2024 and going forward will come down to holding these four truths simultaneously and finding a path forward.
Market and economic conditions create an environment where it is possible that home ownership may not be everyone’s best course of action thereby limiting transaction volume.
While unlikely to force a change in the way business is conducted in 2024, the Sitzer/Burnett case and the myriad of other cases filed may eventually force statutory changes at a federal or state level.
Commercial real estate transactions could remain relatively slow across the industry as a whole while the high cost of money limits opportunities for new and old businesses to borrow and therefore expand.
Our purpose as knowledgeable real estate professionals who need to have real estate conversations with people in order to form relationships that lead to us assisting with their real estate needs does not fundamentally change.
To conclude, will transaction volume remain low relative to years past? Yes. Can one still survive and thrive in that environment? Yes. Will that require a penultimate shift in how business is conducted? Not necessarily. Should it? I think that we should be having that conversation with each other and with our colleagues so that we adhere to our code of ethics and provide the best service to our clients while finding a way for our business (individual and collective) to thrive.
