18/01/2023
2023 Property Market Crash🏚📉
Now, this is going to be a hot take for a lot of you but...
The annual UK house sale transaction volume average since 2010 has been 1,100,000. 2021 was 32% higher than that. And so what do you think might happen this year – a year without the stamp-duty blue pill, with higher interest rates, a war, and resulting economic uncertainty?
Our money is on a decrease of at least 375,000 homes sold in 2023 than the year before.
If you grab a calculator you’ll therefore see that each UK estate agency branch will sell about 20 homes less than they did in 2022. On average, that’s a gap in revenue of roughly £80,000 for each.
It’s unlike us to be pessimistic we're nearly always the token optimist in industry discussions and when talking house prices, but the maths here is pretty clear and it suggests that you need to prepare for a leaner period ahead.
The question is, what will you do about that? Now that I have helped prepare you for the reality of Estate Agency Economics 2023, what action will you take to mitigate a tougher time?
The ‘manager types’ will think about just trying to cut overheads and the ‘entrepreneur types’ will consider stepping up marketing and prospecting – it’s the age-old conundrum of whether to cut or whether to invest in growing market share. And the ‘innovators’ will believe that the efficiency of digitalisation is the answer to nullifying the effects of fewer buyers and sellers.
But most of you, the ‘vast majority’, will do precisely nothing.
Which are you going to be?
