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Welcome back for another episode of re:Think Real Estate. On today’s episode, we reach back to our second episode to review our predictions for the real estate market in 2018. We discuss where we were really right and where we were less right!
We also talk about our predictions for the 2019 real estate market and what we believe will happen this year. This real estate podcast is about helping brokers and agents think about how their business is run. We discuss what is working for us in our business and how our businesses are growing.
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Audio length 34:58
RTRE 45-2019 Predictions for the Real Estate Market[music] [Chris] Welcome to re:Think Real Estate, your educational and hopefully entertaining source for all things real estate, business, news and tech. [Christian]: I am Christian Harris in Seattle, Washington. [Nathan]: Hi, I am Nathan White in Columbus, Ohio. [Chris]: And I am Chris Lazarus in Atlanta, Georgia. Thanks for tuning in. [music] [Chris]: Hey everybody and welcome back to re:Think Real Estate. We’re here early in 2019. I am here with Christian and Nate. Guys how are we doing? [Christian]: Hi, how is it going? [Chris]: Nate is silent. [Christian]: No Nate. [Nathan]: Good good. [Chris]: Oh he’s with us. He joins us today. Last time…so last week we talked a little bit about…shoot what did we talk about last week? [laughter] Did we like…So last week we talked about… [Nathan]: Do you remember? [Christian]: We just recorded it. [Chris]: Was it in the notes? [laughter]. Smart. Thinking smart. So last week we talked about what is it gonna take to sell a home in 2019. We used the “Think Smart” acronym and we mentioned that we were gonna talk about our second episode from when we launched the podcast which was our predictions for 2018. So we wanted to talk and see what came true and what didn’t. So Nate we’re gonna start with you. First off let’s hear what you had to say in episode 2 of last year. [Nathan]: I am scared.
“That’s the market is gonna continue to grow. Unemployment is at an all-time low. Job creation is growing gradually. Braeden wrote about that. And so I don’t think we’re gonna see the housing market slide. I think we’re gonna see it grow very fast.
In our market here in Columbus we had an all-time low in inventory. The new builts are…you can’t build them fast enough so it’s…it’s gonna continue to grow. The challenge I think for real estate agents is how do you get your slice of the pie and how do you do that?
The other thing I think we’re gonna see is more influences upon technology or AI, but we have do we have a balance of what we do as individuals and a balance of what that AI does for us as well.”[Chris]: Alright so Nate a lot of it was…for you was that it was gonna be continued market growth, that it was gonna be pretty…Value was gonna be of great importance. Providing that value for our clients and really working on improving the communication. Tech and AI, you…having that balance to assist. What do you think? [Nathan]: I think we’re still there some. I think it’s gonna evolve even more in the sense of I think there was a lot of playing if you would with tech and we saw like you said when we were talking. Kelly came up with KW and several other things. I think that what we’re gonna see though is from all this tech people are gonna realize again we actually provide the most value.
Again I go back to how do we blend the 2. We saw a lot of companies come in a fury all trying to get their slice of the pie and 6 months later they were an afterthought, right. So I think that we realize there’s a space for it right and that’s good and I am OK with that but there’s still a very large space for us and what we do which is awesome.
I don’t think we’re gonna have that…What’s that Will Smith movie. IRobot or whatever you know where everything is that way. Right so…[laughter] but there should be a large…I don’t want to say “curtailing” maybe is the word. But we’re gonna see some of that dial back I think a bit. And you know you are already hearing depending of what circle you run in, about you know agent value and what agents provide. I find it comical. I am not picking on Kelly, but you all are late to the party. Now it’s all about “OK great we had that”. Now it’s going back to being agent centric almost right. So…Interesting that you know if you’re talking about tech now than you’re a little late. So…[Christian]: Sure. [Nathan]: So I think you need to be focused on what you do and what you provide to your clients. [Chris]: So I think you are right. You know last year you said that there was gonna be a balance between using technology and the agent providing value. [Nathan]: And we’re finding that out. [Chris]: And I think that…I think that that’s how the year worked out. There was…I think you had all these big announcements about tech but then kind of half way through the year I think it got fueled by that whole Facebook thing…is that when the huge data breach happened. I think that a lot of people started putting more focus on the relationship, on how they’re interacting with the people. [Christian]: And I would say I think on the stuff that plays for tech…but I think kind of the sexiness of it is wearing off a little bit in the sense of I think it’s a little bit of a tech and automation fatigue, you know, that the trends is going back to the basics of relationships and serving your clients. Whether that’s tech of whether that’s man also. [Chris]: Yeah I think people are finally realizing that they’re not gonna push a button and that everything is gonna be done for them. Like you could push a button and they can send an email campaign and that helps but you gotta pick up the phone. You gotta talk to people and you gotta have that one to one connection so…Christian…Nate well done I think you were spot on. I think that your predictions for 2018 came true. What do you think Christian, you think he was right? [Christian]: Unfortunately, I think he was. No I think it’s good. Yeah I think it was pretty spot on. [Chris]: Yeah you’re guru level there Nate. Watch out don’t let it happen again, you might think you’re smart. [laughter] [Nathan]: You know I am gonna keep fooling people and sooner or later they’re gonna be like “You’re not fooling me anymore”. [laughter] [Chris]: Well done. Alright Christian let’s hear what you had to say last year. [Christian]: “I think there’s gonna continue to be that tension between what you’d call the discount model tech enabled and the traditional model. So as Nate said I think there’s gonna be increased need for individual agents and brokerages to define themselves and provide value outside of just…just do real estate and “I am gonna give you a good experience””. [Chris]: Alright so you were talking a lot about the push back against the traditional real estate model. What do you think? You think that came through? [Christian]: I’d say for the most part. You know I mean the…the…what we’re seen with the EXP you know virtual brokerage I mean they’re…I think you’re saying they like acquired or gathered 16.000 new agents last year. [Chris]: Yeah they’re 16k. [Christian]: You know Compass, you know, they’re kind of a hybrid as far as, you know, they’re not franchised but they’re definitely pushing the tech in the marketing and doing things differently. They’re, you know, growing like…like wild fire, wild flowers. I don’t know. They’re growing, they’re doing good. [Chris]: You’re out in the west coast you should know what a wild fire is. [Christian]: Yeah that’s true [laughter]. And you know I think we’ve seen, you know, big…the big growth in the indie brokerage you know scene. The rise of indie brokerages as far as people wanting to get a better consumer experience and a company and agents that are invested in the community and you know just totally gets a…you know what’s kind of in the local marketing and stuff.
And you know to see Zillow you know we’re getting into their iByer thing and you know doubling down in the consumer. Advocating for consumers and that’s their main focus and you know there’s been a lot of hub hub, you know, a bunch of murmuring in the real estate space with you know “Is Zillow alienating their premiere agents or is what they’re doing working of bettering stuff?”.
I mean they’re willing to and have enough of market share. You know they’re a brokerage, you know. they make clients as agents but they’re willing to mix it up in order to continue pushing the bounds of what the consumer wants. What’s best for them as opposed to the traditional franchise which isn’t interested in that at all. They’re interested in maintaining a status quo. And I think you’re seeing they are losing market share because of it.[Chris]: Yeah. Yeah I agree with you there. We saw pretty much a lot of franchise agents move to the EXP model because you know they’re gonna play this…spend that whole split. You know they don’t want to play for the overhead. They like that whole MLM aspect of it where they can get a percentage of it back.
Now another thing that you mentioned…So I think you were right on point there. Another thing that you mentioned at the start of last year were that efficiencies with technology were gonna increase the tension on commission rates. Things that we can charge as a broker. Do you think that played out? What do you think?[Christian]: You know I don’t have any numbers so you know I am not really sure but I mean I am increase hearing more about you know 100%, you know, commission models and that sort of thing. Which I mean those have been around for a while but they seem to be getting more and more popular as agents are looking to cut their costs and not have a big split.
Yeah I don’t what the trend of that is gonna be because, you know, even in my book there is a give and take. If you’re getting 100% commission split you’re probably not getting a lot of support. And if you have a high split theoretically you’d be getting more support and have a physical brokerage.[Chris]: Theoretically. [Christian]: And access to your designated broker and all that kind of stuff but like…So I don’t know it’s hard to just get a blank statement saying “100% models provide you nothing” because there are some that provide just as much as a full service. I am not really sure how they do that other than maybe just being massive or having you know no broken order or no staff or something. [Chris]: Nate what do you think? Do you think that played a part last year? [Nathan]: Yeah I mean again I am you know the indie small guy too that was with the big name. Still got a lot of strong opinions on it if you would. [Chris] : You? Nah. [Nathan]: It…It’s…I go back to the word we talk about all the time. It’s about value. But you know what we do now in 2018-19 is way different than what people did in 98-99. Like it’s just…it’s different so again you have to adapt you have to change.
You know somebody the other day was asking me you know questions about flat free models, this and the other. You know he was thinking about going to Cornecall [phonetics]. I hate the word. Everybody says it. But discount in commissions and again I can argue that all day. But I asked him…[Chris]: It’s a different model. [Nathan]: Yeah right that’s what I said. I said…I asked the guy and said “You pissed off at Amazon?”. And he said “Why?”. I said “You mad at Amazon?”. He said “Well no I get a great deal through them”. I said “OK don’t be mad at me”.
Right it’s just a different thing right. Nobody…You know everybody says that’s not a fair comparison. It’s just somebody did something different, right. And so I hate the word discount. Right it is what it is.
So…I think we will still see more people going to the independent side if the large big bucks brokerages can’t figure out this value component. I think too many people see through what they quote on quote “offer” right now. The smart ones that is.
Now you know a new agent, there’s different ways to go about it and what they offer them but I mean you call me. I just got a phone call. I know what it is about. But he’s gonna try to sell me on what they can provide me. Man you better come on with a strong pitch. Like best I know. Like…Because I am not going anywhere. So I don’t know…[Christian]: What…And I mean that’s the…that’s the tricky thing about the franchises and the value proposition is that they really are stuck in the where everyone is an independent contractor therefore we can’t tell them how to do their business therefore they don’t control any of the client experience for their agents. And all the tools they provide are totally optional you know and if they kind of suck because you know “Hey we have our own proprietary internal CRM or home search site or app” Or whatever. They’re probably gonna be terrible and part of the reason you’re paying so much is because you spend all these money to cut some bill some part stuff that can’t compete with Zillow or a dedicated third party CRM, you know. [Nathan]: It keep swinging at home runs. [laughter] [Christian]: I suppose indie brokerages which their focus is gonna be agent support, standardized culture and processes and training… [Chris]: We might have a bias [laughter]. [Christian]: Yeah I mean we don’t…that is…that’s what I have seen but universally that’s what I see. I look at any of the franchise around here and the client experience and value proposition is all over the place as opposed to indie brokerages where that is their bread and butter of the “This is the value we provide. People want to be here because of blah blah blah blah blah”. You know and somebody goes to franchise the only value proposition I hear is “Well you get the name”. And I am like “That’s not value proposition.”. Like… [Nathan]: If somebody comes to me again with “Hey once you’ve reached the third level…”I…If I wanted to be a recruiter guess what I would have been? I would have been a recorder. Like that’s just not what…That’s an MLN to me and you know and sorry if that bothers you. Actually no I am not sorry if that offends you. I am who I am. But…[laughter] getting to the third level whatever it is it has 0 concern for me. [Chris]: Every day I have somebody from EXP either friend me, send me a Facebook message, a LinkedIn request. “Hey what do you think is gonna happen with the market next year?” It’s like they’re pitching this. They study it. They train on it. [Christian]: I love it when they don’t do their research and they’re just pitching the brokerage owner. ”Hey you wanna come over”. Like “Yeah you don’t know who you’re talking to do you?”. [Chris]: There’s a lot of averages. Anyway. Back to your predictions Christian I think that you know when you talked about the efficiencies with tech putting tension on the percentage I don’t think you were off. But I think that what ended up putting more tension on it was how much value somebody can bring to the table.
I don’t think it was tech. I don’t think it was really tech putting the pressure on it. I think it ended up for 2018 really being how much value was brought in by the individual agent. Were they doing the things they were doing like the give back programs? And the high quality photos and met report?
I think that ended up playing a huge role also. Tech to the stand point that you know like you mentioned if they’re heavily leveraged, if they have lots of debt, they have to charge much more. I think you were right there but not necessarily on the bottom line percentage.[Christian]: The reason percentage. [Chris]: Yeah. Yeah I think in a…I think the broader reason ended up being value. [Christian]: Sure. [Chris]: And Nate after what you said I gotta presume that you agree with that? [Nathan]: Yes. [laughter] [Chris]: Alright so last but not least let’s hear what I had to say last year. Take it with a grain of salt.
“We’ve had a lot of tech. Like the last 3 years in real estate it’s been like nothing but tech. It’s “Oh what’s your website, what’s your SEO what’s your…you know how are you getting your leads? Are you doing you know the big 4 or you doing like predictive analytics now?” I think we’re gonna see a lot of step back in those services from a lot of agents. And I think there’s gonna be a big push as a lot of these suburbs bring in an urban feel as they’re being redeveloped. I know we’re experiencing a lot of that in Georgie.
I think we’re gonna see a lot of agents really refocus on being hyper local. I think it’s gonna be a lot of tech in the support and the systems and how they’re able to make the transaction smooth but I don’t see these big companies that are coming in trying to do disruption. I don’t think we’re gonna have a lot of focus on that”.
Alright so I also thought that there was gonna be a lot of tech. That there was gonna be a lot in the leads SEO, Zillow and predictive analytics which I think we saw a lot in that field. Right guys?[Christian]: Yeah. Yeah I mean there’s certain things that you know…I think that you…I don’t think…[background noise]. [Chris]: Stop doing that. It kills your mic [laughter]. [Christian]: I don’t think…Oh does it. OK sorry… [Chris]: Yeah [laughter]. [Christian]: Yeah so I can assure things that aren’t really ready for prime time. Like I can’t speak push on like AI or…you know Alexa Skills and that sort of thing you know they’re very rudimentary but there’s been a lot of focus on them you know. So we’ll see that grows in importance in 2019. [Nathan]: I don’t think it’s gonna grow really honestly. I think we’re kind of out of…hat do you call it. Out of very flat. I think people are still like…There’s a lot of discovery there has to be done with that stuff and I think we are a long way out before it really needs to concern any of us. But I could be wrong. [Chris]: Well tech played a big part. Now we have the whole conversation about the wrestle or the…the standardized data feeds that the MLS has put out. Here is a lot of pressure on the MLS to move to an API format which would pretty much make the IDX obsolete.
So there was a ton of work in the tech sector for 2018 but also probably my biggest prediction for last year is that we are gonna start seeing a lot of redeveloped neighborhoods. Lot of small town down town communities start urbanizing. Start feeling that…that kind of multiuse feel and that along with that we’re gonna start seeing an increase hyper locality with how the agents operate. I think that is where a lot of independent broker rise is coming from. Small brokerages operating on a very hyper local kind of manner. Really owing the neighborhood, owning the town, owning the down town. Are you guys seeing that?[Christian]: Yeah I mean definitively in kind of the urban area Seattle even you know even the cities do some pretty big zoning changes to increase density in the loafer or in the ADUs and putting in a new light rail and all sorts of changes for you know a denser urban core. So yeah. [Chris]: Nate what are you seeing in Ohio? You’re muted. [Nathan]: I just lost my whole train of thought when it got muted. [Chris]: Nate what are you seeing in Ohio? [Nathan]: You know what I see in Ohio and I will probably get slammed for this. We’re a busy market but what I see in Ohio is we’re always a day late and a dollar short or whatever it is. But we’re late to the party. I don’t know where I am going with this right now so just edit this out. My whole train it’s… [Christian]: But there’s been… [Nathan]: My whole train of thought just went sideways because I had a kid walk in the room. [Chris]: So we’re talking about the urbanization of downtown areas in the suburbs. So the hyper locality of agents about really owning that. What do you think are you seeing that in Ohio? [Nathan]: Here we go. Yeah you are seeing some hyper locality. There’s, you know, I could sit here and name quite a few agents off here real quick that specialize in certain areas. Again I still argue you don’t have to. Does it help? Yeah I mean why…why go and have this wide area that you’re gonna cover such as myself. I go everywhere. It can be a pain. When you can do just as well on a small hyper local area that has value.
I think you’re getting push back thought now form consumers a little bit because it…you have the hyper locality but you also have the gentrification of neighborhood that is pushing on a whole other segment that is causing a whole other problem that I could talk about for days. So there’s good and bad in it with both I guess. So…But you are definitely seeing it here.[Chris]: Yeah now you’re starting to see like brokerages really taking advantage of that becoming that hyper local brokerage, that downtown brokerage? [Nathan]: From the perspective of teams yes but not a brokerage like…You know downtown say you want to be in a certain area of the short north or what not here. VNR, View Tech and Rough you know like boom. But automatically they come to mind. Right?
If I go down to an area called Old Oaks than I think like Jim Ross. He was…left Key Realty to just go to Remax I think. So again it’s not necessarily the brokerage, it’s the individuals or the team that is down in that area.[Chris]: Excellent. Alright so I don’t know. What do you guys think? Do you think we were on point? Do you think we got 2018 right? [Christian]: I think we’re about 85% accurate. [Chris]: 85% accurate. [Christian]: Or maybe that’s me. Nate was pretty spot on. [Chris]: Nate…Nate I think was dead on. [Nathan]: I feel that I mean yeah I feel good about what I said then. I feel good about what I say now. But I don’t know looking at 2019 I think we’re gonna see…what’s the proper word. Regression? Is that right? [Chris]: Well let’s talk about that. Let’s talk about what we’re gonna see for 2019. Where do you think we’re gonna see regression in? [Nathan]: I think people have over complicated what we do. And I think we’re gonna see a “back to basics” kind of mentality. Which is upfront, relationship driven, client focused mentality for the successful real estate agent.
Now I want to be very specific. I want to say the ones that are successful I think really…You know when I say successful I mean long term but I think we’re gonna see a heavier focus on this relationship building, you know not kind of hit it and quit it mentality. Or letting AI do the work for them. Because they realize they have automated everything they do. They have lost touch with those people. I mean your word for 2019 is relationships. Right?[Chris]: Yeah. [Nathan]: So again I don’t…You know some of us can see the wiring on the wall so I think we’re gonna see that we’re gonna go back to basics. That’s what I’ll call it. Back to basics in what we do. AI is a good thing. The technology is a good thing but let’s get back to the core of who we are.
Joe Rand has got that new book coming out. I am telling you he even speaks about it. I guess I can say that. He talks about it. We’re gonna go back to basics so…[Christian]: Thank you Nate you stole my thunder. I was gonna say focus on relationships and client experience. So yeah there you go there’s my 2 sense. [laughter] [Chris]: Alright well Christian what else do you think is gonna happen in 2019? Let’s take your predictions now outside of you agree with Nate. Great. What’s gonna happen either market or interests, broker level? What do you think? [Christian]: Sure. I mean I think the markets, the writings on the wall I don’t think it’s gonna…I don’t think it’s gonna fully flip to a balance to a buyers’ market. But I do think the silage market is gonna severely cool.
You know like here in Seattle people are freaking out because, you know, the last half of year it you know home values have dropped 11%. But a year of a year it’s still up 2 %. So I think we’re start seeing the normal umbers of a healthy market which are gonna be 2-4% increase over a year and not 40% for the last 5 years which is what Seattle has seen. So…[Chris]: Yeah no biggie. [Christian]: So I think it’s gonna…I don’t think it’s gonna entirely shift. I think…you know or level out. I think it’s gonna continue going up in a much more moderate. [Chris]: I think that…I think that you’re probably on point there and that can probably speak in the nation as a whole. I think that for Atlanta we’re probably gonna see something similar. Continued growth, but growth at a much slower rate. I think that our growth rate is probably gonna be cut in half at best and probably by 90% at worst. But we’re still gonna grow. We’ve got too much infrastructure that is booming. We’ve got extreme demands for jobs here. So as long as that stays steady I think we’re looking at something similar.
So Nate you kind of covered what your predictions are for interacting with clients.
Christian you kind of covered what we can expect for 2019 for the market.
So I guess that leaves the broker level. What we can expect for brokerages. So for 2019 I think we’re gonna see a divergence in how…what kind of brokerages take off. And I think it’s gonna go really 1 of 3 ways and we’re gonna see a lot of movement in 3 different directions.
1 is you’re gonna see the Redfin partner agents and Redfin agents growing exponentially. I think there’s gonna be a lot of growth on that bottom sector of low commission, kind of higher quality service but low commission. So there’s gonna be that movement.
Than I think on the other side you’re gonna see agents moving towards very high tech companies. That’s gonna be your Compass. And your EXP. You’re gonna have that “We want high tech and we want low interaction”. They’re gonna be flocking from the traditional franchise model.
And I think the third direction that they’re gonna be moving into is the independent boutique. We’re gonna see a rise of boutiques that are very…cultured centric. You’re gonna see people who get together and the culture is the most important part. We’re gonna see a lot of rise from that. I think that you can expect a lot of brokerages across the nation that are maybe 10, 20, 30 agents right now to probably double or triple their numbers so long as they can keep the management and the culture intact as they grow. And that’s gonna be one of the hardest things to do that that segment is gonna have to kind of deal with and overcome.
But I think that we’re gonna have those 3 movements. Away from franchise into high tech, low touch into the low discount model high volume and then the independent movement.[Christian]: Interesting. Can I give a little push back into one of those? [Chris]: Please do. [Christian]: I think, I could be totally wrong. I usually am wrong. That the… [Chris]: No you’re 85%. [laughter] [Christian]: I am 85%. I think…I think that the discount brokerage model I think it’s…we’re not gonna see as much growth in that. I think that the word is starting to get out that you know Redfin is not so great. That the experience isn’t so great. The outcome isn’t so great.
At least that is what I have seen here. You know I have had a couple of…a couple of you know listing appointment that were like “I never list with Redfin”. You know. And because of that I think if you understand value and you maybe talk with people that use them you know word gets out that you know yeah you save a percentage or 2 but at what cost?[Chris]: Yeah and here’s the reason… [Nathan]: For clarity let me ask you a question. List with Redfin or list with a Redfin partner agent? Because they’re different things. [Chris]: Well hang on. [Christian]: I am saying the model. [Chris]: Oh boy. [Nathan]: Oh no you can’t do that, you gotta break it down. [Christian]: Well I am saying the model in the sense that like if your primary value proposition as a brokerage is more cheap that comes at a cost. And I think the word is starting to get out that discount brokerages by in large provide an inferior experience, results, whatever.
Now I mean obviously that depends a great deal on the agents but if your model is you know you’ve got one listing agent for an entire zip code of you know a million people there’s not gonna be a high touch good quality experience there you know.[Chris]: Wow and here’s the… [Christian]: You know and even Redfin is shifting greatly away from the original model to not being that much different than the conventional brokerage. [Chris]: Yeah here’s the reason why I think that that is gonna be one of the moves. [Christian]: OK. [Chris]: We have 1.4 something million realtors. We’re almost back to 2008 levels of the number of realtors. We’re gonna be switching to a market where agents don’t understand how to deal with properties that have been marketed long. So they…the time on market is gonna increase. It’s gonna be a lot of realtors that have not had to really work like hard to buy or sell a house. You know for the buyers agent their skill set is turn a nob and open a door. For the seller skill set the selling agent you know their job is to put the property on an MLS and let it sell. They haven’t had to challenge their skills.
So I think that when this market shifts we’re gonna loose agents. They’re gonna leave the industry. But I think that a lot of those agents may move to a higher volume lower skill set style. Not to say that Nathan is lower skill set but to a discount model of where they’re able to do a lot more business at a lot lower rate. Just because they don’t have that background to be able to go out and compete in the market with agents that are on a higher skill set.
Now Nate that’s nothing against you because you operate at a very high skill set. And your marketing is at a very high quality. But there are agents out there that do not. So…[Christian]: Yeah but there’s only so much room for them. You know Redfin is only gonna hire so many people. You know. It can’t be like “I can’t make it as an independent contract” or something. [Chris]: Yeah not just Redfin. [Christian]: Yeah that’s a big one yeah. [Chris]: But there are plenty of regional brokers. There are plenty of regional low cap brokerages that are not gonna force an agent into charging whatever the broker’s set rate is and they can go and charge whatever they want to charge. They’re gonna move in that direction. They’re gonna move to where they’re competing on price not on skillset. So…so… [Christian]: Oh sure I can see that. Yeah. [Chris]: So I am mending my predictions for 2019. It is not specifically to Redfin or Redfin-like companies but to companies where the broker is more lenient on what they can charge. Where they can set their own rate and they’re gonna compete on value. OK. [Christian]: OK I can see that. My hang up was kind of the Redfin model you know. [Chris]: Got it. Got it. So nothing against Redfin. Great company. Very high productive employee model company. [Christian]: There’s gonna be a reputation where individual agents in standard franchise aren’t per se. So… [Chris]: Well they’re also extremely productive because their salary. Unless they’re partner agents but the Redfin agents that are with Redfin corporate, their salary. So they are…
So recapping again for 2019 Nate what is happening?[Nathan]: We’ll see back to basics from a realtor perspective, agent perspective. We’re gonna see an interest rate bump. And we’ll see some market correction. We’re not gonna have crazy like last year which was great but I think we’re gonna see some stabilization which is…which is fine by me. [Chris]: Back to basics, relationships, more of a balanced market. Christian what’s your recap? What’s happening this year? [Christian]: Yeah I think the market is gonna be slowing down but not necessarily becoming byers market. It’s just gonna be a slow down on the increase in values. We’re seeing the economy like it used to be good and inventory is still rather limited but we’re plenty folding, it has been this whole last year. [Chris]: 2019 you’ve got our predictions. The word…my word is relationship for the year. I think that Nate is right on point with that. If you haven’t go to the website rtrepodcast.com. Subscribe. Get our updates every time a new episode is launched. This has been re:Think Real Estate. We’re now well into 2019. Let’s kick some butt. Take care. [music]
Thanks for tuning in this week’s episode of the re:Think Real Estate Podcast. We would love to hear your feedback so please leave us a review on iTunes. Our music is curtesy of Dan Koch K-O-C-H whose music can be explored and licenced for use at dankoch.net. Thank you Dan. Please like, share and follow. You can find us on Facebook at Facebook.com/rethinkpodcast. Thank you so much for tuning in everyone and have a great week.[music]