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Riding the Wave: The Impact of Real Estate Market Cycles on Agents

Here, we'll talk about the 4 real estate market cycles: Recovery, Expansion, Hyper Supply, and Recession, and how they impact agents - read here!

Hey everyone!

Today, we're diving headfirst into the exhilarating world of real estate market cycles, where we'll explore how these wild waves impact real estate agents.

Just like skilled surfers, agents must learn to ride each wave with finesse, maintaining balance and finding opportunities amidst the peaks and troughs.

So, buckle up your seatbelts, grab your boards, and let's ride the four major waves: Recovery, Expansion, Hyper Supply, and Recession! In each section, we'll talk about how each phase directly impacts agents - read on!

Recovery - The Resurgence Ride


(Photo from The Diplomatist)

Imagine that the market has reached its lowest point and that everyone is holding their breath in anticipation of a turn in the tide. The Recovery wave suddenly bursts in, rising from the ashes like a phoenix. This is the time to shine for real estate agents! As the market begins to recover, foreclosed homes become easy pickings. It's time to don your detective hats, search the market for undiscovered treasures, and strike deals that will delight our customers.

Building trusting relationships with buyers and sellers is the key to success during the Recovery phase. Our best resources as we help homeowners through their financial struggles and match eager buyers with affordable opportunities are empathy and understanding. Remember, this is the time to be patient and strategic, as we slowly paddle towards the next wave.

Expansion - The Thrilling Surge


(Photo from Nbb.be)

Welcome to the Expansion wave, where the sun is shining and the waves are getting bigger. Agents are currently in their element, similar to a surfer riding the peak of a massive wave. Property prices are rising as quickly as a seagull eyeing a fisherman's chips due to the soaring demand. In this thrilling phase, agent competition reaches a fever pitch, and we must seize the opportunity with vigor.

Our magic wand turns into marketing during the expansion phase. Utilize social media, catchy listings, and virtual tours to captivate potential sellers and draw in eager buyers. To avoid getting completely wiped out when the wave crashes down, take care not to get carried away in the excitement and maintain a cautious approach.

Hyper Supply - The Tidal Wave


(Photo from HousingView)

The real estate market takes us on a wild ride with the Hyper Supply wave just as we were beginning to believe that the good times would never end. We now find ourselves swimming against the forceful current of competition as the once-abundant properties flood the market. Even seasoned agents find this phase challenging because it necessitates creativity and adaptability to survive.

Presenting yourself as a knowledgeable agent is more important than ever during Hyper Supply. Customers want proof that you can steer them through rough waters and negotiate the best deals. Utilize technology to set yourself apart from the competition by providing 3D tours, virtual home staging, and in-depth market analyses. It's time to roll up our sleeves and get creative, turning challenges into opportunities to demonstrate our value.

Recession - The Ebb and Flow


(Photo from Parents)

What goes up must come down, as every surfer is aware of. We then reach the Recession wave. Sales slow down as the market takes a deep breath, putting our agents' resiliency to the test. Despite the temptation to stay inside and weather the storm, this is the time when true professionals shine the brightest.

Maintaining contact with clients is our lifeline during the Recession phase. Maintain open lines of communication while sharing insightful tips and guidance for navigating the choppy waters. Keep in mind that a devoted client today might become a repeat client in the future. Spend money on ongoing education, developing your abilities, and boosting your knowledge base to become stronger and more flexible when the market starts to recover.

And there you have it, agents – the four exhilarating waves of the real estate market, each with its unique challenges and opportunities. Just like skilled surfers, we must adapt, innovate, and keep our eyes on the horizon to ride the waves of Recovery, Expansion, Hyper Supply, and Recession with finesse.


As the market cycles shift and twist, remember that every wave eventually returns to the shore. Embrace the excitement, learn from the lows, and celebrate the highs!

As always, thank you guys so much for taking the time to read this blog post - we here at Transactly are always grateful for the support! Stay tuned for more content coming every Monday, Wednesday, Friday, and Saturday.

We'd also like to list down some additional sites that provided the inspiration for this blog post - go give them a read as well:

CrowdStreet: https://www.crowdstreet.com/resources/investment-fundamentals/real-estate-cycle-phases

Investopedia: https://www.investopedia.com/articles/mortages-real-estate/11/factors-affecting-real-estate-market.asp

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