When a crash happens in a NASCAR race, officials fly a yellow flag to indicate to other drivers that they must slow down and exercise caution until the wreckage is cleared. That’s where the country is in the race to beat the coronavirus pandemic after it collided head-on with the economy, real estate coach Brian Buffini said Thursday. He used the analogy during his session, “Business Strategies That Meet the Moment,” at the virtual 2020 REALTORS® Legislative Meetings.
Now the U.S. is in the clearing phase of the pandemic, Buffini said, and just as NASCAR’s green flag indicates the restart of the race, real estate pros should watch for signs that their clients are safe and ready to buy and sell homes. “Spring is going to hit in the summer,” Buffini said. “People who put off a move are now going to make that move.”
Buffini reiterated statistics released earlier by National Association of REALTORS® Chief Economist Lawrence Yun predicting that the industry will bounce back from the pandemic. Overall, there has been a 10% to 15% drop in transactions since March, but home prices have increased 1% to 2% since last year due to low inventory. Yun projects a strong return in the third quarter of 2020 and a 13% to 18% increase in sales in 2021. This, coupled with record low interest rates, will help drive the comeback, Buffini said.
“The economy is opening up around the country at different times and in different ways,” Buffini said. The various reopening plans make sense: For example, as of May 14, San Diego had 200 COVID-19-related deaths—a far cry from the more than 20,000 in New York. Buffini predicted that the economic impact of the pandemic would ultimately be incomparable to the Great Depression of the early 1930s. “It’s not a 10-year slide like it was in the Great Depression,” Buffini said. “Massive numbers of people are going to come back.”
Buffini advised practitioners to start preparing now for the real estate uptick this summer and fall. He also recommended three daily affirmations:
- Routines develop resiliency.
- Predictability leads to stability.
- Structure leads to steadiness.
Create routines, even if you continue to work from home. Those routines will create stability and structure. Buffini also suggested that brokers and agents revisit their business expenses and increase their outreach to costumers every day so that they’re in a good place before the third quarter. “Hit the gas when the market reopens fully over the next six months,” he said.
Buffini is offering his 5 Circle Fit Challenge to real estate pros for free to help get their business prepared. Learn more at Buffiniandcompany.com/BCBonus.
Source: “Buffini: Prepare Your Business for the ‘Green Flag“