Golden Nuggets to Help You Crush These 2023 Real Estate Challenges

published by Kimberley DERUDDER

Back to Blog

It will be a rough year for real estate. With a fragile housing market, real estate challenges are mounting.

Things are weird out there, no doubt about it. Weird as they may be, many factors that caused the housing bubble of 2008 do not exist today.

However, if you worked as a real estate agent during the housing crisis, you’re a seasoned player.

If you’re new to the game, buckle up. The years ahead might be a wild ride.

The silver lining is that real estate is a cyclical market that will eventually recover. Until then, solutions to navigate the housing market issues do exist.

To come back winning on the other side, agents need to anticipate real estate challenges, adapt to the market, improve their real estate marketing game and never lose determination.

This article will explore some key real estate challenges for 2023. We’ll dive deep into some of the challenges you will likely face this new year. Many of the issues you’re facing with your real estate business can be fixed.

Let’s see how.

2023 Real Estate Forecast: What to Expect From The Market

2023 Real Estate Market Challenges illustration

Source

1. Mortgage rates are expected to fall in 2023

Currently, mortgage rates sit at 6.58% on a 30-year fixed mortgage, a slight decrease from a week ago.

And real estate predictions indicate that they’ll drop even further. According to Nadia Evagelou, senior economist and director of forecasting at the National Association of Realtors, we can expect mortgage rates to drop even further in 2023:

“If inflation continues to slow down–and this is what we expect for 2023–mortgage rates may stabilize below 6% in 2023.”

So, it’s likely that mortgage rates will edge down and stabilize. However, they will most likely not reach the 3% pre-inflation rate.

While the mortgage rate decline is good news, some experts say that activity in the housing market will stay cool and won’t recover completely until the first half of 2023.

2. Buyer Demand has dropped dramatically

As mortgage prices doubled last year and house prices went up the roof, buyer demand has dropped. The home buying frenzy of the pandemic days turned into an affordability crisis, and buyers and sellers evaporated from the market.

Actually, it’s the most severe housing affordability crisis in decades. That is not great news for real estate agents.

Will housing prices stabilize or go down in 2023? Well, opinions are mixed – most experts agree that it depends on your state.

Overall, a fragile economy doesn’t motivate people to invest in a home. On the other hand, lower demand means fewer bidding wars, more competition, and more time to negotiate and make a decision.

You’ll have to pull out all the big guns to navigate these real estate challenges. We’ll dive deep into some solutions to keep your business afloat and thrive during these times.

P.S.: It involves marketing, automation, and scaling content. Keep reading to find out how to update your real estate marketing strategy for 2023!

3. Sales Have Dropped Dramatically

According to real estate predictions, the slowdown in sales in the housing market that began in 2022 will continue well into next year.

Houses are staying on the market longer than usual. It takes around 40 weeks for a house to go under contract. This is the slowest rate registered since January 2021.

Surely, the stabilization and decline in mortgage rates will help tip the scale a bit. However, high prices, unemployment, economic uncertainty, and changing consumer habits will still affect the prosperity of the real estate industry.

5. Shifting Consumer Behaviors

Any economic shift also brings about shifting consumer behavior – and this one is no exception.

Customers are tightening their budgets and postponing larger purchases. And only 21% of people consider this an excellent time to buy a house, according to the National Housing Survey.

And with mortgage prices still high and an uncertain economic future, this is a real estate challenge bound to continue.

6. Construction Good Prices, Skilled Labor Shortage, and Materials Shortages

Supply chain issues driven by the pandemic and geopolitical issues led to materials such as cement or asphalt shortages. Steel and lumber have also been in short supply.

All these issues led to higher costs for construction materials. To top it all off, there’s a skilled labor shortage. These factors proved to be a disruptive force for the real estate industry.

On a more positive note, material prices seem to improve as inflation cools. Despite this, these factors are likely to have an impact on the real estate sector in 2023.

7. Inflation and Interest Rates

Inflation is at a high-time peak, both in the US and Europe. In October, inflation hit a record of 11.5% in Europe. In the US, inflation rates hit 7.7% in October.

However, it looks like inflation is slowly reversing course. Whether or not we’re looking at an economic recession, it’s hard to tell, according to economic predictions.

To contain inflation, the Federal Reserve has increased interest rates. In fact, it was the largest spike in interest rates since 1994. Forecasts indicate that the Federal Reserve will hold off on interest rate increases – but interest rates will most likely stagnate and almost not reverse to pre-inflation days.

Well, there you have it: the most impactful real estate challenges of 2023.

10 Real Estate Marketing Challenges For 2023 & Tips to Overcome Them

10 Real Estate Marketing Challenges For 2023

Source

These real estate predictions and trends show that buyers, sellers, and agents are going through some rough times.

Your job as a real estate professional will be harder in 2023 because of the industry’s challenges. The stress it puts on your real estate business is undeniable.

However, there’s always a market. And if you use all the tricks in your pocket to attract leads, nurture relationships, and market your business – your business will thank you.

Here are some real estate marketing challenges you might face and how to overcome them.

1. Real Estate Digital Marketing Is Now More Important Than Ever

Realtors discussing the real estate market

Source

Most homebuyers begin their home search online, and they have come to expect a top-notch digital experience. So, if you want to stay ahead of the competition, you better step up your digital marketing game.

Here’s how to do that.

Knock their socks off with an optimized and attention-grabbing real estate website. Include video tours and client testimonials on your website to improve your SEO game and generate more engagement! Buyers expect more virtual and video tours.

Next up, don’t let people find you! Meet homebuyers and sellers where they are – on social media! Real estate marketing is no longer just about listing your properties on websites like Zillow or MLS. Sure, that’s mandatory. But social media posts, such as just listed posts, educational posts, or social proof posts, will get you a long way.

Video content will also come in stronger in 2023, so include it in your social media strategy for this year. You’ll be surprised at how engagement rates spike with video content.

Depending on your audience, you might consider expanding to other social media platforms. For instance, if the audience you’re targeting likes spending their time on TikTok, you might also consider posting regular content there. Some real estate social media post ideas would be a day in the life of a realtor posts, tips and tricks for buyers and sellers, or property tours.

The key is consistently promoting your listings and building an online presence that screams trust and authority in the market. In this shaky housing market climate, expertise and trustworthiness will be critical factors in choosing a real estate agent!

2. Cybercrime Is On The Rise

Realtors facing cybercrime

Source

Cybercrime is rising, and the real estate industry is not immune to attacks.

Hackers and cybercriminals are becoming increasingly sophisticated and targeting businesses of all types, including real estate companies.

To protect your business and brand from cyberattacks, it’s essential to have a strategy in place to secure your marketing and brand assets.

Outsmart hackers and use a secure digital asset management (DAM) system. Let me tell you; it’s a game-changer. A DAM system will secure all your marketing and brand assets – documents, brand logos, social media posts, or listing presentations. All your assets will be stored in a single location in the cloud.

This smooths out collaboration between you and team members or collaborators. Plus, it eliminates the headaches of broken paths!

Secure your digital files and create marketing collateral at scale with the click of a button. Try Xara Cloud now!

3. Lack of Time to Invest in Social Media Marketing

Realtors investing in social media marketing

Source

Many real estate agents find themselves strapped for time regarding social media marketing. It’s no wonder.

A multi-channel social media approach and constant posting are necessary if you want to attract potential buyers and close more deals.

However, this is not a one-person job. It’s an AI job. Automating your marketing workflow will ensure the creation of brand-consistent content at scale!

Investing in a visual communication platform will allow you to focus on more strategic and creative work. This includes brainstorming real estate social media post ideas, growing your brand’s reputation, and writing killer content. Xara Cloud is the solution you’ve been searching for! Our tool allows real estate professionals like you to:

  • Sit back and relax with automated scheduled posts.
  • Create content at scale using the intuitive editor and pre-made real estate templates.
  • Bring your brand in front of your audience with a simple click!
  • Collaborate creatively with the feedback and commenting features!
  • Keep all your assets in one DAM with our state-of-the-art security measures.
  • Unlock the power of data-driven marketing – Say hello to performance-boosting insights with our analytics feature.

4. Failure to Grow Your Real Estate Brand

So many real estate agents struggle to build their brands. Real estate is competitive enough already, and building a brand is no easy feat.

However, if you want deals rolling in – real estate branding is a must.

Want to build a real estate brand that stands out? Scale your content and keep your marketing materials consistent. This is the path toward brand recognition. That’s how big brands like Nike do it.

Oh, and one crucial element: don’t be like the rest. Nowadays, everyone uses the same tone and messaging to express their brand’s identity. That’s no way to stand out. Market automation will allow you to focus on what matters: building a unique real estate brand with which people want to be in contact!

Think of your brand as a person. Detail their features, personality traits, likes, and dislikes in as much detail as possible and work from there. A bit of effort in this direction will transform the reputation of your real estate business.

5. Low Listing Inventory

Real Estate Agent Low Listing Inventory

Source

Another all-too-common real estate challenge in 2023 is the low-inventory market. How do you grow your listing base in this climate?

Well, there are a few things you could do.

  • For one, expand your sphere of influence. The wider your reach, the more chances you get of attracting leads. Social media channels are the key to expanding.
  • Real estate is a business of contacts. So networking is key. To grow your network, use social media, engage with your local community and attend networking events.
  • It’s a crisis of experts out there. In any field. So – one way to attract more listings is by becoming a thought leader in real estate. Show your audience that you are up to date with housing market trends and have the skills and knowledge to successfully steer the home buying and selling process.

This will get you a long way, especially in these turbulent times when the housing market is so fragile.

6. Failure to Leverage Referrals

Client referrals are the bread and butter of the growth of your real estate business. Around 80% of real estate transactions come from referrals. So – while cold leads are important, referrals are critical.

Most people prefer to collaborate with realtors referred by friends and family. It makes sense. After all, you’re helping people reach their homeownership dream.

But if you get more real estate referrals, you have to ask. Here’s what you can do to upgrade your referral game:

7. Real Estate Recruiting Challenges

Realtors recruiting agents

Source

If you’ve been hiring recently, you know this is just another of those serious real estate challenges that you face.

The talent crisis is showing its teeth in most fields, and the real estate industry is not exempt from it.

But there’s a solution: polishing your brand’s reputation and online presence. This is a surefire way to attract top talent to your firm.

A strong brand reputation will help you stand out from the pack and attract candidates searching for a stable and reputable real estate company. A positive brand image and proof of expertise will go a long way in building trust and credibility in the market – both for clients and future employees.

Besides building a solid brand reputation, a robust online presence also counts. This will ensure that you are top of a candidate’s mind.

And to do that, be sure to expand your activity on social media channels, such as LinkedIn, Instagram, Facebook, and even TikTok (if you’re looking to attract younger candidates).

You can showcase your brand’s values, achievements, and culture through your online activity. In turn, this will grab the attention of candidates that feel like your company aligns with their values.

8. Failure to Track the Performance of Marketing Efforts

Agents facing real estate challenges

Source

Many real estate agents don’t track the performance of their real estate marketing materials. That’s like shooting in the blank.

And with the real estate market’s competition and volatility, there is room for speculation.

You have to be precise.

If only there were a tool to help you track performance metrics. Wait, there is! It’s called a Sales Enablement Tool. Invest in one of these, and you’ll be able you track your KPIs and insights for your sales and marketing collateral.

If you’re on a budget but want to step up your real estate marketing game, Xara Cloud is the perfect tool! With Xara Cloud, you can track your KPIs in a jiffy.

9. Lack of Internal Resources to Create Marketing Collateral

Real Estate MLS Templates from Xara Cloud

Source

If you’re strapped for time or money, your marketing strategy doesn’t have to suffer.

Yes.

Keeping up with marketing demands is getting increasingly difficult, especially without an entire team of designers, SEO experts, and content creators.

The good news is that you can automate your workflow with real estate marketing tools. This way, you can overcome these real estate marketing challenges and come out on top.

Marketing automation is a game-changer, allowing you to create branded content at scale without breaking the bank.

Using design templates, automated branding, a centralized data source, and collaboration tools, you can create effective marketing materials for your real estate business that nurture client relationships and increase listings.

And in a real estate market with limited listings, you’ll need all the help you can get. Content creation tools and marketing automation will help you maximize resources without needing a large team.

10. No Database for Leads and Referrals

Agents facing real estate challenges

Source

Many agents don’t have a clear database of their leads and referrals. And you don’t want your leads and customers to slip through the cracks.

This results in missed opportunities and lost deals. In this housing market, you want to be able to identify and target the right leads quickly.

And the best way to do it is with a real estate marketing tool. A customer relationship management tool can help you gather all your content and automate real estate posts and marketing campaigns.

Xara Cloud: The Key to Overcoming Real Estate Challenges and Emerging as a Top Agent

As we’ve seen, the game’s name in 2023 is volatility. The real estate market is a challenging landscape to navigate.

However, don’t let uncertainty get a hold of you. You can emerge as a top agent with the right tools, strategies, and mindset. Even in these trying times.

And Xara Cloud is a powerhouse tool for any real estate agent looking to emerge on top.

With Xara Cloud’s visual communication platform, you can create killer real estate content that closes deals. Even without design experience, you can create professional-grade marketing materials with our templates, automated branding features, and easy-to-use editor.

Customize your materials and meet your audience where they are. Try Xara Cloud now!

Upgrade your Real Estate Marketing for free!

WestGate Real Estate Social Proof

Would you like to try Xara Cloud and start creating beautiful real estate marketing content? It is free to sign up—no credit card required.

Try it now

Get started for free

14 -day free trial | No credit card needed

You will be on your way to creating branded documents and designs that can transform your business

Sign up now