News and advice
As the market changes – how will you protect your income?
It’s something we can no longer ignore, housing prices are dropping as inflation increases across the country.
With a 5.3% drop in housing prices over the last 12 months, making it the steepest drop in housing values since the GFC in 2008.
In response, sellers are becoming more reluctant to go to market during a downturn. With listings down 22.1% compared to the last 5-year average.
Listings are down, sales are down and housing prices are down. So what does that mean for the Real Estate industry who has just come off one of the biggest booms in the last 24 months? Nobody is immune.
Looking at the latest data from CoreLogic, every capital city is experiencing slower demands. As demand slows, so does the time taken to sell a property with the average days on market sitting at 34, up from 21 days in the last 3 month period.
This comes as no surprise the RBA cash rate is now at 3.1% – the highest it has been in the last 10+ years. Interest rates have risen from 0.10 to 3.10% over the last 8 months with increases of .25 and .50 at each review. It’s not looking good, and the last time we saw interest rate hikes like this was in the midst of the GFC in 2010.
‘Whilst it may have been a luxury to stay put whilst the market was hot. Now is the time where the most successful agents outlast the agents that were riding the high. Building your own business is the only way to weather the hit to your bottom line during a downturn in the market.’ Says Dan Argent, CEO and Co-Founder of UrbanX.
And with this in mind, three pertinent questions must be answered:
- Are you prepared to drop up to 40% of your income this year?
- What impact will that have on your life and family?
- With stock dropping, sales down, discounts on the rise and as interest rates skyrocket, what will you do to protect your income in 2023?
There’s nothing much that you can do to change the housing market, the great news is though, there is something that can be done to increase your income.
Let’s say you have a stagnant year – you were earning 500k GCI in 2022 and in 2023 that drops 25% to 375k. Under a franchise model where you take home 50% of that income, you stand to take home $187.5k – however with that 25% drop in GCI with UrbanX you stand to make $281.25k.
So, ask yourself: How would you like to increase your income even during a downturn in the market?
There’s never been a better time to change your outlook on your career and create a lasting future for yourself. Build yourself a legacy and increase your take home income. UrbanX does all the heavy lifting, all you have to do is sell houses whilst we support you with everything from Marketing and Brand development right through to your trust account management and IT requirements.
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