When Erik Kelly was a guest on our show back in 2019, the market couldn’t have been more different to what it became in 2020. It was before Covid, before the super low interest rates, and the fierce frenzy of an extreme seller’s market and multiple offers.
2019 was a more normalized and balanced market, and we’re returning to that again, but it doesn’t feel that way after the madness of 2020 and 2021. That’s why some people label this market as “bad”. In reality, the market doesn’t need to be painted in such a negative light. The landscape of the market might be dramatically different to what we saw in recent years but that hasn’t eliminated the motivation or the opportunity.
Erik Kelly returns to give his take on the twists and turns the market has taken to get here, why it serves skilled agents so well and he also talks about the Ahwatukee resurgence.
You’ll also learn;
- How market conditions will never eliminate motivation
- The problem with most information about the market right now
- What people love about Ahwatukee
Key Points
This isn’t a bad market, it’s a balanced one
The market changed considerably from 2019 to 2020 and then changed again in 2022. We went from the more balanced pre-covid market to the fierce frenzy of the 2020 and 2021 market – which was driven by an imbalance between households started and new constructions, crazy low interest rates, and migration patterns. Now in 2023, we’re getting back to something more balanced, but that doesn’t necessarily need to have such a negative connotation attached to it. The landscape of the market might be dramatically different, but it’s not a bad market. After the crash in 2008, inventory was quadruple what it is right now, so we’re by no means in a bad market. Ultimately, no market conditions will ever eliminate the motivation of someone who needs to buy – it might slow down the urgency but not remove it completely.
Let factual data inform your perception of the market
In a market like this, perception becomes reality very easily. Our views on the market are heavily impacted by our sources of information, from the people we’re around or the media we read, watch and listen to. It’s really important that we’re consuming reliable information about what’s going on. Look out for and listen to factual data – not your neighbor, an algorithm or some fear-mongering clickbait news headline.
We’re in a skills-based market now
It’s always an agent’s job to advocate for their clients at the highest level. The challenge is in a fiercely frenzied market with multiple offers, it’s easy for agents to get away with not doing that part of their job well. You could still sell a home without building rapport, consulting, aligning priorities and communicating effectively. We’re now in a skills based market where the agents who will survive and thrive are the ones with experience and knowledge about navigating what’s going on.
The Ahwatukee resurgence
Ahwatukee is “like a small town that’s part of a big city”, and right now it’s experiencing a resurgence. The community really started in the late seventies to early eighties, and the median age of a home is 29 years so there’s a lot of opportunity for renovations and giving the homes a facelift. Additionally, there’s a proposal to build 1400 residential units so there’s a lot of exciting developments coming to the area.
Guest Bio
Erik Kelly is a real estate consultant, and host of Live Your Legacy. He is honored to lead a talented group of Real Estate Professionals who are committed to creating an optimal client experience. Erik and his team leverage leading edge technology and superior standards to ensure that they can provide personalized service, strategic solutions and deliver remarkable results for their clients.
Listen to the podcast on your platform of choice or call him on 480-229-6699.
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