Markets move in cycles and we happen to be enjoying a nice upswing in the NYC investment and residential sales markets that is being felt in transaction volume and also in pricing. Prices are testing the previous cycle’s highs and there have been many examples at the end of 2012 and in 2013 that have eclipsed the high water marks set in 2007. Development deals seem to be breaking records just about every other week right now. How long will this current upswing last? This is a question I am getting almost daily from agents and clients alike. No one has a crystal ball and while interest rates have ticked up in recent weeks, the national economy seems to continue to be on the mend pointing to several more years of our current cycle.
So you made some money in the last six months, we’re just about halfway through the year and you’ve got a good pipeline of business right now, things are looking pretty good for you. Many agents take this as their queue to shut it down for the summer months. Blow out of town on Thursday at lunch, take weeks off at a time, stumble back from the Hamptons on Monday afternoon, and why shouldn’t they, it’s the summer and their independent contractors after all, this is why they got into real estate in the first place.
Well this is the type of year you may want to hold off on your summer beach strategy. We all remember the doldrums of 2009 and 2010, and you can take it to the bank that this market cycle will end and we’ll have another downturn in a few years. Many of us are still making up for those lost years where we sat playing words with friends waiting for the phone to ring. This is the type of summer where you double down, not check out. The market will remain active for the next 75 days and I find clients tend to be more receptive to conversations in the summer because the weather is better which helps their mood and they are getting less calls because most of your competitors are at the beach. It also helps for apartment building owners that they don’t have to pay the oil bill this time of year!
For those of you who are fortunate to be new to the business and did not participate in the most recent downturn, please don’t make the mistake of thinking it’s always this easy. New agents more than anyone should stay focused during the coming months. This is the time to make business happen, senior agents in your office will be checked out a large part of the summer and you can make up some ground in terms of your skills and knowledge.
Set yourself some summer time goals and work toward achieving those projects you’ve been procrastinating on since New Years. This is the time to take advantage of a market and make hay. This is the time in a cycle where top producers are just starting to hit their stride and press their foot further down, not jump on the Jitney for some fun in the sun.